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Multiband Corporation Message Board

  • dickeypiper1 dickeypiper1 Nov 9, 2010 9:39 AM Flag

    Raised Guidance

    PR released today. Earnings and CC after the close tomorrow. Unless I'm missing something (balance sheet not great but we've all seen worse) this should be at least a $5 stock.

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    • Brew,

      Being perplex about the balance sheet is good approach to investing.

      What I can tell you is that Multiband went out in 3Q into a 'roadshow' to raise the company visibility. The last event in NY is a webcast you can listen to.

      The two major debt events are
      1) the DTECH $29M issue, which was $40m when Multi acquired some DTECH.
      The note is due in 2013. Multiband projects that their EBITDA ( cash flow) will cover this note.

      2) A Convertible note held by the pension fund. The $10M note is convertible into common shares at $2/share in 2013 (i believe). Comment there: sahres will be vested to a couple thousand employees over 3,4, 5 year period. So If they sell when vested, it will not be all at one time.

      The $47M figure should be clarified further but the CEO and CFO live presentation did not call it out as a concern for investors. For a small company like this talking to micro-cap bankers, this owuld have been a kick in the pants!
      Also, write to IR if you want to have a break-out of the $47M.

    • >>Two different posters have refuted your supposed 'concerns

      I guess if you want to just ignore that $47m warrants capitalization number on the balance sheet - which is nearly double the market ca - that's your choice.

      But please show me the warrants and option mentioned in their filings that can actually account for this $47m number.

    • brew, seems as if you twisting things to support your 'position.' Two different posters have refuted your supposed 'concerns.' The warrants are priced way above the current market price and there will not be a 40% increase in shares being sold at a deep discount.

    • Count their $47m of "stock based comp and warrants" part of the capitalization and suddenly it doesn't look like such a bargain. Plus you need to add $32m of net debt and $15m of preferred stock to the market cap.

      $30m market cap + $47m "warrants" + $32m Net Debt+ $15 preferred = $124 m enterprise value. Looks expensive relative to current cash flow.

    • There is not yet a big spike in price based on this news. I think investors are waiting to see what the actual EPS is. But if they have higher EBITDA and sales and hold their margins, obviously EPS should rise. So if we see .50 for the past 2 quarters price should increase significantly. Also with 20 million EBITDA and 10 million shares that comes out to $2/share. Mulitples in the telecom services industry tend to run in a range from 3 to 1 to 6 to 1 or so it seems. So at the low end of those ratios that implies a $6/share price for MBND given their relatively poor balance sheet.

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