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Multiband Anonim Şirket Message Board

  • dickeypiper1 dickeypiper1 Apr 10, 2013 10:19 AM Flag

    wonder if IB's contacted Mandel

    about buying CPIC.....of course it would take a few quarters to do it but what better leader to turnaround those portarit studios? Seriously that was a textbook example of a company saddled with too much debt and they ended up in bankruptcy. If left alone that is what will happen to MDTV. Wait...they found a SUCKER to pay off their debt and acquire them instead.

    Again if anyone has any info (pro forma financials, etc.) that supports the MDTV acqyuisition please share it. Thye only thing I've heard are potential synergies. Unfortunately on every CC we hear Mandel say how it takes several quarters for an acquisition to become profitable ......guess that no company has ever made an acquisition that was immediately accretive to earnings. It is a safe assumption that adding MDTV will immediately result in bottom line losses. Of course Mandel can boast about an increase in revenue..........

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    • SG&A is what's killing MDTV. It's nearly half of their revenue. MBND already has the support centers in place to probably reduce that cost by 50%+....making them profitable. I still think they should try to get a debt reduction in the deal though.

      Sentiment: Strong Buy

      • 1 Reply to buckeye8810
      • Thta's a good place to start but in regards to the pro forma financials of the combined companies unfortunately MBND management has provided zero info/guidance. Little doubt that the belief right now is that MBND is borrowing money to purchase assets that will lose money. It's up to MBND management to say/prove otherwise and all we have is silence. Think it is a safe assumption that when borrowing money to acquire assets one would have the expectation that the assets are profitable / accretive to earnings. Mandel is the only CEO that I have ever heard say (he says it on every CC) that it will take several quarters for the acquird assets to be profitable.

        Only hope is that the large institutional investors (acting as the 'adults' in the room) step up and end Mandel's crazy schemes/ideas. He should be immediately replaced. IMHO