I wish I could agree. I just don't see any way they improve in the short term. Buying and holding for a few years isn't a terrible strategy, but the fear is that they are headed in the wrong direction. What are your thoughts?
I just don't see any real hope other than a buyout or sale of patents. The sale of patents doesn't offer enough upside because of the same reason they are losing to Google, Facebook, etc.: even with there fantastic magical patents they still can't compete with those big boys.
I absolutely like Barrett and I think MM could cut costs in the US and really attempt to make a foothold in Asia. That said, when the company is unable to turn the profit corner AND the stock is being diluted 16% a year in corporate officer options, its hard to see success coming in the near term.
In the end, I think my money can do a lot better in other places. Right now, I don't see any way they impress at the next earnings call. The best hope in the short term is another insider purchase. I will say i don't think MM is at any risk of boarding the doors in the next two years.
FYI, the last time there was a run up on no news after a post earnings slump it was insiders buying up shares. We learned after the unknown jump that Barrett bought 1M in shares. Someone filled about 200,000 shares right at the open...
It could be anything, but if it is another insider purchase, expect a big bump when the news in announced. "Changes in ownership are reported on Form 4 and must be reported to the SEC within two business days." I also note that the last time Barrett purchased he did so on a Monday/Tuesday morning, with the reporting occurring on the Wednesday of that week.
I can't fathom why a car rental company would have a P/E of 40 and 16B in debt. Hertz may be a fine company, but I don't understand what would justify that kind of P/E. Are we opening more airports and cities? Are they goes to start renting hover crafts?
I am by no means an expert but based on the numbers and what MM is currently doing, I think they are going to attempt to really focus in on expansion internationally; especially in Asia. It is a ripe/less competitive market. Any kind of footing there will make them profitable and extremely attractive for a buyout.
The big boys could purchase MM for "nothing" right now relative to their assets and normal acquisitions. If they wanted MM they would own it right now.
Agree on $12, but they are not after MM for the revenue, they are after MM for their patents and international footing.
I disagree with your last paragraph, but think that $2.50 is way too low and it is more likely than not to hit $3+ in the next month.
$1 per share in cash. A huge treasure trove in patents. There is a lot more upside here then downside. Insider purchases, partnerships, buyout, international expansion, platform licensing... While MM should take big lumps for a lackluster performance, I think the market over corrected.
You also can't ignore that of the approximate 100M shares they are issuing 16M new shares a year to executives. That is insane. Especially for a stock that admittedly needs time. Thats not to mention the Jumptag acquisition that didn't help the bottom line but further diluted the stock...
I have been following MM closely for about two years. Every single time I head "2-3 quarters away." What was also frustrating: MM clearly made a shift to earnings when they were close to turning a profit; they couldn't get it done over the last year so now they are "focusing on growth."