MNL - Manaccom

[shasta]

I've come across this interesting, undervalued company that isn't an O&G play, nor is it anything to do with resources!

Best way to describe MNL would be as a IT company. :eek:

They have interests with software distribution & publishing, & are involved with online gaming in Australia.

This recent presentation pretty much sums it all up...

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=210885

What to like:

* Just 43m shares (+ 3m options) on issue - Market Cap ~$10m @ 23c
* Profitable (increasing earnings, profits)
* Low P/E
* Low debt gearing (< 12%, & interest is 15 x covered)
* Dividend Paying
* 3 x 5%+ SSH on register, holding approx 46%
* CEO has been buying of late (& owns ~20%, incl in the above figure)

PS, Chart is a bit choppy, as the stock is fairly illiquid!

Disc: Nil held

[wbosher]

He, he...jumped 10.9% so far today with the collosal volume of 138. :eek:

[Lego_Man]

Cheers Shasta, always good to get some ideas on undervalued non- mineral/O&G plays - i need to diversify.

I'd like to know if anyone has an opinion on this thread over at hot copper relating to TFC too:

http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=929184#4216906

[Stranger_Danger]

I've been watching this curious little company for years (since the dot com boom!) but have never purchased.

Management have been there since then and are trying and wishing the market would notice, seem to be putting the results together etc.

Low liquidity is the major issue, but an interesting microcap. Lot worse punts out there I reckon.

[shasta]

Cheers Shasta, always good to get some ideas on undervalued non- mineral/O&G plays - i need to diversify.

I'd like to know if anyone has an opinion on this thread over at hot copper relating to TFC too:

http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=929184#4216906

Probably not a good idea to highlight links to other forums on ST!

TFC is in the same boat as alot of the MIS companies, check the FEA thread for some more info.

[Stranger_Danger]

TFC are *sort* of in the same boat - they actually shot the lights out in terms of MIS sales, but, removing all the "this is what we will do in future" talk they came in massively short of their target, but a lot better than average.

[Corporate]

Thanks for bringing this one up Shasta....I like little companies like these!

Don't quite understand how they make their money from lotto yet?

[shasta]

Thanks for bringing this one up Shasta....I like little companies like these!

Don't quite understand how they make their money from lotto yet?

Cheers, i'm currently compiling a comprehensive multi sector spreadsheet to try & filter out these kind of undervalued companies.

I don't care what they do & how big or small they are, if they are profitable, generate cashflows & undervalued then they have my full attention!

The Lotteries division had revenues of ~$A16m & appear to gain revenue by way of commissions (or "clipping the ticket") from sales gained through the lottery site as an agent.

(Same way Lotto works here, the agency gets a commission on the tickets sold)

I won't be buying until the chart & volumes improve however :rolleyes:

[Huang Chung]

Shasta/Corporate

You might want to run your ruler over Mint Wireless (MNW). Already supplying electronics gear to Officeworks, and have now signed a deal with Uniden. The portable payments system was their main game, but sourcing electronics gear seems to have grown in importance of late.

Investor presentation below actually refers to Manaccon as well.

http://www.mnw.com.au/images/News/Mint%20Wireless%20Shareholder%20Update%20June%2009 %20(E).pdf

Mint Wireless website:

http://www.mnw.com.au/

[shasta]

Shasta/Corporate

You might want to run your ruler over Mint Wireless (MNW). Already supplying electronics gear to Officeworks, and have now signed a deal with Uniden.

It's wet cold miserable day in the Nation's Capital, so i shall have a look & get back to you.

PS, MNL up 26% (from 23c to 29c) since i started the thread ;)

[Huang Chung]

It's wet cold miserable day in the Nation's Capital, so i shall have a look & get back to you.



Time you moved to Queensland Shas....after, all, half your countrymen already have :D.

[shasta]

Time you moved to Queensland Shas....after, all, half your countrymen already have :D.

I like Queensland, but you can keep your snakes, spiders & crocs :D

[shasta]

I posted about MNL on 2/7/09.

From the Australian on 3/7/09!

Clearly someone has been reading Sharetrader!

Manaccom (MNL) 26c

CRITERION: Tim Boreham | July 03, 2009

CRITERION has tracked down the real beneficiaries of this week's $106 million OzLotto draw -- and we're not talking about the two first division winners desperately trying to hold on to anonymity and a semblance of normality.

As we opined in Wednesday's column, the draw may have attracted zillions of dollars of free publicity but it has minimal impact on Tattersall's earnings because of the low-margin nature of the business.

Manaccom yesterday put up its hand and chimed "What about me?", to purloin the finest work of 1980s sensation Moving Pictures. Manaccom's ozlotteries.com site holds exclusive rights as online seller for NSW Lotteries and for Tattersall's in NSW.

Both contracts are held until 2013. Ozlotteries.com, by the way, was controlled by NZ entrepreneur Eric Watson, whose main claim to fame is thumping Russell Crowe in a restroom. It's called karma.

Manaccom chief Mike Veverka says the draw will have a "significant effect" on earnings, which can't yet be quantified. The "immense public interest" in the draw creates a spin-off benefit, in that customers sign up in order to buy the tickets.

Once subscribed, they're sitting ducks for the next thriller, such as last night's $15m Powerball draw.

Manaccom reported a $2.73m net profit in the year to June 30, 2008 (including a $730,000 one-off tax benefit), and $1m in the first (December 2008) half.

Veverka expects the full-year 2008-09 number will meet last year's $2.73m. This will reflect the NSW Lotteries deal, effective from last December, but not the jackpot bonanza (which flows through to 2009-10 earnings).

Manaccom also runs a software publishing and distribution arm, which produces security titles such as McAfee, Net Nanny and Zone Alarm under licence from their overseas owners.

The online division, which is low-margin but high-turnover, contributes 50-60 per cent of earnings and is seen as Manaccom's growth engine.

Based on Manaccom's 2007-08 earnings per share of 6.3c, the stock is trading on a humble ratio of four times and a yield of 3.8 per cent.

Criterion looked at Manaccom way back in the mists of time and the stock has done nothing since. Still, it has a solid earnings record, which is enough for us to ascribe a speculative buy.

[shasta]

MNL still looking good, up 3c to 32c (up nearly 40% since starting the thread)

https://ost.asbbank.co.nz/CA8D8C4920B496A15CDF4BC89F679F8C/Research/GetChart.ashx?url=http://asbc.iguana2.com/asb/hist/ASX/MNL/1y/1/cand/30/90/linear/rsi&q=633832903601981769

[shasta]

MNL still looking good, up 3c to 32c (up nearly 40% since starting the thread)

https://ost.asbbank.co.nz/CA8D8C4920B496A15CDF4BC89F679F8C/Research/GetChart.ashx?url=http://asbc.iguana2.com/asb/hist/ASX/MNL/1y/1/cand/30/90/linear/rsi&q=633832903601981769

MNL looking strong up 3.5c to 36.5*, with just over 100k left on the sell side.

RSI indicates it's in oversold territory, so will be interesting to see if/when it retraces.

* Up nearly 60% since the thread started, didn't buy in thou :o

[shasta]

MNL looking strong up 3.5c to 36.5*, with just over 100k left on the sell side.

RSI indicates it's in oversold territory, so will be interesting to see if/when it retraces.

* Up nearly 60% since the thread started, didn't buy in thou :o

More good news for MNL

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=212193

Gotta love the forecast share prices on the right side, Mgmt clearly see MBNL as undervalued!

[shasta]

More good news for MNL

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=212193

Gotta love the forecast share prices on the right side, Mgmt clearly see MBNL as undervalued!

MNL up 6c to 45c - something in the wind?

Getting sick of finding these gems & not getting onboard :o

http://hfgapps.hubb.com/asxtools/imageChart.axd?BI=2&COMT=index&OVS=XJO&TF=D6&TIMA1=20&TIMA2=20&s=MNL

[drillfix]

MNL up 6c to 45c - something in the wind?

Getting sick of finding these gems & not getting onboard :o


I hear ya Shasta, watched this move from yesterday and after it was on the news about the co (about how people shouldnt play the lotto but buy shares)

Ahhh well, cant be on everything unfortunately and especially when (me) one aint got a lot of do$h.

[shasta]

I hear ya Shasta, watched this move from yesterday and after it was on the news about the co (about how people shouldnt play the lotto but buy shares)

Ahhh well, cant be on everything unfortunately and especially when (me) one aint got a lot of do$h.

CEO Address to Shareholders

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=214926

Another sub $20m market cap company i like...;)

Current SP 43c

Still undervalued & ticking along nicely

[shasta]

CEO Address to Shareholders

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=214926

Another sub $20m market cap company i like...;)

Current SP 43c

Still undervalued & ticking along nicely

2 days later & MNL has fired past the 50c mark...

Chart showing the RSI > 80, & getting a little overheated

http://www.directbroking.co.nz/cgi-bin/sparkle.dll/superchart?template=dblsuperchart&session=0&instrument=MNL&exchange=ASX&period=6M&adj=yes&vs=LINE&ct=CANDLE&compi=&ma1=30&ma2=90&bb=&ind=RSI&ra=2

[shasta]

2 days later & MNL has fired past the 50c mark...

Chart showing the RSI > 80, & getting a little overheated

http://www.directbroking.co.nz/cgi-bin/sparkle.dll/superchart?template=dblsuperchart&session=0&instrument=MNL&exchange=ASX&period=6M&adj=yes&vs=LINE&ct=CANDLE&compi=&ma1=30&ma2=90&bb=&ind=RSI&ra=2

MNL - Investment report by Microequities

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=216193

Here's the research report

http://www.manaccom.com/docs/press/announcements/InvestmentReportMicroequities_25November2009.pdf

Target Price $0.63 v Current SP $0.46 = 37% upside ;)

[shasta]

MNL - Investment report by Microequities

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=216193

Here's the research report

http://www.manaccom.com/docs/press/announcements/InvestmentReportMicroequities_25November2009.pdf

Target Price $0.63 v Current SP $0.46 = 37% upside ;)

MNL has slipped all the way back to $0.35 :eek:

No fundamental reason for it, just a steep slope unable to find any support. (it's forward P/E must be down to around 5 now!)

CEO Mike Veverka topping up with another 20,000 @ $0.35 (now has a direct & indirect holding over 9m shares)

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=217682

Mike previously had bought another 20,000 @ $0.41, & has been doing so regularly, always a good look when the top dog is buying.

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=217609

[drillfix]

Hey shasta, are you in this one mate?

[shasta]

Hey shasta, are you in this one mate?

No, but i'm stunned to see it drop back to 35c!

[drillfix]

No, but i'm stunned to see it drop back to 35c!

No worries shasta, I think it seems to goes with the climate today by the looks of things.

But on No reason what so ever, can be a little harsh I guess.

[shasta]

No worries shasta, I think it seems to goes with the climate today by the looks of things.

But on No reason what so ever, can be a little harsh I guess.

Little volume on this small cap, & i guess off the radar...

[h2so4]

Thanks to shasta it's just come up on my radar.:)

[h2so4]

today looks a good day to get in for a swing trade, shame about the poor liquidity though.

AA

I dont have a problem with companies that make money.:D

[shasta]

I dont have a problem with companies that make money.:D

MNL - Half Year Report

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=218450

NPAT +12% ($A1.15m profit Dec 09HY)
Interim Dividend 0.5c fully franked

Gotta love Managements "Company Snapshot" on projected share prices based on PER's

Market Cap just $17m @ 41c per share

[h2so4]

Gotta love Managements "Company Snapshot" on projected share prices based on PER's



.................lol:D

[Lizard]

Gotta love Managements "Company Snapshot" on projected share prices based on PER's


Odd statistic to present as it almost implies that second half is projected to be the same as first half - which would be a reduction on prior year. Also, if they only have 3 year agreement on ozlotteries and it is their main breadwinner, should they really be on a P/E much above 3 plus an allowance for net cash? (Okay, that's a little unfair as there is also the option value on the chance of extending the contract and other parts of the business which have a value, even if currently not contributing)

Overall, I thought the report was good, but also wary that (without having the full accounts to check) they look to be investing more in intangibles than they are amortising - a situation which can be used to advantage in the short term to tweak operating profit. Overall, free cashflow was negative - although this is clearly not a significant issue in the short-medium term, but always nicer to see it in positive.

Nice commentary re January sales and also the possible potential in the US.

[shasta]

Odd statistic to present as it almost implies that second half is projected to be the same as first half - which would be a reduction on prior year. Also, if they only have 3 year agreement on ozlotteries and it is their main breadwinner, should they really be on a P/E much above 3 plus an allowance for net cash? (Okay, that's a little unfair as there is also the option value on the chance of extending the contract and other parts of the business which have a value, even if currently not contributing)

Overall, I thought the report was good, but also wary that (without having the full accounts to check) they look to be investing more in intangibles than they are amortising - a situation which can be used to advantage in the short term to tweak operating profit. Overall, free cashflow was negative - although this is clearly not a significant issue in the short-medium term, but always nicer to see it in positive.

Nice commentary re January sales and also the possible potential in the US.

MNL been trending down for a while now, but starting to turn around again (albeit on small volume)

Recent ann restructuring the software distribution division

http://www.asx.com.au/asxpdf/20100428/pdf/31pzykk1v8hmn8.pdf

Recent investment report by Microequities

http://www.asx.com.au/asxpdf/20100317/pdf/31pb76ps3v8vgw.pdf

Chart showing signs of life?

http://hfgapps.hubb.com/asxtools/imageChart.axd?BI=2&COMT=index&OVS=XJO&TF=D6&TIMA1=20&TIMA2=20&s=MNL

[shasta]

MNL been trending down for a while now, but starting to turn around again (albeit on small volume)

Recent ann restructuring the software distribution division

http://www.asx.com.au/asxpdf/20100428/pdf/31pzykk1v8hmn8.pdf

Recent investment report by Microequities

http://www.asx.com.au/asxpdf/20100317/pdf/31pb76ps3v8vgw.pdf

Chart showing signs of life?

http://hfgapps.hubb.com/asxtools/imageChart.axd?BI=2&COMT=index&OVS=XJO&TF=D6&TIMA1=20&TIMA2=20&s=MNL

MNL - Ninemsn agreement extended 2 years

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=224620

Important extension, given the lottery division generates the majority of there revenue & it's the profitable business thats drives MNL

Current share price $0.31

[Lizard]

MNL - Ninemsn agreement extended 2 years

http://www.stocknessmonster.com/news-item?S=MNL&E=ASX&N=224620

Important extension, given the lottery division generates the majority of there revenue & it's the profitable business thats drives MNL

Current share price $0.31

Good call, Shasta - closed 40cps today.

I came very close to buying after you posted that, but my (no doubt mis-placed!) "ethical investing" qualms regards gambling profits kicked in and I left it. Yes, excuses, excuses... :D