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It's a shame that these BB's are frequented by a bunch of day trading numskulls that keep changing their names.
3% is normal - but because MMAG are in an 'offer period' disclosure is required for 1%
I do still believe though that there are circumstances where a party may not need to disclose wit permission from the Takeover Panel in certain circumstances.
I ask because I've seen the recent disclosures at 1% however a significant shareholder is any person with a holding of 3% or more in any class of AIM security, or that's what I'm reading.
Moving on though, does anybody know where the BT Group interest derived, was it from their discussions to supply white appliances in the near future and MMAG having the ability to also operate in the second hand market there? The chatter in the industry intrigues me, nearly as much as the sledging on this chat!
BT own EE
Refurbs are very useful to MNOs as they can sell their airtime packages with them and acheive a lower MRC (Monthly recurring charge)
EE aslso have the opportunity to buy many second hand handets when they acquire or retain a customer
So having MMAG would have given them control over refurb process and greater reach to procure greater number of handsets.
A bit of good news on the inflation front today. quite a few retail stocks are up 4%. MMAG might follow.
https://www.reuters.com/markets/currencies/dollar-reigns-supreme-hot-cpi-cools-bets-fed-cuts-2024-02-14/
full year results 2-3 weeks away?
BT/EE have a strong brand, if the main reason to acquire MMAG was to increase throughput of second hand devices then wouldn't they have looked to strengthen their offering that's already set up? Their own recycling website isnt competitive on pricing and isn't on comparison websites. The service is backed by Likewize, a Multi-Billion $ company who are primed for any increase in volume. I've seen their Northern American facilities stock upwards of 150k devices valued over £60m. So my thinking is there was more at play.
Saying all that, it's not relevant now, but perhaps, MMAG had interest from BT/EE due to it's undervaluation throughout last year alongside MMAG ability to assist with what I mentioned earlier, the potential of white goods being introduced into their product stack. Now with a failed acquisition MMAG is perceived as weaker still, dropping the valuation further.
A rebound is very likely, any guess to where is just that, but fingers crossed mid-20s post results in early March!
On another note, does anyone know when renting a device from MMAG how the VAT works. Buying used mobile phones from consumers qualifies for Marginal VAT. (pay VAT at 16.66% on the margin rather than sales price). So VAT due on a device that was purchased at £150, and sold at £200 would be £8.33 (16.66% of £50) - just curious as it may also have some impact on why B2B markets aren't considering acquisition here.
Never got why they changed their name from Brightstar to Likewize!
I assumed they get the vat margin sale on the eventual sale of the rental asset. That’s why i am concerned about how they are booking and managing rental assets on the balance sheet. I fear they may not be depreciating them or booking an @ market accrual on rental assets.
You have pointed out a major factor why the BT would not work. B* lost Voda a while back and Ee are probably also set in a path which would integrate trade in with their supply chain. SBE/B* integrated trade in and refurb makes sense for Ee and I think they do that for the most part already.. Sort of like Voda and ANOVO.
Mmag does not really fit. However Likewize, New World, PCS might be ‘out the box’ options. Assurion would be the most obvious I’d have thought. All that Vat margin product for insurance fulfillment would work and they could probably integrate declutter with that repair retail outfit they bought a while back … was it ubreakifix or something similar? I would not know but maybe assurion are using Hanson’s software for some of their processing….
That said, my favourite is still manamgement lead move to delist…get off the exchange and work to some better valuation/exit down the line.
Me either, I’ve been in the industry for a few decades now. I saw ICT reverse/Mazuma was mentioned earlier in this chat, I remember when MMAG went to ICT back when it was SHP close to 15 years ago for them to do their processing. Times have moved forward since then!
I have only briefly looked at it but the rentals work, desperate consumers pay high, nearly a pay-day loan model. It is though risky, as recently shown, so I can only imagine this particular rental model was started to prove it worked with a view to securing a different financial model when the trust was there. When MMAG first started renting, banks wouldn’t look at supporting with finance due to it being used equipment and the risks of manufacturer warranties not being there. With all the sustainability pushes, that has very much changed over the last few years and I see the risk of a large revolving credit facility reducing as a leasing offering will be at the forefront of their marketing very soon.
Whether its acquired, delisted or otherwise, the valuation is low and I see a value rise soon, a cutting of costs and staff will show increased margins in the July interim results
Another day closer to a nice trading update or bid for the company. :)
As with many investments - patience is the key here
Lots of evidence to suggest significant buying
Despite all the 'doom and gloom' that the haters try and project - the company continues BAU and all the major shareholders holding firm; obviously with the exception of the 11% Cannacord stake which has changed hands - but not clear who's hands yet
GLA
Thoughts on a Dividend Declaration, used to increase MCAP?
Why would I want a dividend when they have debt. I would much rather them use the cash to pay down the debt and not have to continue to pay interest, especially in this environment.
6 trades all day and now less than 10p.. crazy when there was BT interest In a buyout
Been watching this on takeover expectations and hoped to see some fireworks but high a year ago and low this month?