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Re: [sharechat] ASX: MUL UPDATE

From: "Cristine Kerr" <>
Date: Mon, 29 Mar 2004 11:28:30 +1000

MUL travelling much the same as always of late - 'short sell' strategy in place - has been this way for some time now - MUL has held up very well against this strategy.

This means a slight move upward could be a catalyst for a fine rally.

----- Original Message -----
Sent: Monday, March 29, 2004 9:55 AM
Subject: Re: [sharechat] ASX: MUL UPDATE

For those interested in learning more about MUL's potential, I have posted the URL to locate a Findlay & Co Stockbrokers report on MUL's website (Adobe format) below:

The Report is dated Aug 2003:
If you need a good reason to look it up, here's an extract from the front page:
Year Ended June 30 2003E  2004E  2005E  2006E
NPAT A$m                 1.3     34.0     82.0    139.0
EPS cents                  0.1       3.7      9.0      15.3
PER times                48.3       1.9      0.8       0.5
DPS cents                  0.0       0.9      2.3       3.8
Yield                         0.0%  13.3%  32.2%  54.5%
----- Original Message -----
Sent: Wednesday, March 24, 2004 11:18 AM
Subject: Re: [sharechat] ASX: MUL UPDATE

The tide appears to have turned.
Message -----
Sent: Friday, March 19, 2004 8:34 AM
Subject: Re: [sharechat] ASX: MUL UPDATE

MUL is showing early signs of stabilizing so keep a close watch.
----- Original Message -----
Sent: Wednesday, March 17, 2004 2:08 PM
Subject: Re: [sharechat] ASX: MUL UPDATE

I have been watching MUL closely and have been impressed with the way it has held up against a heavy downward strategy.
Also, there appears to be a sufficient level of support exhibiting stable behaviour.
These factors may contribute to stabilization, followed by an upward turn.
----- Original Message -----
Sent: Tuesday, March 16, 2004 10:58 AM
Subject: Re: [sharechat] ASX - MUL

Thought this may be of interest:
The following is copied from Midland Funds Management website (publicly available):
' ... Over the past few weeks, the value of the Fund has moved up and down within a five percent range.  Much of this volatility is due to our largest position, Multiemedia (MUL.ASX), which has had huge swings of up to ten percent in a single day.  Although this stock is heavy with short-term traders, I anticipate that in the long run holding this position is the right thing to do, rather than trying to take advantage of the swings.  The reason for this is simple – I am still anticipating large moves triggered by either several good announcements in quick succession or when earnings numbers come out that take into account the company’s recent contract wins and activities.  I do not want to have anything less but the largest position possible when the big move up comes, and because the moves are so quick it is necessary to stay fully invested.  There are many other factors that could give the stock a boost and I feel it is only a matter of time.  Multiemedia recently announced that it is buying a North American company to help expand its reach globally and also announced that it will be seeking a NASDAQ listing, which would theoretically bring a new influx of capital and investors to the stock. ... '
----- Original Message -----
Sent: Tuesday, March 16, 2004 10:28 AM
Subject: Re: [sharechat] ASX - MUL

MUL - A strategy is being executed to bring the share price down and whilst it is in play, wiser to remain an observer or, depending on your investment and exit strategy, hold-on till it turns.
----- Original Message -----
Sent: Friday, March 12, 2004 6:42 PM
Subject: Re: [sharechat] ASX - MUL

ASX Notice 6.09pm today:
Adrian Ballintine, Managing Director & CEO, held over 30M shares (specifically 31,008,976 shares) and sold 3M shares.
To put this sale into perspective, he sold 10% of his holding to gain $231k.
10% doesn't concern me.
I would have been quite happy to do the same.
----- Original Message -----
Sent: Monday, March 08, 2004 10:03 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

News link may be of interest:
A similar story was published in last Saturday's (6/3/04)Business Section of The Courier Mail.
----- Original Message -----
Sent: Friday, March 05, 2004 9:50 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

NB As I understand it; Fund Managers buy the ASX300 - good company to be in!
----- Original Message -----
Sent: Friday, March 05, 2004 8:41 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

Keep an eye on MUL today. They just made it onto S&P's top ASX 300 list!
----- Original Message -----
Sent: Tuesday, March 02, 2004 10:56 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

Large sell order at .081 has just been removed.
----- Original Message -----
Sent: Tuesday, March 02, 2004 9:15 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

Due to its significance, I have copied an extract below:
(Extract from Media Release located on MUL's website at:
Entitled: Australia’s Multiemedia in multi-million-dollar deal with US military in Iraq

Dated: Tuesday, 11 November 2003
' ... Mr Ballintine said Multiemedia had not planned to activate the satellite beam over the Middle East/Africa until next year because of the cost involved. “However, with the US military and the other customers we signed in Dubai, we have brought it forward 12 months earlier than anticipated.’’ ... '
The significance of this statement is in the 'pull market' factor (as opposed to a 'push market' factor), that is; there is a large untapped market demand that caused Multiemedia to bring forward plans by 12 months.
A 'pull factor is extremely rare and therefore; highly significant.

----- Original Message -----
Sent: Monday, March 01, 2004 4:55 PM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

This profile of this stock suggests it is destined for a very successful year and a significant upward price movement.
----- Original Message -----
Sent: Monday, March 01, 2004 9:15 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE


MUL - Multiemedia - Overview of Half Year Report to 31 Dec - released to market Friday, 27Feb,  7.50pm


  1. Revenue $8,202,000 (down from same 6mth period Jul-Dec 2002 - $14,505,000)
  2. Net Loss $4,558,000 (up from same 6mth period Jul-Dec 2002 - $518,000) - Loss in in line with the Board's expectation of loss for this period Jul-Dec 2003.
  3. Cash burn rate - associated with sales and development work in progress


  1. Current Assets UP since June'03: $14,923,000 ($4,101,000 - June 2003)
  2. Non-current Assets UP since June'03: $3,651,000 ($2,026,000 - June 2003)
  3. Curent Liabilities DOWN since June'03: $3,833,000 ($6,893,000 - June 2003)
  4. Non-current Liabilities DOWN since June'03: $296,000 ($369,000 - 2002)
  5. Board is confident work in progress will see a substantial turnaround by June 30th. (NB Refer positive announcements since 31 December.)
  6. 1,376% increase in assets over liabilities.
  7. Cash at bank (as at Dec03) - $11,000,000
  8. Disposal of non-core businesses has been finalized.


  • Businesses: Both of the following synergistic businesses have been branded for global recognition in conunction with independent marketing and advertising agencies.:

High speed satellite broadband: NEWSAT - Newcastle based teleport being developed into a world class facility with the capacity to initially provide hi-speed broadband connectivity to 60% of the world's population. Customers secured in Aust, PNG, Timor, Iraq, Iran, Bahrain, Saudi Arabia, Lebanon.

Technology Distribution: MTD - For the Jul-Dec'03 period, this segment contributed the majority of revenue.

New staff with skills to drive both businesses will underpin a successful future.

  • Events subsequent: MUL have released very positive ASX announcements since December 2003.

In my opinion, this company is set to do extremely well this year and beyond so should attract a lot of interest now from longer term holders which will be great for the share price.

----- Original Message -----
Sent: Thursday, February 26, 2004 10:17 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

Anyone have a theory as to why a large order would be placed at .08c two days running, then removed?
----- Original Message -----
Sent: Thursday, February 26, 2004 7:26 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

Those interested in Multiemedia may be interested in news items on their website.
In particular; this media release may be of interest: - Australia’s Multiemedia in multi-million-dollar deal with US military in Iraq
Tuesday, 11 November 2003
' ... Australian two-way satellite broadband provider Multiemedia, in conjunction with its UK-based partner Transcom, has scored a major coup in winning a multi-million-dollar deal for the US military.
While the deal is initially worth $5 million to Multiemedia, it could be worth up to $40 million as the United States Agency for International Development intends to roll out additional sites across Iraq as part of its post-war enforcement and governance program.
Multiemedia Chief Executive Adrian Ballintine said the wireless two-satellite service would allow the US military to communicate from anywhere in the Middle East.
“There is only one service provider in the region providing any form of satellite service, and that is quite old. The US military will now be able to set up sites across Iraq and simply, by pointing their dish in the right direction, will have Internet and communication service equivalent to anywhere in the world,’’ he said. ... ' + more promising news - view complete media release on website.
----- Original Message -----
Sent: Monday, February 23, 2004 9:00 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia UPDATE

MUL - ASX Announcement this morning:
Acquisition of IP Access International
Multiemedia Limited is pleased to announce the signing of a Letter of Intent to acquire US based IP Access International including their North & South American Satellite business and global network and customer base.
Preliminary due diligence has been undertaken ...... Further due diligence will be undertaken ....... over the coming weeks, with a view to executing the definitive Purchase Agreement within 60 days.
........... consideration for the acquisition is part shares and part cash and earnings per share in Multiemedia are expected to increase as a result of the acquisition.
Intention to Pursue NASDAQ Listing: As part of its strategy to expand its worldwide network and to access the US Institutional and Retail shareholder base, Multiemedia has secured sponsorship from the Bank of New York to establish a Level 1 American Depositary Receipt (ADR) Program that is expected to lead to the trading of its ADR's in the US Over the Counter market with the ultimate intention of trading on the NASDAQ Exchange.
Directors of Multiemedia will investigate an appropriate schedule and strategy for further development of the ADR program to the benefit of all shareholders.
----- Original Message -----
Sent: Thursday, February 19, 2004 10:41 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia

MUL - Multimedia (not yet edited):
Total Shares Issued: 1,140,605,652  (Very high - will impact liquidity)
1) Price:
Reached .006c April 2003 so there could be long term holders out there who could afford to go close to this and still be in front.
Also, has only been travelling in the 6-12c range since around September2003 so there is some danger from those who bought well under these prices between Feb02 and Aug03, however; one would think if they were going to get out, they'd have already taken advantage of recent increases SO my best guess is there would be some stability/support around 6c.
2) 10.2.04 announcement - new issue: 1M shares are payment for consulting services
3) 14.1.04 - significant contract signed with Airworks on behalf of major Airworks client, Woolworths - conditional on certain commercial criteria - based on satellite broadbank to 700 Woolies stores - includes additional hardware sales opportunites - hailed as vote of confidence in NewSat solution which went live Oct03 (could be commercial criteria have been met so the build up could be related to this announcement)
4) Director share purchase: Clinton Starr 20/1/04 - disposed 802,809 for $47,595 in January, 6/2/04 - disposed 2.5M for $209,668 in Feb, shares remaining 25.5M, so disposal did not represent a large percentage of his total holding but an opportunity to take advantage of increased share price.
5) 6.1.04 - USA Dept of Defence now live in Iraq - opening of Middle Eastern/African NSS6 beam - first customer US Dept of Defence went 'live' - successfully implemented a hub that enables broadband to over 30 countries - Multimedia's Newcastle based space facility is considered to be one of the most advanced VSAT communications Hubs in the world with both the Aust and middle eastern services operating simultaneously
6) 16.12.03 - two tranches of options were issued a) 35M @ 10.5c b) 55M @ 8.75c (exp 1.12.08) were allocated
7) Change of Directors Interest Notice: 4.12.03 - John Walker - acquired 83,333 $5K, sold 25,000 $2.5K - held after change 643,333
8) Change of Directors Interest Notice: 4.12.03 - Adrian Ballintine - acquired 166,666 $10K - held after change 31,008,976
So far, with the exception of number of shares and number of options on issue in terms of liquidity, all very, very positive.
9) 3.12.03 - allocation of shares as result of SPP (share purchase plan) - a) 249,999 @ 6c and b) 15385 @ 6.5c
10) More director share change announcements - not yet viewed
11) 13.1.03 - delivers broadband - WaveCall, the world's leading provider of Maritime Satellite Voice and Data Services has selected Multimedia's NewSat services to exclusively deliver broadband to ships at sea within Aust coastal waters utilizing SeaTel's state of the art antenna system. Service available during first quarter 2004.
12) 14.11.03 - Chairman's address to shareholders: very positive - refers to VSAT as having extraordinary potential
13) 1.10.03 - full year accounts $16,027,818 net loss in 2002 was quite high but was reduced by 30 June 2003 to $5,623,809. As at 30.9.03 company had liquid funds of $1,696,375. Events subsequent - $4.25M capital raised through clients introduced by Findlay & Co Stockbrokers. Reduced costs, supplier relationships improved and broadened. Director's shares as at 30.6.02 - 63,483,977. Total liabilities were $7,264,224 and without recent financials it is difficult to ascertain current revenue, debt, (and possibly profit) levels.
The wise and cautious would wait for release of financials before committing. This does not mean that everyone will wait for this as a look at the buyer volume tells us that there is anticipation in the air. Perhaps an anticipation of a half-year report.
A) Suffice to say  the release of positive/optimistic financials would push this higher. Loads of potential if they keep up this progress.
B) Providing cash burn is OK, debt has remained stable or has been decreased, and sales are continuing to come in, it should remain relatively stable but this would depend on market sentiment, i.e.; it appears the market is anticipating good news. Because Mr Market is very sensitive, he doesn't like it when his expectations have not been met. This could cause some volatility, which is a higher risk when liquidity is an issue due to higher total share volumes.
C) Anything outcome other than A) or B) is likely to cause a sell off.


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