I think Monitise did the right thing in acquiring Clairmail. Any company that wants to succeed in what will be the greatest growth business in the world, mobile money, has to move fast and grow fast. But on the other hand the acquisition has caused them to swell their share count to over 1bn shares. Thast a lot of shares for a company that hasn't yet recorded a profit. At the current price of 25p that values the company at 250m pounds.
Now The CEO has said that the combined revenue this year will be around 100m, so that makes the company valued at 2.5 times earnings. That is actually a low figure if they can deliver. I think a lot rides on their first combined financial report, and the substantiation of the growth that they predict. Another factor that concerns me is that I think the Nasdaq insists that shares be over $1 and Monitise shares trade at 50 cents. That may explain rumours of a full Nasdaq listing as the ADR's are currently I believe, below legal limit.
Now The CEO has said that the combined revenue this year will be around 100m, so that makes the company valued at 2.5 times earnings. That is actually a low figure if they can deliver. I think a lot rides on their first combined financial report, and the substantiation of the growth that they predict. Another factor that concerns me is that I think the Nasdaq insists that shares be over $1 and Monitise shares trade at 50 cents. That may explain rumours of a full Nasdaq listing as the ADR's are currently I believe, below legal limit.
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