MUL multiemedia limited

article "the age" 5.8.03 today

  1. 61 Posts.
    Did anyone read this article today...? Sounds like this Stock is finally going to go places.

    I'm glad I hold MUL...


    Multiemedia stock soars after British satellite deal
    Author: Colin Kruger
    Date: 05/08/2003
    Words: 261
    Publication: The Age
    Section: Business
    Page: 3


    Sydney
    Shares in Multiemedia rocketed more than 57 per cent yesterday after the former dotcom reported a deal to provide its broadband via satellite service to customers of British internet service provider Transcom.

    Multiemedia is contracted to provide its telecom services to the British company's customers in Australia and the Pacific rim. The deal is forecast to generate orders worth $15 million over the next year, said Multiemedia.

    ``We expect this to be a very profitable business over the next 12 months," said the company's chief executive, Adrian Ballantine.

    The company would not offer any forecasts on how this would affect its profitability this financial year, but for the first half ending December 31 last year, Multimedia reported a profit of $518,000 on revenues of $14.5 million.

    The news sent Multiemedia shares up 1.5 ¢ to 4.1 ¢ with 252 million changing hands, representing almost one-third of its issued shares.

    The company has struggled in recent times, but shares have lifted from an all-time low of 0.7 ¢ in May this year after the company signed up partners for its satellite service including software giant Microsoft.

    Investors will not be the only ones to prosper from the higher share price though. The company's shareholders are set to vote at a general meeting later this month to ratify an agreement which could deliver a bonanza to Mr Ballantine and independent director Clinton Starr.

    The two provided $250,000 in funding to the company in April this year which they are looking to convert into equity at 1.25 ¢ a share.

 
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