Good morning!

Just a small request. Quite often people ask me to look at particular companies that are reporting on the day, in the comments section below. Obviously I can't report on everything, so have to pick & choose which companies look the most interesting each day. So it really helps if, when asking me to look at a company in the comments below, people can explain why they think the company is worth looking at. Not only does that pique my interest, and make it more likely that I will actually look at it, but also it makes the comments section generally more useful, in that other readers can then take a look at the share too, and we can have a more informed discussion on it.

Also, it's handy if people can put the ticker or name of the company they are referring to, in all comments, as sometimes it can be difficult to ascertain which company someone is actually commenting on, where I have covered several in a report.


Monitise (LON:MONI)

Share price: 3.13p (up 44% today)
No. shares: 2,213.0m
Market cap: £69.3m

Background - this is a special situation, which I outlined here on 12 Feb 2016. It's a fallen star, which is now slashing costs in a desperate bid to stay afloat before the cash runs out. Whether there is any ongoing value in the business, who knows?

Possible disposal - today's announcement is interesting in that it highlights possible hidden value in the group, with the announcement having been triggered by a spike up in the share price.

Talks are at an early stage to possibly sell a non-core subsidiary, called MarkCo Media. I can't find anything at Companies House relating to this company. However, MarkCo's website gives details of the acquisition of the company by Monitise for £24.5m in confetti (Monitise shares) when they were 56p. Ooops, so a really bum deal for MarkCo's former owners. There is also an earn-out, which could lead to the issue of more Monitise shares.

It seems to have been close to EBITDA breakeven back in 2014 when the acquisition happened, so loss-making in proper accounting terms. However, who knows how things have progressed since? It seems to be a voucher, and ticketing type of company.

My opinion - this deal looks to me as if it might be the former owners…

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