The Business Model.

The mutual.net plc, the AIM quoted on-line reward company has developed a website to act as a portal for its members to access around 500 online shopping sites. Themutual.net incentivises shoppers by rewarding them with shares in the Company or with points which are redeemable for cash. themutual.net now has over 1.15 million registered members. This Xmas as seen an explosion in online shopping and all indications are that this one as done very well.

Highlights From Last Interim Results 31st Oct 2004.


Membership grown to over 1.15 million

Over 1 million visitors sent per month to advertisers' websites

Share consolidation completed, cash rewards introduced and share buy-back
programme initiated

Increased revenue by 94% to 1.53 million (6 months to 31 Oct 2003: 0.79m)

Doubled EBITDA to 0.68 million (2003: 0.34 m)

75% increase in pre-tax profit to 0.38 million (2003: 0.22m)

Cash at bank increased to 1.225 million (against 0.919m at April year end 2004.

Director Speak.

Mark Smith, CEO, said: 'This has been a period of good progress for
themutual.net, which saw the company consolidate its position as a major
facilitator of email marketing and online shopping. We are delighted with the
strong growth in our website and email marketing revenues, which has flowed
through to enhance our profitability and balance sheet. With the development of
MutualShop and the substantial continued growth in the online advertising
market, we look forward to the future with confidence.'


Activity During The Period.

During this period we implemented a number of strategies to deal with the
challenges that email marketing faces now and, potentially, in the future.
These included:

* Working closely with ISP's to improve understanding and cooperation with
regard to email delivery;

* Double opt-in registration to ensure the validity and quality of new
members;

* Collection and use of increased targeting data to assist in delivering
mails that are both relevant and effective to our members and our clients;
and

* The introduction of an eCRM program to educate new members and further
encourage existing members to utilise our services.


Outlook Statement From The Chairman.

From our website activity, themutual.net now generates in excess of 1,500,000
of online sales for our website partners each month. We anticipate this will be
greatly enhanced by the introduction of the MutualShop, our new shopping portal
which is due for `soft' launch shortly before Xmas, with a final launch to
include price-comparison shopping and full functionality by the financial year
end. This is the largest overhaul of the website that the company has
undertaken, including a full redesign, and will be further supported by adding
user functionality, allowing better control of their membership and the number
of emails received.

To have managed such internal change while the company continued its
substantial growth in revenue and profitability is a strong achievement and
testament to the scalability of our business model and operations.

We have also begun exploratory analysis of launching a similar product into
France and Germany. We will report on this further at the year end.

Fundies.

In their note of 29th November 2004, Durlacher has forecast 2.2p a share in earnings for 2006, which means that TMN is on a forward PE of just over 14.

The average multiple for the sector is 26, and then there is ASOS on a 2006 PE of around 27. Clearly there is a good argument for TMN to be re-rated.

I notice that Growth Company Investor tipped TMN recently at 30p. Hopefully the next few months will ensure the re-rating will get underway for themutual.net.

Dyor.

cheers Gf.

Moving up again.

cheers GF.

News Just in Evil Knievil as opened a long position in this one with a maiden stake of 25,000 shares. He says its too lowly rated and is a cash cow.

Very good news then as that should mean the share is pushed on t1ps.com.

cheers GF.

Hi GF, does slater ring any bells????????

Yes its me.
cheers GF.

hi gf
i am thinking of starting a tip sheet
any advice

regards HUSTLER

Yup invite me to make a guest appearance or a dedicated column each month LOL.

Hustler if you have time could you please send me a PM.

cheers GF.

will do gf - over the weekend

regards HUSTLER

From Todays IMRG update....

e-christmas internet sales soar 20% (17/1/2005)
--------------------------------------------------------------------------------

Online shopping sales sparkled again as usual this Christmas despite significantly weaker retail demand, and in sharp contrast with disappointing high street's results, following what the British Retail Consortium described as "the worst Christmas for retailers in the last decade."

E-retail sales for November and December were up 20% on the previous year's exceptionally high levels, outperforming the high street by a factor of eight. High street sales grew by just 2.5%. Half of the UK population was shopping online this Christmas, spending more than 3 billion, which represented 6.8% of all UK retail sales. Stores without websites paid the price in poorer sales.

The IMRG Index reached an all time high of 1766 in November, just 57 months on from its start point of 100, in April 2000. UK online shopping sales for calendar year 2004 were valued at 14.5 billion.

cheers GF.

I told you so..........................

Evil is long of TheMutual.net

Writes his diarist Tom Winnifrith of T1ps.com

Three times a week the UK's most notorious short seller Evil Knievil chats with his faithful diarist (myself, Tom Winnifrith). As a result of our chat, I take full responsibility for writing up the Evil Knievil Diaries, a record of the trades and thoughts of the infamous Bear. What follows are an abridged version of my words in the diary of Evil Knievil from January 21st. The Evil Knievil diaries appear only on www.t1ps.com. Over the past four years the average tip given by Tom Winnifrith, the editor of the site, has outperformed the FTSE All-Share by 36%.

Diary Entry of January 21st 2004.

Margin Calls since last report - 0
Wicked bear rumours received from Lucien & other friendly scoundrels - 4
Amount Gained on the Market Since last report - 25,000 pounds
Amount won from bookmakers since last report - Nil. No bets laid

An enquiry has come in about Celebrity Big Brother. Would I consider being a contestant? The answer of course is no. The idea of not being able to trade is the stuff of nightmares. I am not sure how large the baths are in the Big Brother house but I suspect that they are as small as that provided by my miserable landlord. I am pretty sure that the Big Brother household does not have a decent cellar but I may be wrong, never having watched a programme designed only for the ignorant masses. Moreover, the suggestion that I should spend more than five minutes cooped up with a host of vulgar peasants is almost insulting. It is bad enough having a diarist who joins the great unwashed in attending football matches.

I have closed my short in Planestation (PTG). Somehow this company managed another fund-raising and so will survive. I cannot believe that it will be allowed to blow this cash as it has pissed away previous fundraisings so the downside is not exciting enough to justify keeping the short open. I see that Earthport has got around to paying the 750 pounds it owes to Baltimore, albeit in a tardy fashion. The incident encourages me in the view that Earthport's claims will fail and that Baltimore is therefore worth at least 30 pounds a share.



I see that The Times argues that investors should not sell Countrywide (CWD) because that will allow bears to close out. What complete and utter tripe. The journalist responsible is obviously the sort of ignorant cretin who would feel more at home on The Guardian where the readers are too stupid to realise what drivel is being churned out. Countrywide is financially and operationally highly geared and volumes in the housing market are slumping. Investors should sell because profits are bound to slump and the share price will too. The fact that this enriches prudent bears such as myself is irrelevant, if pleasing. However I would not be looking to close out at anything near the current 340.5p. My target price remains 100p. It is almost tempting to short News International for employing financial illiterates but Mr Murdoch's robust views on the Belgian Mafia (the EU) show that his judgement is essentially sound.

I remain short of Evolution (EVG) despite a robust trading statement. The valuation is just too rich. Rather like the company's senior management whose share option scheme is the most obscene example of getting something for nothing since the last Blair family holiday.

My diarist thinks that I am wrong to do so but I have bought 25,000 shares in Themutual.net (TMN). I see this is a lowly valued cash cow. My diarist says that there are no barriers to entry in TheMutual's sector (sending low grade junk mail with advertising) and that as such returns will at some stage start to diminish greatly and that a low rating is therefore more than justified. But what does he know? Regular readers will know that my mastery of e-commerce is only matched by my in-depth knowledge of the world of biotechnology.

I have sold another 3,000 Google. Ebay's shares slumped 18% on the very mildest of profits warnings, something that smells to me like the onset of a bear market. Bring on the gravy for old Uncle Evil. On its current ludicrous rating, if Google even puts a toe, let alone a foot, wrong, its shares will slump and I shall be there rolling in the money and revelling in my own brilliance. Further evidence of my keen intellect emerged this week as I sold another 20,000 Krispy Kreme on the news that it had appointed a new Chief Executive. I bought them back within 24 hours having made a 120 cents a share. However I retain a 40,000 short position in the shares, the Titanic of the junk food world may have changed its captain but its fate remains unchanged. $3 a share is the target price for Krispy Kreme.

cheers GF.

gf-it is not exactly a ringing endorsement but I presume long positions are unusual for him

Well worth picking a few up on the cheap and will do myself.

cheers GF. PS, actually RORO hes got more longs than shorts and as had for the last 20 month. The last one he gave me Caldwell investments went up 419% in less than 6 month.

well here's hoping for TMN and the pull back is merely the MM's shaking the tree

GF

What sort of time span are we looking at for these. I don't want to get on board if it's in excess of 6 months. I look for a start in performance normally within 12-14 weeks by which time I want to see 10 to 20%. If not I'm out. 6 months is long term for me unless the share has exceptional potential, then I'll hang on in. What do you think?

MS

Look for when results are due Mickey. That should help you. Opened a new position in Western Canadian coal today.

cheers GF.

Is that a 100:1 split on the chart, or a 100:1 consolidation? If the former, I am rich! I suspect it is the latter...

hi gf
put a few of these away in oct 04
stood still last 4 months break even at present
running out of patience about to pull the plug
whats your view

regards HUSTLER

Get shut, I thought I had posted on here I had got out the same day as the Financial Director sold 2.5% of the company and nearlly all of his holding.

The accountant selling coming up to results, doesnt smell right.

cheers GF.

thanks for that gf
i was not aware of fd selling stake
checked my source and dosen't show transaction
agree not good if correct
will watch closely
will bail out if any move downward

regards HUSTLER

They are blaming higher than expected software costs, but clearly Xmas didn't do enough to make up the shortfall.
The FD knew what he was doing when he got out.
Taking a hit on the profit warning.
Could have a knock-on for likes of DGM will now watch their results, due later this month, closely.

Well said Hawick - I work in this sector TMN are a small competitor of ours, we've long thought they are going backwards so much so that we barely recognise them as competition any more. The best prospects for shareholders would be if they are bid for, which seems relatively unlikely for the time being. They may turn things around of course but for the immediate future I'd sell.