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.

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.

Took my losses on the chin--I'm out! Evil got this one very wrong-he's soon to be proved wrong on NLR. IMHO.

Thought it was time for somebody to highlight this share as its the AGM tomorrow.
I currently have a holding in TMN through their reward program and while i probably wouldn`t tell anyone to rush out and buy them i certainly would advise people that shop online to do it through themutual.net.Most people use some kind of reward card whether its a Boots card Tesco`s or Nectar,maybe your old enough to remember how popular Greenshield stamps were? so now that more and more people are shopping online doesn`t it make sense to get rewarded for it.

Rewarding people with shares in TMN gives the membership a loyalty most reward schemes don`t have.We know that the retail sector is going to struggle this Christmas but TMN should still be able to cash in because of growth in online shopping.Your not going to be rewarded a fortune overnight but you can slowly accumulate a holding at no risk to yourself and see what happens in the future.

themutual.net

From the AGM today.
Revenue in line with forecasts.

Pre-tax profit for the first 5 months is comfortably ahead of the comparable peroid.

Visitors to website have increased by over 110%

New member acquisition now rising by over 40,000 each month.

Sale of all the companys interest on QXL ricardo plc realising an exceptional after tax profit of over 300,000.

11 November 2005
themutual.net plc
Acquisition & Appointment of Director
themutual.net plc ("TMN"), the online media owner specialising in direct email
marketing and rewarded shopping portals, is pleased to announce the acquisition
of the entire issued share capital of Electronic Direct Response plc ("EDR"),
the email marketing company (the "Acquisition", creating the "Enlarged Group"),
for an initial consideration of £2.0 million in cash and the issue of 7,843,137
new ordinary shares of 0.01p each in TMN ("Initial Consideration Shares").
Highlights
* Creating one of the largest online direct marketing specialists in the UK

* Operating in the rapidly growing online advertising market

* Core services include email sales, advertising planning and buying and
delivery solutions

* Access to over 6.5 million email addresses

* More than 500 advertising clients

* Increased strength and depth of management

* Earnings enhancing

Mark Smith, CEO, said,
"The Acquisition allows us to operate at an entirely new level, offering a full
service solution to our clients and with increased market share in an exciting
and expanding market place, creating one of the UK's largest online direct
marketing specialists. It is expected that the Acquisition will be earnings per
share enhancing in the first year following the completion of the Acquisition.
The two companies bring together hundreds of clients, increased cross-promotion
and sales opportunities and an expanded suite of online advertising products
and services. We look to the future with great enthusiasm."
The initial payment of £2 million will be funded from existing cash resources.
In addition to the initial cash payment and Initial Consideration Shares, the
total consideration includes deferred consideration of £0.6 million ("Deferred
Consideration"), payable in cash in three equal instalments of £200,000 each on
31 May 2006, 31 May 2007 and 31 May 2008. There is also further deferred
consideration, contingent on the future profitability of the Enlarged Group
("Contingent Consideration"), of up to £0.1 million in cash and up to 1,960,785
shares in TMN ("Contingent Shares"). The Contingent Consideration is dependent
on the future profitability of the Enlarged Group for the years ended 30 April
2007 and 30 April 2008 and is payable following publication of the Enlarged
Group's audited annual accounts.
TMN is also granting options exercisable at nominal value ("Options") to key
EDR staff amounting to 196,078 Shares on 31 May 2006 and up to a further
980,392 Shares dependent on the profitability of the Enlarged Group for the
years ended 30 April 2007 and 30 April 2008.
Assuming full issue of the Contingent Shares and full exercise of the Options,
the EDR vendors will own approximately 19.0 per cent. of the share capital of
TMN and the Option holders will own approximately 2.3 per cent. of the share
capital of TMN.
Completion of the Acquisition ("Completion") is conditional upon the
re-registration of EDR as a private limited company and the admission to
trading on AIM of the Initial Consideration Shares. Application for the
admission of the Initial Consideration Shares has been applied for and is
expected to take place on 14 November 2005 (provided that the re-registration
occurs today as expected).
James Morris, the founder of and largest shareholder in EDR who beneficially
owns 45 per cent. of EDR's share capital, has agreed not to dispose of his
Initial Consideration Shares in TMN for a period of at least six months
following Completion and all EDR shareholders with holdings in excess of 1 per
cent. have agreed to an orderly market provision for a period of at least 12
months following Completion. James Morris has also been appointed to the Board
of TMN effective from Completion. Further information regarding James Morris
and his service agreement is included below.
For the year ended 31 March 2005 EDR reported turnover of £3.4 million, gross
profit of £1.1 million and profits before tax of £34,000. For the 6 month
period ended 30 September 2005, un-audited management accounts showed turnover
of £2.9 million, gross profit of £0.9 million and profits before tax of £
288,000.
On Completion EDR is expected to have net assets of at least £0.4 million with
not less than £0.4 million in cash. Any shortfall below this amount will
results in a corresponding equal adjustment to the initial cash consideration.
EDR was established in 2000 to offer full services in email broadcast, sales
and delivery. Acting as a sales house and marketing agency for a number of
established clients, the business also has access to over 5 million names
across its managed and owned databases.
The Enlarged Group now has access to in excess of 6.5 million email addresses
and offers a complete range of high quality online marketing services to its
base of over 500 clients. Core services include email sales for the owned
databases, planning and buying for email based advertisers, delivery solutions
and further focus on the reward programmes, which continue to grow apace, as
the largest online reward sites in the UK.
With the strengthened management, technology and resource at the company's
disposal, the Enlarged Group intends to capitalise on its position as one of
the largest email marketing specialists in the UK by providing a complete
solution for all online marketeers and continue to exploit opportunities in the
rapidly growing online advertising market.
James Morris has agreed to act as an executive director of TMN pursuant to a
service agreement to be entered into on Completion. Under this service
agreement, he will be required to work full time until 31 December 2005 on a
basic salary of £100,000 per annum. From 1 January 2006 to 31 March 2006 he
will be on sabbatical during which time he will receive a basic salary of £
50,000 per annum. Thereafter, James will be required to work an equivalent of
80 business days per annum, subject to holiday entitlement, for a basic salary
of £40,000 per annum. The service agreement may be terminated by either party
giving 6 months' written notice.
The following information is given in respect of the appointment of James
Morris as a director of TMN (with effect from Completion), as required by
Schedule 2 paragraph (g) of the AIM Rules:
Full name:
James Alexander Morris
Age:
36
Current Directorships:
Electronic Direct Response Plc
Mimo Enterprises Ltd
Previous Directorships:
None
No further disclosures are required in relation to James Morris under Schedule
2 paragraph (g) of the AIM rules
Contacts:
themutual.net plc
Mark Smith, Chief Executive
Tel: 020 7440 9310
END

themutual.net PLC

goldfinger - 21 Feb 2005 14:04 - 32 of 39
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.



LOL...yeah right...what a ramp at the top that was in Januray mate...

wanna buy a flyer then buy some FIB and get Jam very soon not tomorrow

I know no one is really interested in this share and i wouldn`t encourage anyone to buy them but i thought it was worth a mention today on the back of yesterdays decent results and the 11% rise so far today.
Get shopping you really can get something for nothing it may take you a while though.
DB66

There has been some quite large volumes going through the last couple of days which have resulted in a decent rise in the SP.
I am not generally a fan of internet stocks but online shopping and advertising is a growth sector and has a long way to go in my opinion,besides these shares were for nothing ! maybe you should give it a go,what have you got to lose?
DB66