Firstly, I know there is an existing thread but nobody as hardly used it for the last 6 months so I hope you dont mind this new one. Historic details can be transfered here.

Having had a look at this one in depth recently I cant help but feel its fallen back far too much on talk of regulatory pressures within the industry. There comes a point when a fall takes a company back into value territory and I beleive this is the case here.

The forward P/E is only a derd cheap 11 to 31st of Dec 2006, and this falls again to 10 for the following year. The PEG ratio is 0.3 which bodes well and there are forecasts for a 40% increase in earnings per share to the year end.

Its a global name and world leader. The directors of the company have been buying big time in the last few weeks and most purchases were less than the SP NOW.

I will post the recent comment from Citywire below....

Published: 12:29 Tuesday 25 April 2006
By Graeme Dickson, Head of Research Simple CFDs: www.simplecfds.co.uk

Monster Opportunity.

While the last few months have provided some highly profitable trading opportunities within the FTSE 350 arena, ignoring the smaller cap stocks could be detrimental to the overall performance of your CFD portfolio.

In certain instances, a limited number of small cap stocks can give a welcome boost to your CFD portfolio, especially in flat market conditions.
Such stocks will tend to move up and down on its own merits rather than at the mercy of the markets, a trait which is often associated with mid to large cap companies that are sensitive to movements in, for example, the US futures, exchange rates and/or energy prices.

A smaller company share that trades on the AIM market and might be worth indulging in is Monstermob . The company supplies content to mobile phone users, such as downloading games or ring tones and has a strong presence in China, South East Asia, the US and the UK. Over the last twelve months, Monstermob has been on the acquisition trail, which has recently culminated in its purchase of Chinese firm W-Infinity for $81.5 million (45 million ), which is claimed to be earnings enhancing for the current financial year.

The deal should initially be non-dilutive to existing shareholders, as it has been financed by a mixture of cash and loan notes. China is estimated to be the world's largest telecoms market with an approximate 335 million mobile phone users in the country.

The stock is trading on a 2006 multiple of about 11 falling to just above 10 for 2007. This seems a harsh rating for a company, which is expected to grow earnings per share by 33% this year.

Monstermob received a vote of confidence from its directors after three executives bought an aggregate total of 100,000 shares at 319p, while the chairman Hans Snook, the former boss of Orange, bought 50,000 worth at 321p. The size of your position should be commensurate with the risk and therefore modest long positions should be considered at market with a stop loss based on a close below 220p. If the stock closes above 300p add to your position.

Please DYOR.

Cheers GF.

LOL They were cheap at 50p when I bought in.

Yup they were but as time goes on they are still cheap at a P/E of just 11.

Well done zscrooge for your timely buy and profit.

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 1
Sell 0
Strong Sell 0

Total 3

Is that a double bottom forming on the chart?, could be good news if it is.

Q. What is a double bottom? And why is this good?

Exactly Tonker. Im no TA expert so id also like to know. Usually do my stock picking through fundies. I think ive heard a double bottom is a good thing because investors are given a second chance to get in at the bottom, something like that.

cheers GF.

gf

no expert either, but double or triple bottoms are considered bullish, although I'm not too sure the recent activity on the chart qualifies. Actaully this chart looks pretty dreadful, the MAs are showing little sign of halting their downward trend and if this level is broken there would not appear to be much to stop it until 225.

pth

Cheers PTH. Cant really see it dropping to 225 as that would put it on a ludicrously low P/E. At some stage the Instiutions are going to turn positive and buy in big time. Not sure that its that far off now.

cheers GF.

A little pissed with these as I bought at 315p and they are well down from that.

Have to say though for the first time in years I have averaged down on a stock and added a lot more. ( I dont like the practice)

The long term story is compelling as far as I can see.

50 quid a share when I retire........ I hope so.

Bought some more today at 2.35. Hate averaging down also goldfinger but this price just looks daft to me. I will have some more at 2.00 God forbid !!

all the best

capa

Reading GF's heading (Now Looks Far Too Cheap) they centainly do now !!

whats going on here....Great results and prospects MMS to sell greater than MMS to buy yet the sp keeps falling....doesnt add up ........ insider trading ?

Im as confused as you G but in markets like we have at present nothing suprises me.

I think this one as traditionally carried a lot of punters on credit terms (cfds by and large) so over the last few days margin calls plus stop losses would have been rife.

I beleive it offers incredible long term value at its present price. Lets face it , its not like 2000 when tech shares were trading on earnings multiples well north of 50 etc or hadnt even made a profit.

Ive added again this morning.

cheers GF

Just look at the forecast figures to Dec 2006, yes 2006.......

31-Dec-06 93.57 23.44 27.37p 8.6 0.2 +40%

A forward P/E of just a miserly 8.6 for a profitable world market leading tech share, and earnings per share growth of 40% , IS THE WORLD GOING MAD.

Well at least it finished blue.

Brokers Recommendation...

Investec has a good track record on MOB analysis and forecasts. Their most recent note (Jan 06) following Mdream acquisition states:
Recommendation - Monstermob is trading on 12.8x Dec.06 fully diluted EPS, more than a 40% discount to the global peer average of 22x. Given its global strategic leadership, strong earnings growth (+45% 3-year CAGR) and increasing leverage to the significant growth prospects of emerging markets (e.g. China is c40% of FY.06 EBITDA) we believe a global multiple of c20x Dec.06 earnings is more than justifiable. This implies a target price in excess of 550p...We are raising our PBTA figures by 6% to 24.3m in FY06 and ... our normalised EPS on a fully diluted basis by 2.7% to 30.5p in FY06"

Just topped up again...This really is stealing the company for cheap.

I note we won the Eorovision song contest aswell, he he.

Serious now, yup its looking way oversold and is trading so cheap.

cheers GF.

Sold a couple of my tranches. This is looking rather serious now ........meaning the state of the overall market. In times like this you just cant beat the market and it may pay to come back and look at these at a later date.

Have to agree there gf, price fell below that of 12 months and markets are a bloodbath at the moment. A change in sentiment would surely see MOB recoup a significant percentage of its value lost over the past 8 days? It is absurdly cheap but calling the bottom is proving to be expensive for all of us. DOW is currently down 97 but will be interesting to see if the decline continues tomorrow.