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URL:  https://boards.fool.com/melbourne-it-ltd-mlb-16638107.aspx

Subject:  Melbourne IT Ltd (MLB) Date:  2/5/2002  7:26 AM
Author:  wayjo Number:  3473 of 6186

Has anyone got any thoughts on this one as it looks pretty cheap on fundamentals but I have no idea what the future of domain registries holds.

The numbers as I see it.

50m shares on issue @ 70c = $35m mkt cap
Cash in the bank = $16m
EBIT for the year over $4m and cash flow positive

So according to this you can buy one of the largest domain registry businesses for $19m or less than 5 times EBIT. That's over a 20% return if there's a future for this type of business.

A few months ago you could have effectively bought the business for nothing as the market cap = cash in the bank

I wonder what people were thinking when they paid $17 per share for this business when it was generating less than $2m EBIT. ie they were paying 400 times EBIT!!

Interested to hear your comments (has to be before the 14th though)

Regards
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