Martello Technologies Group Inc V.MTLO

Will break 20 soon!

[Ubetiam]

[Vilmerekegren]

This is the saddest company I've ever invested in. I had been waiting for more than a year to see MTLO touch my avg of 0.29. And when it did about a week ago i thought to myself should I sell now and finnaly close this chapter or should I wait. And my decision was to wait. One of the worst decisions in my life. Now I'm back down 30% and will probably have to wait another year for the new

[Acura001]

Yes I know the feeling. I sold some and invested in Solar Energy. Solar Aliance Energy. SOLR. Good price and they are up more than 100% in sales.

[jermoguy]

I thought the same thing, but there was enough differences / changes since the last earnings announcement that I thought this time would be different.  Even if we made it back to .24 or started going higher despite the drop, it would be much more palatable.  I remember looking at the screen and seeing .28 the day before the numbers came out and one of my accounts is up and the other one

[steevee84]

a lot of people got screwed bad on the two previous run ups. No surprise there is no interest. #GetProctorOut

[#chickendinner]

I would agree with your last sentence, the market is not aware of Martello's value proposition.  They have done a horrible job of making anyone aware.  They need a little sizzle on the steak and Proctor is not a sizzle kind of guy.  News releases such as the one this morning are going to do little to move the needle as Martello has had opportunities to deliver and they keep

[steevee84]

Everybody email Tracy king and use the subject line "#GetProctorOut" .. I just emailed her and tried to explain that the entire investment community surrounding MTLO is demanding a change in CEO. The more emails she gets about the #GetProctorOut movement the better !! Let them know we are displeased!!!

[#chickendinner]

After Trevor876 received a reply from Bruce Linton I sent him an email as well on Monday evening.  I have yet to receive a reply.  My email was very matter of fact.  I asked him if he still felt the same as he did when he was on the Midas Letter with Erin Crowe in Jan of this year.  He had said he expected faster rate of aquisitions, SP to be higher going in to end of year and

[PatiencePays123]

Activism is good. Maybe they should just put the company up for sale at this point.

[Trevor876]

I honestly think that is the only option. See if we can get a $.35 or $.40 price which would bring the market cap to about $120 million or 6x revenue. Don't know if Mitel would allow it though. 

[PatiencePays123]

Why would Mitel have any say? They aren't a shareholder.

[Trevor876]

True but I'm sure they have some say in how things are run there since they account for 60% of Martellos revenue. 

[PatiencePays123]

I'd be happy with 35-60 cents and hope they would be able to get an offer in that range if they tried with the market activity so hot. Has anyone asked ir or the company why they have not announced a strategic review process yet if they feel the stock is so undervalued like we do?

[Trevor876]

I know John had mentioned in an interview with Midas Letter a while back there were companies poking around for a buyout but no formal offer ever came to them. Just talk. This was before GSX. But they were also trading at $.40 before GSX now we're at $.20. Go figure. 

[jermoguy]

I wonder if those in the know, know that it is now clearly GSX that is keeping the company going as internal organic growth has stalled.

[PatiencePays123]

I think it is clear that MTLO has very in demand technology and is winning business as its recent announcements suggest. I can only imagine the type of growth it could have if it was acquired by a larger software company and had much deeper resources for growth.

[jermoguy]

Herein lies another concern for me (if I am even accurately reflecting this).  I would think the Mitel business has a lot to do with Terry Matthews involvement.  It would be good to see growth that is independent of existing close partnerships/relationships.  This is a poor example, but it's the only one my chimp brain can think of.  Suppose my daughter had a goal to sell

[JackBNimble26]

Agree. A CEO needs to be someone who drive revenue growth and product development. The challenge with choosing an ex military guy or a senior public servant is that their entire career focus has been on administration and bureaucratic implementation and spending, not revenue generation and innovation. Proctor no doubt is a nice guy building a second career after the military but its not a good fit

[Trevor876]

I agree with this. Again that is why Bruce needs to be put in place now until the search is over for a replacement. Microsoft makes the most sense to buy Martello but they wouldn't have any use for the Mitel side of the business. Microsoft could pre-bundle Gizmo with people or companies buying 365. 

[PatiencePays123]

They need to announce a strategic review process. This is all encompassing. It could involve seeing what offers exist, or what candidates are out there for CEO. I would feel like announcing this process would be a waste of time if the underlying tech wasn't strong or they weren't in a good area of IT, but that is not the case with mtlo.

[Trevor876]

Yeah I think that makes sense. Need to let people know all options are on the table. Although Mitel and Microsoft are two different businesses. GSX makes $7 million a year and Mitel makes them another $11 million. How much are these 2 different businesses worth indivdually or collectively to a special buyer? I don't know. 

[PatiencePays123]

Ultimately it shouldn't be different. They are both high margin, recurring revenue streams. They should have the same multiple. Maybe gsx a little higher multiple because it is in a faster growing segment.

[Fundmental]

Completely agree...this ain't the federal government.  Need vision, strategy and technical competence.  Proctor has none of this things. I've looked at the Martello products and they seem half baked, CTO should also be in the crosshairs.

[jermoguy]

I get what you are saying but the problem I have with this approach is this.  Isn't Proctor King's boss?  That would render her kind of powerless here.  Also, others have pointed out she hasn't responded before.  I am sure with something like this, it will not necessarily be an impetus to drive a respose.  Further, she could just filter out anything with that

[steevee84]

all valid points my friend. But she has an obligation to investors , and maybe the message will get passed along to the board members . It's worth a shot !

[jermoguy]

Agree, Stevee...even if she chooses to ignore it, she surely must know as a shareholder herself, that this is not great. I always thought that CEOs and executives should be paid primarily in stock, supplementing a small salary.  If Proctor makes 400K a year, I think that's more than the Prime Minister of Canada makes (bad example I know), more than most doctors and nurses make, more than

[JackBNimble26]

Agree. King is not the proper person to contact for the reason you cited. Any of our emails should only go to Linton and Matthews and possibly the new board member who was the founder of GSX.

[Mikeyrob]

Here is a mjor problem I see... Markets are at an all time high. MTLO sitting around its all time lows (at least close to it). When the market does correct this thing will most likely travel down with it. The leadership will blame it on market and we share holders will continue to be screwed by mismanagement. I don't what these guys can do to get it up but unfortunately I think they need