Martello Technologies Group Inc V.MTLO

A Year of Learning & Growth at Martello

[PatiencePays123]

https://martellotech.com/blog/a-year-of-learning-growth-at-martello/?utm_sq=glsntjixkq&utm_source=twitter&utm_medium=social&utm_content=web-blog-others

[canyousayiii]

What a confusing opening paragraph. I think they tried to say something profound but it just doesn't make sense. 20/20 after completing the eye exam is exactly what they did with this writeup - did a hindsight ofbwhat happened in 2020. Then we wonder about things.

[PatiencePays123]

The tech IPO market has been very hot. Someone should acquire mtlo at 6-7x revenue and then ipo it two months later at 10x+ lol.

[canyousayiii]

Someone acquires this thing, rolls it into a compaby with its own CEO and board, and voila, $1 million in cold hard cash saved right there annually.

[PatiencePays123]

At some point the Board has to consider alternatives to enhance shareholder value with the equity valuation so depressed versus other software companies. I've emailed Bruce a few times and he has not responded to this point. Which could mean there are matters happening behind the scenes, I sure hope.

[Hertevald]

Why would anyone buy Martello at 6-7x revenue? Martello bought GSX at less than 3x revenue. Anybody else who wanted GSX could easily have outbid Martello, say for $20 million.

[PatiencePays123]

A strategic would pay that multiple handily in this climate. I would guess that Terry had a big influence in acquiring gsx for the multiple they were able to earlier this year. That is an example I think where having a very name brand board comes in handy.

[Hertevald]

One thing they missed in the year of Achievement is: Dec 18 - 3rd anniversary of the hiring of John Proctor as CEO.

[JackBNimble26]

Three years as CEO and he owns zero shares? I asked 5iresearch for their thoughts on a CEO of a company owning zero shares...their response is as follows: "It is a very fair question. Insiders as a group own nearly 20%, and have been buyers. But the top man needs to set a better example. We do not have a reason for this, however, but will raise the issue. "

[PatiencePays123]

What has 5i been saying about MTLO? Can you post their last few Q&As about the company?

[JackBNimble26]

they have really not changed their position for a long time. Like the quality of the senior board members  and consider it as high risk. But you saw from my earlier post, a CEO should be a shareholder. I wonder who will answer their forthcoming call?

[PatiencePays123]

My biggest issue with the current ceo is he obviously does not understand capital markets which is 50% of the required role as ceo. talking to investors, presenting, sharing the story, timing news and catalysts, focusing on the stock, and so on, with the other 50% tied to delegation and executing. too many mistakes have been made by this ceo to recover from. we need a new captain. Martello is no

[canyousayiii]

I wouldn't want a new CEO studying what the current CEO has been doing and learning from his mistakes. I would like a CEO who would grasp the current product strenghts, have a vision including additional products/services and execute. Ideally it would be someone with a proven track record of success in high tech industry, but I imagine the real achievers have something on the go already and

[PatiencePays123]

I found it interesting that in the conference presentation the ceo did last week there was barely any mention of the mitel business and majority of focus on microsoft. why doesnt mitel just buy this piece from martello and crystalize some value for us shareholders if it is not a focus of the company growth plans anymore? it would give the company a cash infusion to use to acquire something else

[canyousayiii]

Not sure why you think Mitel should buy that piece to crystalize OUR value. If Mitek stuff is not going to grow and go via Elfiq route after the current contracts expire, then what we have in MTLO is a high tech wannabe throwing darts. We could then do better by printing a list of Nasdaq stocks and throwing our own darts. At least then we could not be upset with what we see in how management runs

[PatiencePays123]

Well if it isn't being valued properly in the marketplace, why not crystallize value with a sale? I've seen asset or division sales in stocks many times, where something is not valued fairly in the market, they sell it for cash and then the rest of the business has a benchmark valuation to be valued from. Stocks typically go up in these instances.

[Fundmental]

Why would Mitel buy something when they don't have any development costs and reap the reward of a higher tier sale with their customers? Seems silly to bring that cost in house when it's not their core offering.

[PatiencePays123]

Hmm that is a good point, but with everyone moving to the cloud this seems like a logical step in Mitels evolution. They will eventually need the type of analytics mtlo provides their customers for all of their product lines. Seems like a strategic fit in my eyes.

[Fundmental]

Mitels business is voice/uc...analytics are an operational cost.  Today they pass that on to the partners and customers.  Don't see a scenario where Mitel will take on that cost unless their is some sale of mtlo. Mitel uses a bunch of other tools to ensure there customers are up an running and mtlo isn't a necessary tool...