RE:RE:RE:Mood Media/Technomedia NR -St Louis Union StationPerhaps the fact the stock been has dropping in the midst of significant new contracts, streamlining of businesses, improvements in cost structure, and plans to reduce debt, indicates that the sellers
ARE NOT in step with the company and are selling more out of impatience into a market where there is little liquidity for the stock (the stock had to drop to mid 40’s to get substantial crosses done yesterday by GMP and Cormark).
Regarding TSX listing requirements (Sections 708-717 under the TSX Manual) there is
NOTHING that applies to Mood Media. The main issues addressed by the TSX in these criteria are solvency, going concern, material change in business, failure to comply with listing requirements. A low stock price does not qualify as a reason to de-list a stock! A very low market capitalization might but that certainly doesn’t apply here. So, to throw out unsubstantiated statements about de-listing shows ignorance and perhaps fear mongering. Here is a link to the TMX site:
https://tmx.complinet.com/en/display/display_main.html?rbid=2072&element_id=334
I’ve learned that the debt holders of the company tend to be the brightest and most conservative when it comes to the health of the company. That being the case, all of Mood’s outstanding debt securities trade close to par. Doesn’t sound like a problem to me. Also, Mood has indicated that it has plans to tender its convertible debentures due 10/31/15, which will be a nice debt reduction for the company worth about US$50M. A significant reduction in debt like that is likely to get the market’s attention. In May, Mood successfully renegotiated a portion of their debt with extended maturity. CFO, Tom Garrett said:
“The successful placement of this transaction was supported by strong interest from a broad cross-section of investors and we believe it demonstrates the increasing confidence the investment community has in our strategy as well as our management team’s ability to execute. Our new leadership has rapidly built a track record of execution. We are driving efficiencies, synergies and growth that we believe will build shareholder value. The new financing, with its improved terms, will strengthen our capital structure, enhance our liquidity, allow us to use non-core asset sales to address our convertible debentures and overall leverage and, ultimately position Mood to make further investments in future growth. This important milestone, which was part of the management team’s overall plan to increase Mood stakeholder value, demonstrates our continued progress executing on our operational and strategic priorities.”
This stock looks like excellent value and that should be confirmed over the course of 2014 and further into the future…
A dropping share price does not always reflect true value in a company. I worked for the Ernst Young office that did Magna's audit back in the late 80's early 90's. That company looked dead and shareholders were jumping ship like rats. Truth was that Stronach and the Board used every accounting trick there was and aggressively wrote down every asset just to give the appearance of a company on the decline. They took huge insider positions and subsequently became billionaires when the stock rose close to $100. Not saying that will happen here, but shareholders do not always make the right decision.