Feeds

Dotcom share give away is virtually worthless

Themutual's £52 promise turns into £6.20

  • alert
  • submit to reddit

Build a business case: developing custom apps

British community site and ISP Themutual.net has fallen victim to the dot gone feeling in the City.

Last July the co-operative promised shares to all members as an incentive for people to join its service.

The first 1,000 to sign up were offered 10,000 shares, while the next 490,000 will get 1,000 shares. Punters were told that the 10,000 share package would be worth at least £520 on flotation, and the 1,000 package £52.

But the company's flotation flopped last week, with shares trading at 0.75 pence on the opening day. This made a batch of 10,000 shares worth just £75. Today the price was down to 0.62 pence - bringing 10,000 shares down to £62.

If you were unlucky enough to join up later and get just 1,000 shares your stake will be worth £6.20.

Simon Wajcenberg, MD of themutual.net, said the market wasn't playing fair and described themutual's current share price as "ridiculous".

Previous statements from the company promising untold riches for those signing up were "based on market conditions at the time," said Wajcenberg. "The sentiment for Internet stocks is nothing like what it was."

The stock market currently values themutual at around £200 per head - it has 117,000 members - which is "clearly an undervaluation", he said. "This is an incorrect value. The market will realise this given time - and the value will go up."

Wajcenberg said the company was seeing a 30 per cent growth rate in user uptake per month, and would be in profit within the next 12 months.

And his advice to Themutual members who rushed to sign up but are now sitting on a shareholding they would make a loss on if they tried to sell? (£6.50 of shares will cost at least £10 in selling fees)

"They've got to bear with us - this is an opportunity for the public to take a stake in a company for free," he said. "A thousand shares at today's share price is not worth a lot of money. Although they might be worth a lot in the future."

Themutual has a limit of 13 million members, who have to agree to be spammed to be eligible for their free shares. ®

Next gen security for virtualised datacentres

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.