Multiband Corp. (MBND)

[rrat02]

KIK, appreciate all of the work that you have done on this board. Even though MBND's stock price (on a down day in the market) is dropping after the earnings announcement I think that there were a number of positives.

1) The cash flow numbers keep going up and given a choice I'll take cash flow over "accounting earnings" every time.

2) On the CC Mandel mentioned that the debt due in 2013 has been reduced and that they have a number of financing alternatives.

3) They are using the Minneapolis area as a "trial" for the possible MDU expansion. Sales team is making many cold calls, scheduling appointments, etc. Indicated that if they are able to get a foot in the door (i.e. meet with the management/decision maker of the MDU) that they have a good shot at making a sale. If successful this is something that will be rolled out across all markets.

This is a great business especially with the relationship with Direct TV. While one might not regard it as a "moat" type business I think that there are huge barriers to entry. For the investor it is also a business that one can understand.

The biggest confusion surrounds the balance sheet. If cash flow numbers continue as is they should easily be able to earn their way through it while hopefully at the same time strategically reduce and/or refinance some of the items. In any case the balance sheet issues may very well create that "wall of worry" where many investors are afraid to buy even though the stock keeps moving up. We'll see.