I agree and disagree. I have a slightly different take on my investment in Mint.

This is speculation on my part, but the way I see where Mint is trying to get to is a payroll number well in excess of 1 mil. I've mentioned this a number of times and I still stick to it in the belief that economy of size is the key for this type of business.


Mint is no different than so many other stories where growth is achieved through acquisition/financing. It's a proven methodology. What's also been proven is that these types of stocks will receive a huge premium in price as long as the 'story' or growth trajectory is intact. Netflix comes to mine as an example pre July/2011.


As for MIT, we've clearly hit a bump or a wall, whichever you prefer, in this narrative. A year from now, we may have a better understanding of what really transpired during this period. But for now, I'm of the view that Egypt is a problem. Less so of the political situation, but rather that it may have been an unexpected opportunity that caught the attention of management that ended up taking up too much of the 'limited' resources both in capital and manpower.


Going forward and to answer your question, get used to seeing things in EBITDA positive terms as management tries to show progress. As for free cash flow, I'm not expecting a lot on this for a while. In all fairness, I think it's appropriate to use the EBITDA yardstick as that is the most appropriate means of measurement for a growth based company. The question in the short term will be how they plan to finance the additional growth in payrolls. This is why I'm so peeved that they've had this delay in loading 400k for which we've already paid+12%+bonus shares on. If management can't grow the payroll numbers, I'll be seriously rethinking my investment in Mint. I'm pretty sure I'll not be the only one. GLTA