Why Mitula Group Share Price Jumped Higher Today

What happened to the Mitula Group share price?

At time of writing, shares of Mitula Group Ltd [ASX:MUA] are up 60% to 72 cents. The Mitula Group is a leading digital classifieds group operating vertical search, portals and transaction based websites.

Why did Mitula Group shares rise?

The Mitula Group recorded a record quarterly revenue of $9.3 million in first quarter 2018. Up 17.4% over first quarter 2017. 24% of revenue was generated from advertising and transaction-based products. That’s why it’s no surprise the company had a takeover target on its back. It announced a merger with LIFULL Co. Ltd of Japan [TSE: 2120] today, sending the share price though the roof.

What now for Mitula Group Ltd?

In a world where bigger is better, the merger will create a leading global online classifieds and marketplaces group. The Mitula Group and Trovit (a LIFULL subsidiary) will operate in 63 countries around the world with 170 million visits per month. Giving customers access to more traffic and a greater range of products and services.

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The transaction is favourable for shareholders, given the 32.4-times NPAT multiple for the previous financial year. That suggests the joint entity see significant growth potential. I agree and believe as a larger entity, the merged company should be able to access more opportunities to grow shareholder wealth.

The Mitula Group and Trovit could become a billion dollar company one day.

Jason Stevenson,
Resources Analyst, Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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