Melbourne IT (MLB) hit one out of the ball park yesterday selling its Digital Brand Services business for $152m. It has now returned 77.5% for subscribers who purchased on our recommendation in December 2011.
It's DSB business protects the internet brand names of some of the world's biggest companies and generates big consulting revenues.
The sale gives the business a multiple of 16 times operational earnings, which is a much better result than expected and catapulted Melbourne IT's stock up 16%.
The question is, what to do now? Some argue Melbourne IT's crown jewels have been sold.
We are in discussions with Melbourne IT and are busy crunching the numbers. It will form part of our Technology special which comes out this time next week, and should not be missed.
Plus, today we have released a SPECIAL REPORT exclusive to paid subscribers. This will be a full review and research update on over 60 small cap companies. Join Now if you haven't already to get this and much more.