Subscriber Discussion

Monitronics- Moni, Name Change To Brinks Home Security:

The newest name for Moni aka Monitronics is… “Brink’s Home Security”.

The new name will camouflage the appearance, but not the smell. The name was also changed two years ago from Monitronics to “Moni”, but it did not halt the steep slide.  All new top management did not halt the slide either. This stock, traded as ASCMA, has slipped from $88.50 (Dec 2013) to $6.22 (Feb 2018).

It will still smell rotten for those investors and analysts who understand the cause of the slide.  Debt, attrition, broken business model. Their magic wand is broken too.   

Remember, their problem is imbedded in the original 1,000,000 monitored customers, their primary source of revenue, not the several thousand new customers and shiny new toys.  If this was a new company with the new business model, the name Brinks would be pure gold, but not when it is used as a tourniquet. Source: Lee Jones; Support Services Group; leessg@att.net

What is your opinion? What do you think about the name change?

 

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This stock, traded as ASCMA, has slipped from $88.50 (Dec 2013) to $6.22 (Feb 2018).

I don't follow intrusion companies that closely so at first I was surprised to see that but the stock chart below shows exactly that:

Why did the stock drop 90%+? 

As for the name change, again not close enough to the space, but I found it weird. 'MONI' is actually a solid generic corporate name, sort of like Vivint but I don't think Vivint is switching back to APX Alarm....

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The press release estimates it will cost them $5 million per year to license the 'Brinks Home Security' brand:

MONI expects to pay first-year royalties of approximately $5 million. 

Branding is important, especially for the residential trust game (see: Honeywell 17x More Recognized Than Axis Among Consumers) but I just don't think 'Brinks' is particularly recognized now.

Indeed, startups forging their own brands from nothing like Ring now are purchased in billion-dollar deals, and they weren't even around last time Brinks was a thing in residential security. 

I just don't see the name being the magic missing piece they need.

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I saw this on LinkedIn as well, and posted this;

"Do people really care about a name or brand when looking for home security? Maybe it's because I'm just a technician, and I've worked for a few companies so I know at the back end, it's really all the same. Panel sends signal to monitoring center, monitoring center deals with alarm.

Seems like an expensive gamble, and maybe I'm missing something, will bringing back an old name/brand help them gain more customers?"

I know in my area ADT was the largest home security company for a time, but then a local company made some local acquisitions and were larger. As far as I know they are still larger.

When I look in my cities subreddit, you get the odd posts asking about home security, and people are quick to name the big name in my city, but then also quick to show how these other small guys are cheaper.

Again, knowing that the back end of monitored alarm systems is basically the same, price would drive my choice. Obviously if your name has a really bad reputation you'd want to fix that, but to pay that kind of money for an old brand name just doesn't make sense to me.

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