Ask yrself: Is $4 good value buying for a stk with flat earnings/zero or near zero growth?
As a LT hold (which is what it is for me - almost 5 years now) it's been a decent stock. Good defensive stock and better interest than I'm getting from the banks.
The price is basically unchanged in that time too, which is more than you can say for BHP, the banks, Telstra, or just about any other blue chip you care to name, which are all down. It's the most stable stock I've held and it keeps pumping out decent divs.
If you're looking for that sort of stock for a part of your portfolio or a SMSF or whatever, I think it's a decent buy. Earnings growth can remain near zero for a few years as far as I care, as long as the 7% dividends keep coming.
But the problem is you have to keep an eye out for earnings growth to go negative, which is possible with all this price war nonsense. If that happens, or if there are signs of a div cut, I will be out. But otherwise, if the economy gradually picks up and MTS can maintain even low single digit earnings growth (which is their current guidance) then I'm all for it.
But anyone looking for ST earnings growth... probably not the star galloper in your stable.
MTS Price at posting:
$3.98 Sentiment: Hold Disclosure: Held
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