MPL - Thoughts ?, page-71

"Wow, what an incredibly arrogant post."

In fact it was a reply to Inception who claimed I had no idea of valuing stocks.

The reality is that many of the people on HC are inexperienced speculators who buy one penny dreadful after another based on reading tea leaves (charts) or the opinions of other HC posters. They don't know what they are doing.

I have not read one independent financial expert who thinks MPL is a great investment. A few said that MPL might be a reasonable buy at around $1.60. [The banks are probably a far better bet if you just want a dividend.]

If interest rates rise substantially companies like MPL will lose out as people move back into zero risk term deposits.

Putting aside the hype there is no logical reason why anyone would buy MPL. It isn't a growth stock. it isn't a value stock. It isn't an income stock. It isn't a turnaround.The risk-reward is totally out of kilter.

MPL has a P/E is 23 The P/B is 4.2. Health insurance is a very low margin, very competitive and highly regulated industry. MPL won't be allowed to put up premiums, take risks with capital or undertake M&A..The only way to increase earnings is by cutting costs which will be extremely difficult. Those are the facts. Comparing MPL to past floats like CBA ior CSL s pure nonsense.