investor roadshow, page-69

A PE for any company of 24 is full of Blue sky and in my opinion far to high for MHM at this stage .

Given MHM have no security on their current contract with Sims which is where their current income is derived , in my opinion an analyst worth theiur salt (no pun intended ) would be lucky to give that company a PE of 4 (remmeber the sims contract is now expired ,and has been for quite some time , is under negotiation , but bottomline it remains unsigned and under negotiation ) .


If it is signed , and the contract is for a 10 year period then a PE of 8 is justifiable

On that basis , if MHM can mae a profit of $4m next year , on a PE of 6 thats a market cap of $24m

The market cap at present is closer to $100m or 4 times this amount , so the amount of blue sky that is factored in is huge.

All just my opinion















This is a very tired market and the PE that companies are being given is de3finately lowering as expecations reduce .

I am not sure where you get the PE from , as I see the financials the asx listed company actually will make a loss