Been on the sidelines waiting for the stock for a long while.
Its a 'buffett' type company, just look at its last 10 years earnings. Consistent slow grower over time. Time to buy is when there are cyclical factors that could cause profit to drop in the short term. The market then concentrates on the short term issues, rather than the underlying business model and its consistency.
But i use the '10 year factor', ie will this business be around in 10 years time, will MTS's services still be required in 10 years.
At $3.35 i get the dividend plus franking which reduces my cost base to around $3.2 This will provide me with an income stream of 7-8% fully franked dividends + slow growth over time, say 5%.
MTS Price at posting:
$3.38 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)