Value

I will disclose I am not an owner of MMI, however when screening through stocks today, I noticed this share, trading at around 0.46 Price to sales ratio, an excellent indicator that MMI is undervalued first of all. As a value investor, and seemingly conservative, I decided to dig deeper around MMI.

As indicated in the accompanying financial statements, Metro increased its net worth, as accountants compute it under their conventions, to $134.0 8million at the end of FY2020, or about $0.1 per Metro share, from $129.425 million at year-end 1993. The foregoing value of $0.1 per share then must be discounted, I use the long term government bond interest rate, for a low risk discount rate (1.08%), giving us a value of $0.093. my computation of liquidated value is likely conservative, as I do not take into account appreciate of certain P & E as well as depreciation of their coal reserve, as coal becomes redundant.

if we then use a discounted cash flow calculation we arrive at a value of $0.16 using only a 30% increase in owners earnings for 3 years then settling off to a 5% increase. it is true that intrinsic value is not the be all and end all of valuation, however it is understanding that MMI is approximately 50% to 100% discount rate. I have not researched the management of the sector that MMI operates in, can you please discuss further these issues, as it is evident the company itself is undervalued.

Linus, look forward to seeing your responses.