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clock Created with Sketch. 09/06/21
14:33
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Originally posted by Chella:
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That is looking backwards. First there was a rotation out of growth to value and cyclical stock in USA. As Iron ore sitting around $200 compared to long term average around $75 or below A$ appreciated significantly. Over next 3 yrs Iron ore is supposed to drop below $100.As these impacts start to pass by over next 3 yrs , it will be a tailwind as far MFG earnings are concerned. Then consider the principal investments MFG has made over last 6 to 9 months. Expectations is 10% return over next few years. Once you add up all these positives,EPS of $3 within next 2 years is real possibility. In addition PE for MFG has been pulled back significantly over last 8 months for valid reasons. So looking forward I see MFG as safe and reliable high dividend stock with room to move up. I am not expecting it to hit sixties over next 2 years, however high fifties is real possibility.
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only negative is higher discount rate if inflation picks up around the world. It is supposed to be transitional and therefore will not move steeply.
(20min delay)