Hah! You had me in stitches. My wife actually came up to ask what I was laughing about. I told her I just bought into falling-knife Magellan, and she wasn't impressed. She urinated on me, and walked off. Not so different to Tassals, to be fair.
Hit me up on Twittter if you're there.
@Chella They're pretty wide valuations, and I think that reflects the range of potential outcomes here. I find it really hard to guage what an appropriate PE ratio for Magellan should be: if it declines, it'll drop to 10-12 probably; if it grows <5%, it may be around 12-15 in normal periods; if it can grow at 5% and meet their 9% target, then 18-20 is reasonable. But I think the argument that based on forecast FY22 PE is ~15 makes it cheap, hmm not sure that washes with me. I like to think of this as one of those Peter Lynch 'stalwarts', and hopefully you're getting a quality business.
Also the current dividend yield is fixed at the time you buy the stock. If the share prices rushes to $40, $50 or more tomorrow.. I still get my 6.4% I locked in today. Hopefully, they grow their dividend. And if they grow that dividend at 3.6% p/a, I'll get my 10% IRR. Again, not a very high hurdle. Though, that's how it always starts with value traps...
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Last
$9.00 |
Change
-0.020(0.22%) |
Mkt cap ! $1.623B |
Open | High | Low | Value | Volume |
$9.01 | $9.07 | $8.91 | $4.153M | 461.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 2839 | $8.99 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$9.02 | 7991 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 358 | 8.990 |
1 | 10 | 8.930 |
2 | 10200 | 8.900 |
3 | 568 | 8.880 |
3 | 5479 | 8.850 |
Price($) | Vol. | No. |
---|---|---|
9.050 | 1500 | 1 |
9.090 | 110 | 1 |
9.180 | 60 | 1 |
9.200 | 1848 | 3 |
9.250 | 717 | 1 |
Last trade - 16.10pm 06/09/2024 (20 minute delay) ? |
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MFG (ASX) Chart |