The group has a net tangible asset well below $35, so it would be very accretive on that basis.
If the options are exercised, they would’ve turned around their business. The share price may be $40+ and very much worth it because people are going to cap the share price around $35 for a while. A 13% dilution in earnings would reduce earnings per share, but there is still going to be plenty of earnings and dividends per share left over.
While they suspended the DRP, I may just do that manually because I’m not sure the shorters have any more ammo to offer retail punters with lower prices. In fact, they may be at risk of being stopped out if today’s trading continues a few more days.
MFG Price at posting:
$21.70 Sentiment: None Disclosure: Held
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