Just listened to a presentation by the company's MD & CEO, Garry Crole, on the Coffee Microcaps forum.
Looks unambiguously cheap (as Gary alluded to on numerous occasions!), but I worry about the fact that the earnings quality is not quite there.
Not so much in terms of the Wealth or Professional Services divisions, but the Equity Markets division (i.e., Morrison Securities), which accounts for a full 48% of EBITDA (before corporate overheads).
Now I know that Morrison is quite a different beast to your average discount retail broker, but I would have thought there would still be some cyclicality in its earnings. So I'm trying to get a sense of to what extent Morrison has been over-earning over the past 12-18 months (that's to say, if it has been).
Any thoughts or insights on this aspect of the company would be most welcomed.
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SEQ Price at posting:
70.0¢ Sentiment: None Disclosure: Not Held
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