"1. Is there a margin of safety at the current level? I think not, the only way to get see a decent MoS is to use a very low required rate of return and optimistic forecasts. The valuation to the right is from the excellent MyClime service. To get a decent MoS I had to use a ROE of 50% and required return of 11%.
2. True value investors don?t forecast. Basing analysis on what analysts forecast is appropriate for growth investors not value investors. Analysts in general are over-optimistic in the long run.
3.Surely you can find a better MoS else where. If not there is nothing wrong with holding cash and it gives a decent return and the option of buying when bargains do appear. ..."
MCE Price at posting:
$8.17 Sentiment: None Disclosure: Not Held
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