acq, page-12

My thoughts...

Bit of a lack of foresight going on here since the news broke this morning. Clearly the cases were from the last year were delayed, no doubt about that (which isn't entirely the companies fault) albeit they could have been more conservative with their guidance. Surely the cases being moved into the trust were on the back of this acquisition though. It will hopefully provide a certainty of earnings vs cases which are long standing and lacking a steady income stream.

Yes, they paid themselves (take a look around the whole market re CEOs)- but I'm sure management get the msg given the share price reaction the past week post results. EBIT on MML was still positive if not for the litigation portfolio dragging the company into the red. And going forward you will not have these cases costing further funding given they are moving into a trust.

So now you've got $37m EBITDA (AUD) plus $6m EBITDA (AUD) for MML and won't have the ongoing funding of cases which was the drag. Hopefully the interest rate gets lowered- but surely this is a positive day for all holders. Track record suggests, with disbursement funding the dealmaker has executed correctly in the past when we look at MML and the growth?