re: Ann: Ceasing to be a substantial holder f...
I personally thought the results were spectacular. Not really interested in what the NPAT was, there is always an impairment here or there and clever accounting tricks. Look at the cashflow-
Over the last 2 years, MCP has paid down 57 million in debt and given away a further 22m in dividends (further 10 to come). That equates to FCF of ~40mill pa over last 2 years, which is immense for a company of only 200m market cap (EV of ~255m). You can buy the shares right now for 4.9% fully franked dividend within 1 month or so (and that is the final dividend alone), the actual yield for a very robust company is in excess of 8%. Over this 2 year period, the debt/balance sheet metrics have all improved substantially. The competitive advantage in consumer goods/branding is very important, and I think with capable management, the cash-generation ability should be sustainable.
This is heavily mispriced IMO. The only thing stopping me from buying is the liquidity (I do not want to pay the spread here) and the fact that BHP is sub $38.
MCP Price at posting:
$2.84 Sentiment: LT Buy Disclosure: Not Held
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