Interested in peoples thoughts.I can certainly see the risk in...

Interested in peoples thoughts.

I can certainly see the risk in the retailers reducing shelf space and undercutting on private label brands and how this will progressively eat into MCP's market.

However I can also see a lot of value in MCP's logistics chains, warehouse/ distribution efficiency, product sourcing and sales force.

The recent Cosmex acquisition is a good example. A small distributor with $16m sales and struggling. MCP able to buy on a circa PE of 2-3 (i.e. $5.8m price for a FY13 EBIT contribution of $2.5m - $3m.)

I see lots of opportunities for MCP to add bolt on distributorships, etc into its business and then use its economies of scale to drive profit from these add-on businesses.

When I look at the range of products MCP sells it is far from reliant on just Coles and Woollies.

Notably 2H2012 was worse than 1H2012 judging by announcements but MCP is priced for destruction IMO.

Worth considering buying if the share price remains weak.

This is the third time I have bought into MCP in a decade. First was 2001 - 2003 for a 5x gain. The second was 2009 for an 8x gain and now just looking for a good stable 8-10% dividend.

Cheers
John