Ann: Change in substantial holding, page-16

Low quality business, tight margins, lots of competition, not the best history of execution.

BUT..As a trade set up it actually looks nice.

I think there are two reasons why MSG is valued at a ridiculously low $2m-$3m market cap.

1) is the risk the business is going under. The MD buying more stock and the positive outlook recently should help remove that perception. Hopefully he buys more. 2) is anchoring. But that one can change quickly.

Outside of the business going under the downside looks quite limited. Trading at shell value but cash flow positive.

The blue sky is if they pull off an acquisition and get some scale. That’s probably their best chance of being a 5c stock.

Thats a big if, but while we wait for that it wouldn’t be completely surprising if the market just decided it was worth $6m rather than $3m. Particularly with any good news.

I don’t think its necessarily the “cheapest stock on the ASX” but as a trade set up, it could be one of the better ones.