Takeprofits - Should be a multi from this level. I would need to re-check numbers, but based on this last announcement (and assuming no improvement in the second half earnings) then MWR is trading on effectively somewhere between 4-5x EBITDA. Now for this company that is ridiculous. I think this should be 7-8x.
2nd half is usually stronger than the first half, so I actually think the full year result will be even better (and effectively we are trading at even lower multiples).
Once full half year report comes out I can update my assessment, but I think we are still very cheap from here.
I wonder if we will see a half year dividend as well. This would signal an increase in confidence in the cash flows of the business. 1c (or even 0.5c) would be nice. However personally I would like to see them aggressively roll out the PaySchool product, or re-consider offshore expansion.
Regards
Marv
DISCLOSURE: I hold plenty of MWR.
MWR Price at posting:
$1.29 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)