I took a small loss and exited my entire position (except for tiny holding in case of attractive future capital raising).
Reasons: (a) Coles/safeway reporting increased profits, yet metcash decreasing (b) most important for me, there is a 2-3year turnaround project in place. Significant increase in capital expenditure, but will it work? better to come back in a couple of years time when earnings/cashflow will be depressed because of expenditure and access it then. (c) This stock is not even a dividend play anymore. At 60% payout I forecast DPS to be around 16c. At current market price of $2.85 a 5.6% yield with uncertain future earnings does not cut it for me.
Happy to sit on the sidelines
MTS Price at posting:
$2.81 Sentiment: None Disclosure: Not Held
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