I've decided to hold, which has always been my strategy here. I agree that perhaps a better ploy would be to sell, give them their chance to show the restructure is working, and then buy back in while the balance sheet is still looking poor. But that would require a level of analysis and interest in following MTS that I really don't feel like devoting my time to - looking for the first green shoots of new growth before the rest of the market picks it up.
But it's down to 2.6% of my portfolio after this news. And I do see some positive signs. The non-F&G pillars are promising, and at least management have admitted F&G has big structural problems and needs to change.
I said months ago (and several times) that the crunch point would come when retail in Australia started to pick up - if MTS picked up, it would show the problem was just cyclical, but if the decline continued, it would show it was structural.
Well, the evidence is in, and it's clearly a structural problem.
I'm certainly not buying more, even at these levels. Maybe if it drops down to the low 2s...
MTS Price at posting:
$2.85 Sentiment: None Disclosure: Held
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