re: Ann: MCP Announces Completion of Equity R...
Hi Ocker,
Fair enough and a well reasoned position.
I am personally taking the opposite view based on MCP's track record of buying synergistic "bolt on" businesses and adding efficiencies through their supply chain, logistics, sales and marketing and administration functions.
I personally like their strategy to diversify away from the parts of the business that are coming under pressure from Supermarket bullies and their 'home brands'.
I recognise your point that this is a move into a distinctly different area than they have traditionally operated but I do see the synergies into cooking appliances given their tableware and cooking utensils businesses and cross selling potential.
If my household is anything to go by (where Food TV is the only thing watched and I am relegated to trawling HC !!) then people are becoming more discerning foodies and likely to desire more up-market kitchen tools... just IMO.
Regardless, MCP has been a solid dividend performer over the years and I like it for the implied 20c dividend or 8.9% yield.
Cheers John
MCP Price at posting:
$2.24 Sentiment: None Disclosure: Held
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