Have been scouring the ASX for the best risk reward play and this seems like it?
Have run a number of valuations on MBE and every one of them comes out with the conclusion that she's undervalued.
Balance sheet strength (especially cash), historical earnings, earnings growth, future earnings potential with the installed base growth and serviceable/addressable market.
Strong management who have led the transformation since the company's foundation, incentives aligned given large % ownership.
The downside risk is next to nothing given current valuations (market cap minus cash on hand), if it goes any lower, the company will just be snapped up at a premium (at worst, get your money back), the upside is quite strong.
No brainer value investment. Warren Buffett would be proud.
Looks like Santa has come early.
MBE Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
