When is the Metcash roller coaster going to end.... i would say pretty soon....
mettcash increased over 8% on wednesday on the back of the speculation that WOW will sell MTT their wholesale business...well is the wholesale business worth 8% of a company....well certainly not to MTT....
WOW wholesale business comprised 3.3% of all of WOW revenue for 2001 which when calculated comprised of $70.6 million in revenue for MTT.... however this may seem like a lot it is not in comparison to MTT $5 billion in revenue for 2001.....and not only that, the WOW wholesale business had a ROS of 0.7% which when calculated comes down to.....$0.49 million.....and even if you think that MTT may be able to synergise the wholesale operations and get better margins i sincerely doubt it.....
MTT in 2001 reported an average profit margin of 0.7% to report an $32.7 million dollar profit from 5 billion in sales.......you decide if $0.49 million in profit is worth $140 in market capitalisation?????
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