Ocker, I have also suffered being a previous holder of MCP while the share price went down faster than it could pay dividends, so I can identify with your comments.
However, it is now a fundamentally different company: more profitable and with reasonable profit growth likely with its focus on health and beauty and expansion into selected overseas countries.
My current valuation puts it on a forward P/E of only 8.5, which means if they can deliver a steady 5-10% annual EPS growth rate (which I think they now can), the share price has plenty of upside due to P/E expansion and profit growth. The forward grossed-up dividend yield of around 10.5% would also grow with growing profits. This turnaround was enough to entice me back in at 79c and 90c. So far, so good.
MCP Price at posting:
$1.16 Sentiment: Buy Disclosure: Held
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