Brett Smith has been buying, so I’d say unlikely we will have any negative surprises coming up. Stands to reason that the sell-off and current cap on the stock is mostly due to a major holder trimming his position. I cannot remember Old Peak’s entry price but I think it was sub 10c. So even exiting at these levels they’re making a tidy return.
A lot will depend on management’s decision how to deploy the cash being produced. Seems that until the Rentails review is completed by end of this year, there will not be any capital return. One can only hope that meanwhile getting into the higher grade areas will generate some increased earnings from 2H onwards and a better sentiment towards the stock.
MLX Price at posting:
47.3¢ Sentiment: Buy Disclosure: Held
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