forget your charts

Macmahon has a great chart for the last 2 months, its going higher. That's a no-brainer. Three steps forward and one step back. Yes we will see it retrace at some stage, nothing goes up and keeps going up but the great thing with Macmahon is that it is going up ever so slowly compared to other stocks that are flying.

Just remember one thing. Before the GFC and slip up with regard to managing a contract and all the abnormal expenses of 2009, Macmahon was on a train for growth. It hit a brick wall but is now climbing over it. It was wounded but is now heeling.

Check out last years 2008 Annual Review (pp.2 & 3) and assess for yourselves the performance of Macmahon over the last 5 years. It was on a journey of growth, growth, growth and now the company has put into place systems to ensure the growth of previous years.

They have implemented a new system to manage their operations and I can assure you that they are already enjoying greater efficiencies.

Sometimes companies make mistakes and its how they deal with them that sets them apart from the rest.

The company is a cash cow.......apart from last year, the net operating cash flows have increased nearly every year for the last 5 years. EBITDA, EBIT, NPAT, Revenue, order book, you name it it was all on the increase until the GFC hit us.

It has $nil net debt as well.

You have to hand it to the CEO Nick Bowen, he has done well since his appointment in 2000 and the addition of the ex-CEO of Bifinger Berger Australia can only strengthen Macmahons position, balance sheet, earnings and ultimately its share price.

So, in conclusion to the chartists, its all crap IMO. If a company is a business such as Macmahon is, then the chart is irrelevant, the rest will take care of itself.

Someone said in this forum a while ago that the share market is a mechanism for the patient and impatient. This is so true.