Jabbar22 the article by OSK Research on MTQ is very interesting...

Jabbar22 the article by OSK Research on MTQ is very interesting with nothing but positive comments about NMS situation and their position going forward, just the opposite to BDO's report. OSK clearly state that MTQ have got a real bargain with a debt free company purchased at 31% discount on the net asset value and only 6.6% premium over their tangible book value.They state that this is a very attractive entry point.
They consider there is potential to cut NMS cost by up to 10% through synergies on operational and administration side. OSK state "Neptune may be able to deliver a short-term earnings boost by cutting duplicated costs like Board expenses and other shared corporate costs. However, to err on the safe side we have assumed breakeven profits in Neptune until further clarity emerges. These provide a large potential upside to our earnings estimates – should Neptune manage to cut operational costs by 10%, MTQ’s bottom line would go up by about 16.6%."

A 16.6% boost for a measily 3.2c a share. Bargin basement prices and NMS directors recruited BDO rather than PWCoopers and recommended sell. They must have been able to see these potential savings themselves if they had any business nouse. BDO identified a sustainable profit going forward of only $3million. PWC identified potential improvements to EBIT of $13.5million which is along the same track as OSK.

Shareholders have been taken for a big ride on this one and the thing that irks me is that the directors and senior management will get off scot free with cash in their pockets.

It will be interesting to observe how MTQ go about getting their portfolio to 90% especially if s/holders hang on to their shares.