Tend to disagree here about Lincoln - i think they struggle with small caps because of the lack of earnings stability. Look at some of their picks just over the last month: SND - big downgrade, IFM - downgrade, OFX - big fall on back of uncertain outlook.
I hope i am proved wrong, but i think they will be caught out with MBE as well.
With $1.3m in additional expansion related costs, that is going to put real pressure on EPS growth for the half (unless they capitalise the costs). There has been some decent dilution since the PCP half as well. I think they will struggle for EPS growth, which will stuff Lincoln's metrics up.
I really like MBE medium to long term, particularly with the recent acquisitions - but I am not getting very excited about the first half results.
MBE Price at posting:
18.5¢ Sentiment: Hold Disclosure: Held
