Trawling the sea bed and hopefully not about to drop off the...

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barny

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05/12/14

11:46

Post #: 14414166
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Originally posted by Wombat2 ↑

Hi Pardner
Your questions are valid but if you look at the last 12 months the SP has been going in one direction and recent low oil and gas price predictions are not helping MRMs SP at all. Much of the recent price drop is possibly panic selling from investors who have decided to exit the energy space and who can blame them. Your comments on service pricing being locked in for relatively long periods is correct and that will help underpin the F15 result.

So where to from here ...well it would help enormously if we had strong predictions from management as to the F15 result but I am yet to see it. Please someone advise me if they have put out a F15 profit range.

I have seen some interesting information published by Macquarie Bank on 19 November where they fcast NPAT of $81m which I hope is very conservative.

Some other stats they forecast are:
NPAT $81m and EPS of 21.5c
Cash Flow $146.6m or 38.9cps
Dividend 13cps FF which equates to DY of 9.66% or 13.8% with Franking Credits
(The above dividend information is based on current SP of $1.345)
Debt to Equity dropping from 36% to 31%
They have a Valuation of $2.15 to $2.48
Main catalyst are ongoing contract wins and successful integration of Jaya

When I looked at the 2014 figures for MRM and Jaya I thought that the NPAT should be higher than $81m so I hope it is extremely conservative. All in all MRM looks like it is 37% undervalued at current SP vs Macquarie Target SP. My own view is that MB is correct (in the absence of target NPAT range from MRM) and that MRM is a screaming buy but it is not for the feint hearted and unfortunately remains high risk until we see the H1 results in early Feb. We should take heart that directors were buying around $1.65 recently and in reasonable volumes.
Chrs W2
PS I believe the members at Team Invest are very excited at these prices and buying in again.

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Trawling the sea bed and hopefully not about to drop off the shelf into the deep abyss. I'm in but nervous. Appear extremely cheap at this level but need some firm guidance on the future currently have great yield at these prices. Tempting to buy more

MRM Price at posting: $1.32 Sentiment: None Disclosure: Not Held
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Trawling the sea bed and hopefully not about to drop off the...

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