hasta la vista ceo, page-6

Thanks for the compliment BionicBoy, but I've probably been the most incorrect. I thought this was a buy around the $4.00 mark based on the low pe, good yield, ignoring all charts lol.

The only disappointing thing for me is I strongly considered selling when it bounced back over $5.20, but spent time going through the announcements and figured it was worth holding for more than a month's trade. Got that one badly wrong. But then, except for the insiders who knocked the stock down 20% the day before the trading halt who was the know they'd try to raise 1/3 the market cap even though "everything is ok".

Anyway, now that's out of my system, logic says that if MFS does in fact CONFIRM their guidance, they SHOULD trade back close to $2. Even this would be a PE of less than 4. If in fact they go on to actually make NPAT of $275 million or more and pay a dividend of say $32 cps then they SHOULD, all things being equal, be trading at closer to $4 for a PE of still less than 8.

Hence my theory that two years of pulling their head in and achieving results might develop some trust, see a PE of somewhere between 10 and 14, which would be a SP of between $6 and $8.40 by the time the full year 2009 accounts are out.

All speculation. Who knows how long trust takes to rebuild. CIY has been on a PE of under 10 and yield of over 10% fully franked for ages, so maybe MFS will stay on a PE of 8 or less for just as long.

MJS