MYR at 40.25c is compelling value - market cap $350m. I bought - even though I am seriously underwater on my existing. Will it go lower? Maybe. Retail investors are terrified of the abyss before them and the shorts keep on selling. Today looks to me like a selling climax.
I invite skeptics to reread the 4 Feb announcement. Sales (comparable store) were down 3% and ex-Umbers anticipated 1H NPAT of $37 to 41m from the raw accounts to 30 Dec. This business is trading profitably. Non-cash goodwill writedowns are expected.
Mr Lew wants the business. He has used every means at his disposal to drive the SP down.
Yet MYR has little debt and can easily fund a dividend - even if it reports a bottom-line loss. A 2c div would imply a yield of ~10%. There are lots of divv-hunters out there sniffing around for yield - with more than $350m at hand.
1H results are to be announced 16 March. We shall see.
Ash
MYR Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
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