A PE for any company of 24 is full of Blue sky and in my opinion far to high for MHM at this stage .
Given MHM have no security on their current contract with Sims which is where their current income is derived , in my opinion an analyst worth theiur salt (no pun intended ) would be lucky to give that company a PE of 4 (remmeber the sims contract is now expired ,and has been for quite some time , is under negotiation , but bottomline it remains unsigned and under negotiation ) .
If it is signed , and the contract is for a 10 year period then a PE of 8 is justifiable
On that basis , if MHM can mae a profit of $4m next year , on a PE of 6 thats a market cap of $24m
The market cap at present is closer to $100m or 4 times this amount , so the amount of blue sky that is factored in is huge.
All just my opinion
This is a very tired market and the PE that companies are being given is de3finately lowering as expecations reduce .
I am not sure where you get the PE from , as I see the financials the asx listed company actually will make a loss
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A PE for any company of 24 is full of Blue sky and in my opinion...
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Last
32.0¢ |
Change
0.005(1.59%) |
Mkt cap ! $133.9M |
Open | High | Low | Value | Volume |
32.0¢ | 32.0¢ | 31.5¢ | $277.6K | 867.5K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 35621 | 31.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
32.0¢ | 88995 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 35621 | 0.315 |
5 | 140129 | 0.310 |
1 | 9836 | 0.305 |
3 | 66397 | 0.300 |
2 | 107389 | 0.290 |
Price($) | Vol. | No. |
---|---|---|
0.320 | 88995 | 1 |
0.325 | 48739 | 1 |
0.330 | 108300 | 2 |
0.335 | 13548 | 1 |
0.340 | 113939 | 5 |
Last trade - 16.10pm 16/07/2024 (20 minute delay) ? |
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