The recent news has been great with half yearly results showing a 257% increase, an increased profit upgrade replacing the one made in October, new agreement with Harvey Norman to supply an extended range of products into their new OFIS stores, agreement with FUTURETRONICS and Harvey Norman to sell Gaming console accessories through the Harvey Norman outlets and also news that MNL is seeking acquisitions.
The shareprice however hasn't reflected at all the great news and potential of this company but this is true for most companies at the moment. Eventually market sentiment is going to change and those that had the vision to get in at the bottom , whether it be MNL or any other undervalued stock ,are going to reap the huge rewards. Apart from the good results news and the profit upgrade recently announced there was mention in the report about seeking another acquisition.
ACQUISITION : I love the strategy they have in play right now in taking advantage of a down market - Market sentiment is in the toilet right now and the MNL shareprice is at all time lows so they have initiated a share buyback saying they don't see a better investment at the moment than that of investing in their own shares. IMHO they are accumulating their own shares while they are at low levels which will be re-issued at a later date at a higher price to fund a share based acquisition.
The share buyback is subject to the same insider trading rules as anyone else and they are only permitted to buyback at 5% above an average shareprice over a number of trading days - In the lead up the the recent OFIS, FUTURETRONICS and half yearly announcements they pulled all their buy orders but with those announcements now out of the way don't be surprised if they recommence the buyback.
Mike Veverka is in the US at the moment on business - Interesting !!!
MNL Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
