The way we look at the financial report is very subjective IMO.
Gearing is 76.1% and there is huge uncertainty in relation to MDT's ability to deal with the its debts. However, NTA is 38c and current SP is around 10c and thats why we are able to buy a share at almost 25% of its fair value, because of this uncertainty. High risk = High return.
If you believe that the worst is already behind us then buying at these prices is once in a life time chance. If you believe that we are not out of the woods yet and that GFC will have another dip, then you better find another share to invest your money.
MDT Price at posting:
10.0¢ Sentiment: LT Buy Disclosure: Held
