Mayne Group (MAY) Just three weeks after guiding the market to a consensus current year NPAT around $200m, MAY has shaken the market with a further earnings downgrade. This time management has indicated a current year NPAT between $170-180m following a significant deterioration in the hospital division. We cannot believe that the hospital division is entirely responsible for the $20-30m deficiency.
The market has correctly dumped the stock and it will take perhaps up to one year before the investment community has any confidence in the company or its management. We believe the stock price could fall below $3.50 in the months ahead.
SYB Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
