MCPHERSON'S (MCP) MCP recently broke out of top end of a trading range when it went through 1.80.
Even though it is now at 2.00, the potential is for further gains.
MCP has two major divisions, housewares (which because MCP is an importer recent AUD strength is a bonus) and printing (which recently renewed its phone book contract with TELSTRA until 2008).
MCP appears cheap, with a p/e of just 8 times and a fully franked yield of 6%.
MCP reminds us to some extent of GUD HOLDINGS and COATES HIRE in a technical sense, both of those stocks having undergone massive upside re-ratings over the past 6 months.
MCP is underowned by institutions, with major shareholder being Richard Pratt's THORNEY INVESTMENTS, which has recently had great success with the takeover bid for SNACK FOODS.
We regard MCP as a buy between 1.80 and 2.00. Stops below 1.70. In the short-term we see the potential to the mid to high 2.00s and would not be surprised by further gains over time.
MCP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)