If anyone is in doubt about MG's propects just visit www.mgc.com.au and see, with your own eyes, that MG is not a little player.
Once this exercise is over and people realise how oversold this stock is, might be a little late to get in at the lower point in the cycle. Specially when the EOQ statement is published with the latest numbers.
With dividend unaffected (as per company's announcement) at 7.8 cents (minus 3.5 cents paid in March), we should still be looking at 4.3 cents in September, or possibly more considering A$ is now lower than when the announcement was made and higher sales to overseas clients. At todays SP this amounts to about 7% for the year. Not bad at all! Who else pays a dividend like this?
When you go to the supermarket look for the Devondale range, Liddells, Table Cove and also Danone products. If at Coles buy MGC's milk.
Remember that in Australia 20 million people drink milk and consume dairy products everyday and will not stop consuming it any time soon. If we look at China, 20 million people is just a little town up the road from Beijing ... ;-)
I am in for the long term and trust that MGC will soon return to greener pastures.
MGC Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
