Thanks Wombat. I agree, from a SH point of view it would have...

Thanks Wombat. I agree, from a SH point of view it would have been helpful to see some announcement before the ticket; however, the company shouldn't be focused on the SP and if nothing has materially changed worth talking about then no announcement is a kind of 'announcement' - that is: it is business as usual.

With the speculative action MMA do have to be careful with their reporting. I would think now they have gone on record without indicating anything is wrong that rules out a write down in assets. If they did a write down this year without even hinting it today then there would have to be serious questions asked.

So we have business as usual. That is to be expected contracts are generally long term in nature so wouldn't expect anything too disappointing in the profit figures this year. All eyes and ears will be on how next year and beyond is communicated on or around 25 Feb. If it is upbeat and believable then I expect a big re-rate to around $1.50.

I can't see growth in FY16 but a promise of growth returning FY17 should be enough to do the trick. Just a 5% 5 yr growth profile (including zero next year) should see a SP of $1.60 in the short-term. Once that growth is confirmed then it could easily jump above $2 again.

Analysts are notoriously wrong and occasionally it makes one wonder what is their motive, so I wouldn't take much notice of their price targets. The market can be irrational if traders with big pockets choose to push a price in a certain direction, that relentless force cannot be factored in to an estimated SP value. Provided a company is basically sound then the upside of a beaten up stock can be huge - however if real cracks appear in the business model of a company beware the shorters will have a field day.

My belief lies in the company's strategy, the inevitable upturn in oil, the willingness of investors (equity and debt) to back the strategy under a year ago and a decent track record to date.