so you can call out three examples of them being wrong in what -...

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AuContraire

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15/01/21

08:58

Post #: 50184357
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Originally posted by joewolf: ↑

I am a subscriber and followed their advice when it was unbundled from Graincorp. I am a great admirer of the publication but have always had doubts if their thesis did not work out in a relatively short period. Examples of that would be the entire Timber industry thing they had. Add to that NHC, Westfield etc.

The business is a great business but really they put far too much debt in here. That is why they raised $170 million to get it back to a reasonable level. Even with a lower interest burden in their 2019 results, it's still on a 20PE. The intercompany interest charge would make this have to be a very fast growth stock. It's clearly not that at the moment and we cannot predict our lives after Covid and its impact here. Covid has impacted them directly but that has made it even worse as the mix changes are at lower margins it seems.

I have done well with II but this is one I am watching a lot more closely.

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so you can call out three examples of them being wrong in what - 15 years?

god forbid, people might make incorrect calls on the sharemarket...

It's still your call what to buy...

If they can be right 51% of the time, you'll do okay in the market...

So i'm glad you say you do well out of them, but its a bit harsh to judge them because they had a few stinkers...

UMG Price at posting: $3.99 Sentiment: Buy Disclosure: Held
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