I feel some retail stks are overpriced and i am short eg. WES. But i also feel that a couple of retail companies are overlooked by mkt and MCP fits this catergory imo.
MCP was/is a printing company. But ages ago management realised printing has limited future margins and went into retailing health/beauty products. These are firmly aimed at the budget consumer. Hence, products are found in 'Crazy Clark' type shops as well as hair salons. Some lines however, are also sold in pharmacies.
Last month's interim produced showed the strong cashflow continues, margins have increased, debt reduced substantially and interim div re-instated at 10c ffr. The div will remain at 60% of EPS until debt is hammered down even more.
SP continues to rise since interim announced. On at least 2 occasions MCP management have reminded holders that MCP benefits strongly in 2H10 if AUD rises above 85c level. Well we are now at 92.7c so i anticipate 2H10 final result to exceed my (already high) expectations. Def expect final div of no less than 14c ffr as FY10 EPS should be 40c. dyor
MCP Price at posting:
$3.21 Sentiment: Buy Disclosure: 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)