time to sell?, page-3

What you bulls on MCE fail to appreciate is that the EBIT margin at over 30% is unsustainable.

Competitors, as well as MCE, are increasing production capacity and in my opinion a margin closer to 15% is highly likely in coming years.

Yes, MCE has the most efficient new plant but making the bouyancy products is similar to making sausages. Putting ingredients into a skin and cooking it. It is a commodity product and the producer with the lowest price will win the order.

The high $A is also a negative.

There is a boom on at the moment for bouyancy units for new oil rigs and replacement units in production rigs but it is risky to assume this boom will continue for years.