Assuming that Rentails total is A$400mn, and A$200mn MLX share, then we're pretty much at 80% cash backing by end of Q1. Agreed that it is reasonable to wait until then for further guidance. However, I'm not necessarily all that enthused about M&A unless it can be very clearly shown that the RISK-ADJUSTED IRR is superior to a buyback. As good as Brett & Co are at this, there is just plenty that can go wrong with M&A beyond anyone's control. I'd much rather have a buyback IRR of 20% than a very uncertain M&A IRR of 30% (figures for illustration only).
MLX Price at posting:
30.5¢ 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)