Trade @ 1/3 net tangible asset backing 1/9 asset backing

Recently just found MCL could be significantly undervalued which is rare find under current market conditions.

SP now 2.2-2.4c , net tangible asset 6c per share as at 30 June 2023, asset $65m roughly 19c per share.

not like other technology/food/ health care penny stocks, MCL’s tangible assets has reasonable basis, it owns 8 venues around Australia, and acquired Adelaide Hill group in 2021 for $47m vs current MC8m.

Annual revenue now $82m, mainly from its beer and spirit production/ sales. Total sales number has been increasing every year, indicates its products are getting more and more popular in Australia. $82m sales equals every Australian spends $3 on its products.

Recent business reconstruction & debt concerns result in SP retreat to 52 weeks low, mainly due to few major shareholders oversold their shares on the market. Meanwhile the new management already done costs saving actions and total $8m savings now becomes possible ( $5m already achieved as it announced) and ready to divest some assets to reduce debt.

all in all I suggest 2.2-2.4c could be a very good entry opportunity, short term SP 5.8-6.5c subject to:

net tangible assets valuation is reliable—6c per share
cost saving of $8m achieved—4c per share
Sales revenue still increasing —2c per share (its beer spirit more popular)

the above indicates fair value could be 12c + as long as it’s business keeps growing .