Valuation / Fundamentals, page-2

BrentT

I’m think you do not have a very good understanding of what you are talking about. For example:

1. Share valuations are many faceted highly subjective things that are rarely agreed on.
2. I don’t know what he term ‘intrinsic value’ means and I doubt you do either.
3. I do not think we need to wait for the annual report to come out to make a decision about buying/selling here. I have built my own MNY model, which I am fairly certain is quite accurate. I therefore already have a very good idea of what the 2016 revenues, profits and dividends will be.
4. You say that your major concern is operating cashflow and management and then you mention the DRP. The DRP policy is cashflow neutral.
5. You say that the company is burning through cash, which is nonsense. The company is reinvesting the cash it gets from its clients into new loans and also using external borrowings to expand. This approach is balanced, sensible and reasonable. I don’t think they need to do a capital raising, but expanded borrowings in 2017 may be on the cards.
6. Paying a regular (and relatively high) dividend is in the best interests of shareholders. That is the reason I bought into this stock – I want the income stream.

MNY seems like a well run company to me.
K