Could be a time limited opportunity here, as once PPT has sold up volume will severely reduce.
Main risk I guess is from breaches of banking covenants. As per last Annual Report - 332 mill in pledged assets; of which 187 mill is intangibles; 107 mill in L/T borrowings.
How much of assets will be written down in FH09 ? What affect will this have on banking covenants ?
Sure, 2H09 and FY10 profits will be down/ nil/ a loss, but at 30c this could be a long term gem, real question for investors is will it survive this recession/ depression - if YES it must be a buy...
...I have soft spot for MCP as this was the first company to start my investing off several years ago, buying in at $1 and riding it to $5 over a few years and receiving big divi's, then selling out. Maybe another opportunity to repeat??
MCP Price at posting:
29.3¢ Sentiment: Buy Disclosure: Not Held
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