Jus my thoughts and keen to hear others thoughts.
MTS is essentially a wholesaler across F &G, Booze, Hardware and Auto.
The business relies on their retailers selling the goods and until recently the business model was outstanding.
Competition and some poor outcomes relative to Franklins acquisitions have weighed heavily on the SP
The Sp is also a reflection on the transformational costs of around $150m pa on average over 3 years. Thats near a half a billion dollars. The market has been betting that the price will go down with that Cap ex overhang.
If we look at projected earnings, less cap ex, it seems that the 60% div ratio will be very healthy and if their Diamond project is on track, the market will quickly rerate the business.
IMO MTS is at the bottom or near bottom of its price cycle and becomes a very compelling buy.
Auto, hardware and ALM seem to be holding or improving with acquisitions and its really down to F& G improvements
Does anyone really see the SP going much lower?
Thoughts?
Cheers Mulac1
whats really holding MTS back?
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Last
$3.78 |
Change
-0.060(1.56%) |
Mkt cap ! $4.126B | |||
| Open | High | Low | Value | Volume |
| $3.83 | $3.86 | $3.77 | $56.03M | 14.80M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 449630 | $3.78 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.79 | 21832 | 1 |
View Market Depth
| Last trade - 16.10pm 21/06/2024 (20 minute delay) ? |
| MTS (ASX) Chart |