MIM intraday, page-2

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    copy info below.
    I do not hold.
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    Thursday, 21 November 2002
    Source: RWE


    The much-rumoured takeover of MIM Holdings seems a step closer: the company reports it has had an unsolicited approach from XStrata Plc, a Glencore business.
    The news put a rocket under its share price, which has topped at $1.50 on Thursday.

    That's a gain of 25c or 20 per cent.

    What price are brokers looking for any offer to reach?

    "It all depends on how the market is," said Marcus Mueller, a director of Reynolds Stockbroking.

    "In a bear market, investors use the PE and dividend yield, whereas in a bull market it's net present value.

    "At the moment, the market tends to PE and dividend yield, so the valuation depends on the market's mood.

    "Nick Stump has done a tremendous job rescuing MIM from near bankruptcy.

    "However, they haven't delivered on earnings yet - there's always something to write off.

    "In a normalised situation with no write-offs and reasonable commodity prices, they could deliver $200 million to $300 million net profit.

    "Most brokers have them on a net present value of $1.50 to $1.80.

    "Glencor are interested in developing their coal assets.

    "There are still a lot of issues in a takeover of MIM.

    "WMC is the next target, once the demerger is complete.

    "It's much more clear cut a takeover than MIM will be.

    "CSR, with the decision to split into two parts is another takeover play in the next 12 to 18 months - the Rinker business in the US is sensational," Mr Mueller suggested.
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    Good trades
 
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