MGC 0.00% 43.0¢ mg unit trust

The best is yet to come?, page-8

  1. 5,495 Posts.
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    The shares look cheap to me. P/E of less than 5 on revised outlook, yield of 7.5%, again on revised outlook.
    MGC has a huge market share that simply will not disappear. Farmers will moan for a while, but that's life, and the show will go on. Ultimately the price of milk on the open market is what it is.
    Bottom line, there's a huge franchise here for a market cap of $200m.
    On the regulatory/legal side, from what I've read, there were ample warnings in the PDS, and in the half year results. And let's not forget that the PDS is a year old now - things do change.
    Darkest before the dawn.
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