directions, page-6

re: **short term opinion please** The post I made on 9th May (before latest profit warning) is still applicable.

quote
A higher yield is generally compensation for the fact a stock has minimal growth prospects.

This appears to be the case for Millers. Their last 6 months was flat on the p.c.p. - this at a time when retail spending is going ahead gangbusters.

Problem is that the market sectors in which Millers operate is extremely competetive, and there is no sign of this trend easing.

Very good chance Millers have continued to suffer margin loss, and most likely this current half will be disappointing.

6 1/2% yield will not support the share price if they come out with (another) profit warning before the next reporting date.

unquote

Based on the numbers contained in their profit warning of 1st June I expect they will report a small NPAT loss for the June half.

I can see nothing on the horizon that will change the fortunes for MRL. Indeed, trading conditions in their market segment have arguably got tougher.

Steer well clear is my suggestion