Ann: Preliminary Final Report , page-31

This has to be cheap now.

PE 10. Forecasted EPS growth 20%

Valuations with differrent methods ie. Montgomery method, DCF, Earnings Power Value, gives an intrinsic value of MCE at over double the current market price. (Please see other posts on advantages of the company)

The market is up but MCE is getting smashed. Instutional investors must be dumpind theirs. It could take a couple of weeks to get just above $5 and $5 is cheap. Periods like these in the stockmarket were the phrase "cheap can get cheaper" comes to mind. Warren Buffet is right about the irrationality of the stockmarket and believers of the efficient market hypothesis have no clue about the fear and greed that drives the stockmarket. I can feel the fear with this stock as it keeps making new lows. I myself am freaking out and doubt has crept into my mind about whether I am missing something with this company but from what I have read the demand for oil is increasing and there will be supply constraints with renewables still unable to meet the needs of the growing BRIC economies.

I have tried guessing the bottom with yesterdays low of $4.68 but the market always teaches me a lesson. This year I have had many lesson that I thought I learnt in the 2008 GFC.

It is very tough to see all the other stocks that I could have invested go up but MCE only going down. Buffet always says when investing always do the write thing and not to get involved in the folly of the market. It still amazes me at his composure and ability to detract from the emotional connection when one participates in the stockmarket.


I believe my analysis is write and trust the management to grow the company. I have only one stock in my portfolio and that is MCE.