MWR 4.40% 9.5¢ mgm wireless limited

Ann: Spacetalk goes to the UK, page-131

ANNOUNCEMENT SPONSORED BY PLUS500
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM
CFD Service. Your Capital is at risk
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
  1. 7,244 Posts.
    lightbulb Created with Sketch. 168
    I've recently posted my thoughts on a share price target over the next 6-12 months. I can see a realistic case to expect the sp could reach $13 in that time frame based on a big increase in sales through the UK given their population relative to ours and that rollout is now confirmed by the company for April. As long as the market then expects other European countries to follow, the stock should trade on a high multiple. The target would heavily depend on UK sales per head of population being comparable to ours. If sales there outperform sales here and that is followed by news that other European countries will follow, then it is hard to pick how high it might go. Stocks can sometimes go much higher than any of us expect. If UK sales are much weaker than they are here, then I certainly won't be expecting anything even close to $8 any time soon. The sp has to follow sales growth.
    A target of $13 in 6-12 months looks reasonable to me based on modest expansion though UK and Europe and based on sales there being lower but close to ours on a per head of population basis. Is this target looking realistic based on the chart pattern? What will be an intermediate target (2-3 months) based on any good news flow?
    The chart below is similar to charts I have previously posted. The main difference is the latest January low has meant the bottom curve has now been redrawn as rising at a more gradual exponential rate than I had previously drawn based on the October low. However the sp is still undoubtedly rising at an exponential rate for both the lows and the peaks which reflects an exponential growth in sales. As long as that exponential growth in sales continues, then the sp has every chance of doing the same unless it explodes too far to the upside and is not backed up by a similar increase in sales. Eventually sales will flatten off and the sp will no longer be able to rise strongly but that might be 2-3 years away. If the price continues to follow the current pattern, then the chart below is pointing to the next peak being around $7-$8 if the next peak is in around 2-3 months. In 6-12 months, $13 should fit the current trend but sales in the UK will have to be at least reasonable. IMO, that target will be very much news dependent.
    $7-$8 looks high from here but follows the current curve for peaks in the sp over the last year and certainly doesn't seem high based on how much of an increase in sales UK can bring.

    https://hotcopper.com.au/data/attachments/1423/1423020-8a5d25a2fb8db5cd539054be2bb27d1f.jpg





 
watchlist Created with Sketch. Add MWR (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.