I'm not too concerned by the debt and reduced ROE. They made several giant acquisitions this last year and it was to be expected. I think if they went out and made several more this year I would be concerned but they have good margins and strong cash flows which should be used to pay down the debt over the next FY (comments from management indicates this will be the case).
MTU has some of the biggest price movements of any stock in my portfolio, and it's been this way since I was in at just under $3. Just after I bought Vaughan Bowen sold some stock and everyone panicked and it dropped ~20% - now look at it!
I wouldnt be surprised to see this down around $6 tomorrow but then in 2-3 months back to $7.50.
MTU Price at posting:
$6.32 Sentiment: Hold Disclosure: Held
