Ann: Trading Halt , page-22

There was an article in the Fin Review on the 17th May about the top 15 Australian equities fund managers over the last 3 years. In comparative performance, Orbis Equity Fund (now Allen Gray) was the best of all 15. Considering this track record, their recent 10% stake in MCE, and their long term contrarian investment strategy, I think holders shouldn't be spooked by the trading halt. I personally don't believe there will be a capital raising, but rather a detailed update on financial and operational performance; as stated in the ASX release. I presume this will include nameplate capacity for Henderson and an update on the current order and quote books.

Most retail investors and even professionals (particularly Roger Montgomery) were too bullish on MCE's prospects in 2010-11. Its clear from the stock price performance, and the euphoric statements that were on this forum at the time, that investors became too emotional and the stock approached levels that neglected underlying value. Considering this turn of events, is it then not also possible NOW that investors have turned too negative in their sentiments and thus priced the stock at a discount?

Remember, there were good reasons why investors became so excited about MCE in the first place.