That's a misquote from Ben Grahams article in Forbes during the...

First 37 Last

Share
Profile

Follow
croasian

2,211 Posts.

48

31/12/16

10:54

Post #: 21620246
Share

Originally posted by danginvestor ↑

I agree with that approach. But let say MRM were to somehow have no LT debt besides their usual $200 to $250 debt to avoid a lazy balance sheet. In other words, what would MRM be priced at if it were to raise capital to repay all that ~$180M debt used to acquire Jaya.

The entire company, post cap raise, will not be the current $100M. Its diluted share price will not be 30 cents a share.

This is one of those cases where the market thinks that MRM is worth more dead than alive.

If it were to die, investors holding at around current price will do alright; If it were to survive the cycle, a big chance that it will, it'll reward shareholders at current prices very well.

So that alone is a great case for bargain hunting.

But if it managed to survive the current crash while its weaker competitors and small operators kick the bucket... MRM having been forced to be more efficient... not only will its share price be at its NTA, but the earnigs and "growth" phase will also kicks in.

Very minimal downside, great upside potential.

Expand

That's a misquote from Ben Grahams article in Forbes during the great depression as it does not apply in this case as previously discussed.
70% of NCAV are the net nets.
Really not a compelling argument from our standpoint but best wishes with it.

Last edited by croasian: 31/12/16

MRM Price at posting: 27.0¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

HotCopper Highlights: Your most watched stocks for Week 47, 2024

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 46 more messages in this thread...

First 37 Last

Add MRM (ASX) to my watchlist

That's a misquote from Ben Grahams article in Forbes during the...

Top Stories

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Sales growth pushes Lovisa's fortunes (and shares) upwards

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Scientific conference spotlights PYC's work on blindness disease treatment

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects