This stock was talked up by the StockVal/Clime people in their research letters (23/7/10) and their "valuation" software, with predicted "value-based" share prices of around $0.60 in FY13 and $0.70 in FY14. They also argued there were substantial discounts to "value-based" share price estimates for JB Hi-Fi,BHBP, Myer, Quantum Energy, Reject Shop, Carnarvon, TFS Corp, etc, etc (which all tanked). That's the problem with "Value" estimated by software using rear-vision performance metrics. Unfortunately it's a changing and dynamic world and such estimates are often worthless - a bit like MLC. I don't need the loss as yet, so am still holding. I've already lost 75%, so hanging on for further upside or downside is immaterial - the shareholding value for me is the capital loss it represents.
MLC Price at posting:
7.3¢ Sentiment: None Disclosure: Held
