MLC 0.00% 4.8¢ mothercare australia limited

does anyone care about this stock?, page-3

  1. 1,187 Posts.
    I don't think I will be invested in this stock until it can show it can generate a steady cash flow... I thought I would hold it for a much longer time than I did... and somehow made a tiny profit...

    In my opinion they need to do two things:
    1. Generate cash
    2. Prove that they can deal with foreign online competition
    3. Release some information about the Priceline deal and store profitability.

    I visited Chadstone in Melbourne last week where there are baby stores grouped togethor, and MLC may have the most complete range, but it just didn't feel as inviting as the other stores. In fact it felt a little cheap - and if management are focussed on building a brand this needs to be addressed.

    Compared to SFH with a market cap of 120m, No debt and 800 stores and free cash flow of about 30m to 40m per year... MLC has a long way to go to justify its 30m market cap

    I wouldn't be surprised to see this drop another 30% unless they start communicating with the market more openly.

 
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