fusion investing - pedal to the metal - buy

What Recession?

The market still appears to be SUBSTANTIALLY UNDERVALUING MTU.

Record year on year (5+ years) growth despite the recession and GFC.....what more form a company could you ask for? Where else would you put you money in the current environment? With a 70% pay out ratio, the current market is mad and you get rewarded for relative safety!

M2 KEEPS PEDAL TO THE METAL

Dean Morel Share Guru and investor in M2 reports (update analysis and valuation coming soon):

M2 announced today higher than expected 2011 forecast.

According to the guidance M2 expects SUBSTANTIAL GROWTH since the last financial year.

Revenue is forecast to grow by 12 per cent in 2010-11 to between $425 million and $445 million from the forecast $380 million to $400 million in 2009-10.
Net profit is expected to explode 52 per cent to $22 million and $23.5 million in financial 2011 from the 2009-10 guidance figure of about $15 million.
Earnings per share is forecast to rise 36 per cent to between 18.1 cents and 19.4 cents from the previous yearfs guidance of 13.3 to 14.3 cents. Excluding non-cash amortisation of customer contracts, underlying eps is forecasted to up 42% to 20.7-22 cents.

The market still appears to be SUBSTANTIALLY UNDERVALUING MTU. On underlying eps MTU is trading at a forward P/E of 8.7 which is ludicrously low for a company executing their growth story in such fine fashion.

Disclosure: Long MTU

http://www.fusioninvesting.com/2010/07/what-recession-m2-keeps-the-pedal-to-the-metal/