lets see their cashflow, and debtors before raising the buy flag, Rocky, you pay a high price for a cherry consensus.
Of course there are risks. However, I have found Vaughan Bowen and his team to be excellent allocators of capital, actually I'd say brilliant. Having both cash and the strength of character to use it at the height of the GFC places them above so many wannabes in Australia. Excellent deals at fantastic prices.
Now they appear to have done a superb job of integrating those businesses. That's another sign of great management.
Their business model provides reasonable clarity of cash flows and with such a large customer base, revenue shocks are unlikely.
Debtors. They've spoken about this before and their SME customers pulled through the GFC better than they anticipated.
Cash flow: eps actually masks underlying business strength due to large non-cash amounts like amortisation.
I believe the current price provides an good margin of safety and I'll be buying opportunistically on any sell-offs.
Is the current price a back up the truck situation? No, I don't think so. However, I'd love to know ten better companies at current prices to hold as part of diversified portfolio. Heck five, or even one would be nice to hear.
MTU Price at posting:
$1.82 Sentiment: Buy Disclosure: Held
