According to Aegis investment opinion as of yesterday, the key points they highlight are:
Asset base is sub grade in nature and more exposed to market downturns than higher quality assets. Mostly exposed to weak US sector. Their asset sale program will reduce their rental income base. Due to the current climate in Aus & USA they hold a -ve view on MCW. They dont expect them to sell the assets and expect revenues to drop. Whilst short term debt has been secured, they face large refinancing in 2010 probably at higher margins. In short, their 12m recommendation is to sell MCW, however, the consensus recommendation is a buy. Out of 8 brokers in the consensus survey, 1 rates it a sell, 4 say hold, 1 says buy, 2 say strong buy.
MCW Price at posting:
21.0¢ Sentiment: ST Buy Disclosure: Held
