With the current share price at .45 the yield on MCU is sitting...

With the current share price at .45 the yield on MCU is sitting at 9%, unlike most companies in the same sector, like SGN, PGA, TEN, FXJ, the list goes on, Mitchell is expected to raise their payout in dollar terms as their net profit is expected to grow at around +8% this financial year. Mitchell has a rule of paying out 60% of net profit in dividends to shareholders.

SGN, where Singleton has gone out and stolen some of SGNs clients (Also read this link on SGN http://www.hotcopper.com.au/post_single.asp?fid=1&tid=772038&msgid=4279983) SGN is also carrying 65.8% Debt/Equity and lots of deferred acquisition costs over the next 12 months. PGA has slowing segments and a massive 177% Debt/Equity.

MCU has a Debt/Equity of 42.5% and is growing net profit at a rate of around 10% per year as it was positioned early in growing segments of the advertising market.

UBS and Huntleys both have a DCF target of $1.05 over the next 12 months.


Regards.