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4.40%

9.5¢ mgm wireless limited

Edit; I forgot this was a ten bagger last year so I'm not...

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chuk

7,244 Posts.

168

09/02/19

13:11

Post #: 37385286
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Originally posted by chuk: ↑

If this company sells 130,000 per year going forward (very close to guidance from our CEO), on my latest estimates for NPAT, my target would be $12.14 for a low PE of 12 or $17.20 for a more likely PE of 17. I've assumed advertising and overheads at $3.5mill above 2018 actual and all other costs the same except of course for COG which rises with the number of watches manufactured.

I would love to hear from anyone that thinks there is anything wrong with my assumptions, especially on number of watches going forward.
I think the main risk atm is having only one big retailer in Aus and perhaps that has some influence on the current mc but that will be mitigated by at least one and hopefully several big retailers or telcos in the UK and hopefully another big retailer or telco in Aus after JB's exclusivity ends this month. As that risk diminishes hopefully the sp will rally strongly and continue to do so on evidence of UK sales numbers.

I think the great performance in the sp over 2018 will easily be repeated this year, especially from this corrected share price, with 3-5 times the current sp on offer.

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Edit; I forgot this was a ten bagger last year so I'm not expecting a ten bagger again this year but rather 3-5 times the current sp.

MWR Price at posting: $3.34 Sentiment: Buy Disclosure: Held
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