I was actually one of the sellers at the opening yesterday and about 20 minutes later bought back what I had sold as well as pocketing about $6000 profit. I too would have sold a lot more but the opportunity was very limited.
I did feel sorry (after the trade) for whoever were the sellers and I think it is a fault of the timing that the ASX uses to purge orders the day before rather than just before opening. I also have issue with their timing for rights trading etc. etc. whereby the market can trade days before anyone has even had their allocations confirmed. Heaven help any shareholder who doesn't own or monitor their computer these days!
MFI should be a star performer this calender year I think and I wouldn't be surprised to see the price pushing $1.50 by December. I have a NPAT estimate of $25m for FY07 but a broker has a $34m NPAT estimate for FY07 in a recent report. I think it is probably a little ambitious.
With MBR set up now and top management in both companies, and forecasts for EPS growth for 2-3 years, as MFI attains some recognition in the market, it will be a star performer from these sub $1 levels. Looking forward to its future prospects.
MFI Price at posting:
0.0¢ Sentiment: None Disclosure: Held
