under valued, page-56

Joca

I tell you what I think MGX should be getting into and that is themselves.

Given these guys have 31 cents cash why don't they buy back their own shares - its a risk free proposition. Spend 20 cents to get 31 cents back.

It beggers belief that this stock has traded at around a 30-40% discount to cash for almost 18 months and the board has done nothing about it. Granted the price may move higher on the buyback but why not give it a go.

Also if the Iron ore price stays at these levels the company may make a profit or break even for FY16 - in which case why not pay a dividend of 2-3 cents and use up the 20 million or so in franking credits. Franking credits are worth 2 cents a share which would be a 10% return on the current share price. Is that too hard for Management to grasp or what.

That would still leave the company with over $300 million cash - they owe their shareholders this much in light of their incompetence in regards to KI.

While I don't think this is the worst run company I've ever seen its management and board are certainly the laziest.

Having said all that I agree with Auto that this should run into the high 20's provided IO stays above $60.

The only thing that's holding it back is the shorts which is another story altogether. At one stage there were almost 100 million shares being shorted - who was the shareholder with that many shares who lent out that many - I can only think of one and why the hell didn't management do a buy back to burn them - as stated above it was a risk free proposition.

Why would someone short a stock that's at a 40% discount to cash if they didn't know that management weren't going to do a buyback - why would you take the risk unless you knew for sure that they weren't.

IMHO/GLTA