The triple AAA rating means that MCW will be able to gain low interest rates in the refinancing of debt mentioned - thanks to the low gearing (36% approx). It will be interesting to see what this rate is as i would thing cash lending is still tight so it may be no better than before but cheaper no doubt if gearing was still at 65% before the US sales.
On the breakout comment, i hate to put your beers on ice but i don't think there is much chance of this in the near future. For starters the NTA's have been rerated at 77c. I think there needs to be further write downs in asset values to come (over time) before asset values increase. The annual report also stated difficult conditions to continue into 2010 so i would expect SP to continue to be lower than this NTA value. How much? I don't know but the market is always right.
From the charting perspective, i also see a levelling out occurring. There has been no break above 60c (or the 61.5 / 62.5 high from a few weeks back), buyer / seller swings occurring quite often, non exciting annual report (met targets tho) and this time of year (May-Oct) being pretty good time to be on the sidelines i think the amazing candle from Friday would be a good low target to aim to get back in.
I would expect a low 50 / high 40 target to this once the market realises they should have sold high 50's (like me haha). I executed my stop loss at 54c Friday so good luck to holders in still. I will be looking to the continued sideways 50-60c rise and falls for a while yet unless management buyout MQG fees which may be the reason of this current announcement or we reach the end of year dividend record days.
Just some thought on the MCW subject...
MCW Price at posting:
58.0¢ Sentiment: ST Sell Disclosure: Held
