\"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>
The information you have is not the information you want.
The information you want is not the information you need.
The information you need is not the information you can obtain.
The informaton you can obtain costs more than you want to pay.
\"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>
The information you have is not the information you want.
The information you want is not the information you need.
The information you need is not the information you can obtain.
The informaton you can obtain costs more than you want to pay.
MHI has proved their quality in a tough operating environment. But for an accounting change which transfers $700,000 in costs from the 2nd half to the 1st, their profit would be unchanged from the same period last year. The 6% rise in revenue compared favourably with ANC's 6.6% sales decline. Sales were assisted by a steady increase in Australian store numbers (but per store sales were down 2.4% in a softer trading environment) and a continued roll out of Canadian units. Canada scored a maiden operating profit at a modest $200,000. The rapid increase in scale and improvement in profitability bodes well for future years. I wouldn't be surprised if we saw MHI open in a 4th market within 3, maybe even 2 years.
By my metrics it's currently priced for 5% growth (EPS 39c, Growth 5% falling to to 3% after 10 years, Discount Rate 10%). At a historical 14% growth rate NPV is around $13. So in the mid six $s MHI is a bargain but I'll be awaiting a clear up-trend signal before buying.
I wonder what the US market would be like for MHI. It shouldn't be too hard for them to pop over the border if they want to. It might even be easier to keep their business on the west coast of Can/US than it would be to open shops on the east coast of Canada.
I agree although moving across Canada could be useful in the long term because it would prod them to develop French speaking systems and processes. This could facilitate them entering France.
\"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>
The information you have is not the information you want.
The information you want is not the information you need.
The information you need is not the information you can obtain.
The informaton you can obtain costs more than you want to pay.
... I never sold the 2000 I bought in the middle of Jan and now they're up to 7.60.
Still lucky.
\"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>
The information you have is not the information you want.
The information you want is not the information you need.
The information you need is not the information you can obtain.
The informaton you can obtain costs more than you want to pay.
Reply With Quote
Bookmarks