MET - Metlifecare - one for the fundies?

[glasszon]

Any wisdom why SP is sitting still at $3.30? Thought would be closer to 3.10.

The shares from the placement cannot be traded yet.

[macduffy]

The usual reason would be that the placement at $3.10 was well sought and that there is still unsatisfied demand at a higher price. Normal supply and demand.

Inability to trade shares from the placement won't be an issue if recipients are already big shareholders. Of course, they may not want to take profits!

[Snow Leopard]

Upped their forecast cash flow from $61M to $70M today, put a bit of bounce in the share price.

Best Wishes
Paper Tiger

[noodles]

Upped their forecast cash flow from $61M to $70M today, put a bit of bounce in the share price.

Best Wishes
Paper Tiger

These guys made 20million cashflow is the first half, so they made ,50 in the second half. Annualised that is 100 million. With a market cap of around 700 million, doesn't that make this company very cheap?

[Snow Leopard]

These guys made 20million cashflow is the first half, so they made ,50 in the second half. Annualised that is 100 million. With a market cap of around 700 million, doesn't that make this company very cheap?

The original $60M7 forecast came with some small text:
"The operating cash flow target includes sales, resales, repurchases and operational expenses but is exclusive of one-off merger costs, integration costs and interest cost."

On that basis first half was $29M2.

So you may wish to revise your opinion to "reasonably cheap".

What I expect to see over the next few years is a steady increase in build rate, cash flow and profit as they gear up to a growth company from the mess that they have been.

But it will take time.

Best wishes
Paper Tiger

[noodles]

So second half op cash flow was 41 mil. Therefore annualised is 82 mil.

[forest]

MET has recently had a capital raising and therefore an increase in the amount of shares on issue. What is important to the investor is the cashflow per share. Doing the calculation with the extra shares on issue it does not look to flash to me, for the forecasted CF/Sh calculation now compared to before the equity raising.

Just my thought in the forest.

[percy]

MET has recently had a capital raising and therefore an increase in the amount of shares on issue. What is important to the investor is the cashflow per share. Doing the calculation with the extra shares on issue it does not look to flash to me, for the forecasted CF/Sh calculation now compared to before the equity raising.

Just my thought in the forest.

Would appear to be plenty of good light in your part of the forest, affording you a clear view.!

[Snow Leopard]

MET has recently had a capital raising and therefore an increase in the amount of shares on issue. What is important to the investor is the cashflow per share. Doing the calculation with the extra shares on issue it does not look to flash to me, for the forecasted CF/Sh calculation now compared to before the equity raising.

Just my thought in the forest.

Well that depends upon which numbers you were using and we can discuss this till the sun dies, but as a for instance.

Deducting the interest but not the one offs the increase of shares from 184M5 to 210M4 [+14%] would increase cash flow (due to reduced borrowings) from $59M ($70M - $11) to $65M ($70M - $5M) [+10%] if nothing else changed. So, not so bad.


But...


The aim of the capital raising is (all together now ):

To increase the build rate, and thus cash flow and profit as they gear up to being a growth company from the mess that they have been.

Best Wishes
Paper Tiger

[forest]

Deducting the interest but not the one offs the increase of shares from 184M5 to 210M4 [+14%] would increase cash flow (due to reduced borrowings) from $59M ($70M - $11) to $65M ($70M - $5M) [+10%] if nothing else changed. [I]So, not so bad.

An increase of a fc 10% in cash flow was seen as a positive by the market and a poster on this side. If one factors in the 14% increase in share on issue I would consider this a down grade for now.

I agree with you Tiger that over time the equity raising might be very positive but then it could b ???