MHM Automation - MHM

[Lizard]

Could have sworn there was an MGL thread somewhere out there, but all the search would give me was the rather ancient BWY thead:
http://www.sharetrader.co.nz/showthr...Industries-Ltd

New management team in 2011 seem to be pulling things back on track. Combined with strong dairy industry demand (new production lines), potential residential building demand increase, growth from acquisitions (Titan Slicers) and launch of new products (e.g. today's announcement - previously foreshadowed - of North American licence agreement for the S-Clave technology). All starts to look like a baby version of SCT.

Okay, so 21 cps ($58m market cap) is probably more than a little overpriced... compare with SCT at $89m market cap and generating a $5m+ NPAT, whereas MGL managed just $0.8m. However, licensing revenues have the potential to drop through to bottom line rather nicely, so could provide a bit of a boost - especially should S-clave consumables start to kick in around 3-4 years away.

Should be a good first half due to strong order book and initial licence fee, so could be worth a short term trade for now, but otherwise just a heads up as one to keep a lazy eye on. AGM tomorrow may give further guidance.