MPG - Metro Glass

[Beagle]

Most professional investors and analysts will simply reverse any change from this new accounting standard when doing their analysis.

[King1212]

So.. beagle.. would u buy MPG? 10000 shares only $2700...black n white on roulette..

[Lease]

Most professional investors and analysts will simply reverse any change from this new accounting standard when doing their analysis.

Hahahaha, Beagle, when I say MPG is better off by adopting IFRS 16, you say most professional investors and analysts will simply reverse any change from this new accounting standard. I think if MPG is worse off(like HLG), then you will say the new accounting standard can't reverse.

[Beagle]

So.. beagle.. would u buy MPG? 10000 shares only $2700...black n white on roulette..

Other opportunities are preferred.

Hahahaha, Beagle, when I say MPG is better off by adopting IFRS 16, you say most professional investors and analysts will simply reverse any change from this new accounting standard. I think if MPG is worse off(like HLG), then you will say the new accounting standard can't reverse.

These changes are dreamed up by accountancy boffins with too much time on their hands who haven't leaned how to waste it on forums like this one

[Leemsip]

Change to ifrs doesn't have any p&l effect. Just puts the lease on the balance sheet and you then expense it off as you pay rent...

[Lease]

Change to ifrs doesn't have any p&l effect. Just puts the lease on the balance sheet and you then expense it off as you pay rent...

It does have P & L effect. In case of MPG, adopting IFRS 16 increase EBIT by $1.7m.

[Beagle]

It does have P & L effect. In case of MPG, adopting IFRS 16 increase EBIT by $1.7m.

Fresh all time low...life is tough. Maybe the real impact of the IFRS change is known by people in the know. Yes increase in EBIT of $1.7M but...extract from 2019 results presentation

* The estimated impacts of IFRS 16 accounting standard changes on FY20 results were communicated in the FY19 Annual Report. The changes are expected to reduce lease costs by $7.2m, increase depreciation by $5.3m, increase interest expense by $3.0m, and reduce net profit before tax by $1.1m.

You rather "conveniently" left out the interest cost impact. See page 16 from the results presentation here http://nzx-prod-s7fsd7f98s.s3-websit...180/304158.pdf

Just as well most professional investors and analysts will reverse this change out in their analysis isn't it

Half year results presentation makes it clear on page 11 http://nzx-prod-s7fsd7f98s.s3-websit...825/312604.pdf that net profit before tax for the current half was $0.6m lower which impacted Eps down from 4.5 cps to 4.2 cps.

[Lease]

Fresh all time low...life is tough. Maybe the real impact of the IFRS change is known by people in the know. Yes increase in EBIT of $1.7M but...extract from 2019 results presentation


You rather "conveniently" left out the interest cost impact. See page 16 from the results presentation here http://nzx-prod-s7fsd7f98s.s3-websit...180/304158.pdf

Just as well most professional investors and analysts will reverse this change out in their analysis isn't it

Half year results presentation makes it clear on page 11 http://nzx-prod-s7fsd7f98s.s3-websit...825/312604.pdf that net profit before tax for the current half was $0.6m lower which impacted Eps down from 4.5 cps to 4.2 cps.

OK, mate, you are right on that IFRS. But fresh low don’t concern me, rather I’m happy to accumulate more.

[BlackPeter]

OK, mate, you are right on that IFRS. But fresh low don’t concern me, rather I’m happy to accumulate more.

Take care mate - its a dangerous world out there ; For MPG in its current situation it might be worthwhile to remember the old adage "never invest money you can't afford to loose".

[Snoopy]

Fresh low don’t concern me, rather I’m happy to accumulate more.

Lease, I am impressed with your thorough investment approach and the fact that you are prepared to look through the headline gloom and crunch some numbers. Your position taking in MPG may turn out to be very savvy indeed and I say good luck to you.

I get the idea of having all your eggs in one basket and watching that basket very closely as an investment strategy. I am not saying this is what you are doing, but sometimes it is best to watch a couple of baskets closely at once to make sure you don't lose your perspective. So I am going to suggest you take another look at STU. Yes I checked your posting history and found you did give it the brief once over in September 2019. But the price has come back since then, which changes the risk equation going forwards. The reason I am suggesting STU to you is that like MPG it has received a hammering in the current building boom. But it doesn't have the debt issues that MPG has. All I am saying is don't put all your energy into one prospect when there are other similar prospects out there.

I learnt this hard lesson myself when investing in Arrium on the ASX in recent years. A steel producer, the key was the trade off between market price for product and extraction costs. It was always going to be a tight run balance and if management had stuck to their guns I believe Arrium would still be trading today. However, the board lost confidence and thought they might go bankrupt if certain price trends continued. Those price trends did not continue with hindsight, but management tipped the whole thing into receivership anyway. And that shows you as a shareholder can understand a business very well and be right, but still lose. Best of luck with MPG.

SNOOPY