MPG - Metro Glass

**Beagle** · 19-08-2019, 05:18 PM

They have no business expanding into Australia when their N.Z. operations were performing so poorly. Market is effectively calling management out to get rid of the cancer before it spreads. You'd be a "brave" investor to be holding this pup.

**winner69** · 19-08-2019, 05:31 PM

Originally Posted by Beagle

They have no business expanding into Australia when their N.Z. operations were performing so poorly. Market is effectively calling management out to get rid of the cancer before it spreads. You'd be a "brave" investor to be holding this pup.

Instos demanded they grow ....and coerced them into that Australian acquisition

That’s how the corporate game is played ...and more often then not it doesn’t play out as expected.

**winner69** · 19-08-2019, 05:37 PM

I’ve never worked out if one of the earlier supporters of Metro in Harbour Asset ever made money out of them.

**Balance** · 19-08-2019, 05:54 PM

Market cap has been going backwards fast - now well below bank debt so things are going to happen very fast from here imo.

**Beagle** · 19-08-2019, 06:15 PM

Some very, very creative accounting went into the IPO process. Massive amounts of goodwill created out of thin air based on very creative growth assumptions. Years later the company had to hire outside consultants to tell them their growth assumption were complete corporate B.S., something I could have told them for free LOL. This company has consistently over promised and under delivered. No wonder the CFO wants out...I would if I was him, try and save the most microscopic amount of reputation while there is some left to be saved.

Share price reaction since the annual meeting tells you shareholders are woefully underwhelmed with the companies go forward "plan", if you can call it that.
This company fully deserves the markets contempt. Issues going forward with demand caused by the new competitor fundamentally undermine its business case.
You'd have to be very very "brave" to continue to hold. Not at any price as far as I am concerned.

**silu** · 20-08-2019, 11:10 AM

MC of $55.6m. At what price will they start to look like a worthwhile punt? Maybe another 10% drop and I'm willing to put some money in it.

**RupertBear** · 20-08-2019, 02:28 PM

Geepers I am well underwater with this one

Once again I have held on too long not wanting to sell for a big loss but it just keeps going down and the loss just keeps getting bigger! I must say I didnt think it would go down this far. Yikes what a silly bear! It is tempting to buy more and average down but I suspect that would just add insult to injury. Note to self, dont hold in a downtrend and dont buy in a downtrend!!

**couta1** · 20-08-2019, 02:41 PM

Originally Posted by RupertBear

Geepers I am well underwater with this one

Once again I have held on too long not wanting to sell for a big loss but it just keeps going down and the loss just keeps getting bigger! I must say I didnt think it would go down this far. Yikes what a silly bear! It is tempting to buy more and average down but I suspect that would just add insult to injury. Note to self, dont hold in a downtrend and dont buy in a downtrend!!

Both buying and holding in a downtrend are fine as long as it's the right kinda stock like A2.

**JeremyALD** · 20-08-2019, 02:41 PM

The MC is pretty insane for a company making 15 NPAT, but the future looks quite bleak. Imagine if they got back to the 7.5c dividends - would be over 20% a year lol