MBE reported solid growth, but earnings per share was potentially down on what the market was expecting. I was expecting more like 1.5c, but it came in at 1.2c. This was partly due to the treatment of tax and partly due to the need to fund growth. The market still prices it on its current earnings and doesn't give it much credit for the future growth potential. If their international expansion matches the Aussie business then good times are ahead. The UK will be the first hint as to whether they will be successful. This year should provide some good indications.
PRO reported pretty much as expected. They had a hiccup last FY giving guidance that proved a little too bullish. The company is growing well, and the SP has been rerated with limited upside now priced in. Their commentary was encouraging and this year could see the SP resume the upwards trend. Q1 results will be interesting - the company has already hinted they should be strong. Earnings per share were a little bit lower than I expected due to amortisation which I assume is a result of the eMite purchase. Cashflow from operations was very good coming in at 4.9m (7.7cps).
GLH resolved its contract dispute and it was a cracker. $1m per year locked in until 2020 and a lesser amount following that. This resulted in good revenue and 4.2cps in earnings. The company also increased is expenses significantly to position itself going forward. Currently on a trailing PE of 11 with further growth expected this FY.
MOY - I like gold in the current financial environment. MOY is significantly undervalued compared with other miners. It is a turnaround story. Further positive drilling results will increase life of mine which appears to be what is holding back the SP.
MGX - it's a long term game and the good run the SP had has halted for now. I am still considering putting the money to use elsewhere that might have more immediate upside.
ADA - I am glad I sold as the market was expecting a little more than it delivered. The only reason I sold (in the 3.30s) was I thought the SP was getting ahead of itself. I still hold half of my original purchase in my main portfolio. I like the prospects of the company
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