MFS - MFS Limited

[chicken8]

i'm not sure whats a good price for MFS anymore

but i just tripled my holdings in MFS at $1.30

it had to be done

 

[Hephaestus]

Did any of you listen in on the teleconference announcement today? Was it any different to anything else in the news?

Do MFS really still have that $300 million in cash lying around? All i can say is down 80%, and considering a massive purchase in preparation for a half decent bounce.

I would like to get my hands on some detailed financial info.

 

[sparky]

At 1.3 this seems like a good buy, only a month ago they were at close to $5. It seems like the mention of debt has every running, what do people think? What else can go wrong? or is there something we don't know...

 

[rgdk]

Okay, I have some more information that explains the sell off which is very much related to debt.

The guys at Rivkin have just called it a sell at current levels based on the following: If the compay is truly travelling well, then why the need to recapitalise? Either as a reaction to current market sentiment or because there really is a problem.

They also stated that many others in the teleconference shared their sentiments.

I can't say what really is the case but I would probably disagree with the sell recommendation given the current proposal on the table from CIY. Of course if todays announcement sends CIY reunning then that's another story.

This is causing me alot of pain at the moment, but I certainly can't see a huge rally without some catalyst. Or if there is truly nothing wrong, then the market realising and becoming confident in that will take some time IMO.

Gee, selling out at 3.18 looks attractive now!

 

[Prospector]

This is causing me alot of pain at the moment, but I certainly can't see a huge rally without some catalyst. !

I am hurting with you rgdk! To think I almost sold a few days ago. Surely the fundamentals are still there but gosh their timing sucks, but then again, maybe that is part of the problem too.

 

[The Mint Man]

I am hurting with you rgdk! To think I almost sold a few days ago. Surely the fundamentals are still there but gosh their timing sucks, but then again, maybe that is part of the problem too.

I wondered if you ended up selling this morning as I remembered you saying that you were considering selling. what can I say....

 

[Prospector]

I wondered if you ended up selling this morning as I remembered you saying that you were considering selling. what can I say....

In a rational moment, I always think back to Ansett. Once Ansett disappeared, then anything can happen. I originally had BRK shares, then when MFS appeared on the scene I stuck with them. Had to vent and sent them an email! Oh well, as if they could care. It is too late for me to sell now, maybe it will improve when the overall market improves. Lucky I am not planning to retire soon.....

 

[The Mint Man]

It is too late for me to sell now, maybe it will improve when the overall market improves. Lucky I am not planning to retire soon.....

I think most would agree there, or at the very least wait for a bounce to recoup some loses then get out.

 

[ithatheekret]

I think the model needs revamping , the current debt load , the last time I looked it was above $3 and I wouldn't touch it then , still won't to be honest , the risk-reward ratio is not enticing enough for me . I'm looking for something under $1 .

 

[GreatPig]

I am hurting with you rgdk!

Bad luck, Prospector. First Bradken and now MFS. I hope you weren't holding Centro as well.

I've fortunately missed the big drops, except for a bit in CVN the other day, but am mostly just dabbling at the moment with a small amount of funds anyway. And that's more just for something to do and the experience than actually expecting to make much money.

Cheers,
GP

 

[Prospector]

Bad luck, Prospector. First Bradken and now MFS. I hope you weren't holding Centro as well.

Cheers,
GP

Well, there is a silver lining, isnt there

At least with Bradken, even though such a bolt out of the blue, I was still able to sell for a (much reduced) profit so I probably dont deserve any sympathy for that. But MFS, well, gulp.....I have held them through BRK for years, and nothing like this has ever happened before - they seem so clued up. COU a few days ago experienced the doldrums but has picked up since (well, make that not falling as much anymore) so maybe

has become my favourite icon in the last fortnight

 

[rgdk]

My last for the day before I lie down and take a panadol... or something stronger

The biggest criticism I think the analysts have with the ann today is that it is completely wishy-washy with respect to what exactly the proceeds from the entitlement issue will be used for in order to dispell any misinterpretations. Surely MFS must have anticipated the reaction to an announcement of this nature with such limited substance.

I would have to share the analysts' criticism Pretty bad corporate relations management IMO!

 

[UPKA]

Okay, I have some more information that explains the sell off which is very much related to debt.

The guys at Rivkin have just called it a sell at current levels based on the following: If the compay is truly travelling well, then why the need to recapitalise? Either as a reaction to current market sentiment or because there really is a problem.

They also stated that many others in the teleconference shared their sentiments.

I can't say what really is the case but I would probably disagree with the sell recommendation given the current proposal on the table from CIY. Of course if todays announcement sends CIY reunning then that's another story.

This is causing me alot of pain at the moment, but I certainly can't see a huge rally without some catalyst. Or if there is truly nothing wrong, then the market realising and becoming confident in that will take some time IMO.

Gee, selling out at 3.18 looks attractive now!

I think they needed the cash to buy out some of CNP's unlisted property fund... don't think it has anything to do with the debt issue, if it is, then the directors must have big ballz to hide it from the public...

 

[YOUNG_TRADER]

omg I saw this fall to $1 but then saw it recover to $1.50, now its back down to 80c what the hell is going on?????????????????

 

[The Mint Man]

omg I saw this fall to $1 but then saw it recover to $1.50, now its back down to 80c what the hell is going on?????????????????

I tell you whats going on #$$@$%#@$# were gona be on the news, thats what. Were just like the 16 year old who threw a party and trashed everything

EDIT: only for some this has cost alot more than $20,000 damage. I feel for them, my exposure is nowhere near that

 

[robert toms]

Incidentally all of the MFS spin offs are taking a hiding today...HFA,MFT and MPY.
MPY announced a proposed 12 cent per share payout for the current year...at a SP today of 50 cents that is 24%...I think that there will a revision with that one.
MPY just borrowed for some operating money,surely theirs is a good cash flow business...I went to their Siam Ocean World in Bangkok a couple months ago,the first such facility that I have been to.The entrance fee was equivalent to $25 Australian...only affordable to the well heeled over there.
Very impressive facility ,but how profitable is it ?

 

[Pager]

I bought in at $3-25 but just sold half the parcel at $3-60.

If it starts going back down i will dump the rest at breakeven.

I think that's called "by the skin of my teeth"

Makes you wonder if there are any other horror story's out there about to announce bad news, there coming a bit too quick for my liking

 

[UPKA]

This is one of the worst day in my short trading career... and certainly didn't see this coming at all, I always calculate the risk im taking when entering a stock, this is just out of my world... good luck all holders...

 

[roland]

well, just in - Barclays dumped 10,500,000 MFS shares - they got out at $2.47 - just horrible stuff - I'm down 26% - probably not as bad as some, just add me to the pile of mourners out there.

 

[rgdk]

Well where to from here?

Unless Michael King can deliver something pretty special this year I have no idea.

Judging from this report of the teleconference this morning it sounds like he has no institutional supporters any more >> MFS's gruesome hour

As much as it pains me to say this, I can't see any major upside for this one aside from a dead cat bounce - on which I will be trying to reclaim significant losses. Time to recover what I can and look elsewhere...