Australian (ASX) Stock Market Forum

MMS - McMillan Shakespeare

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Hodgie said:
I dont think the Coalition being sworn in will have that significant an impact on the market. The outcome is already expected.
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We shall see on Monday just how priced in a Coalition victory is for the MMS share price.

We really need to hear more from MMS themselves instead of speculating the outlook for the company moving forward. They are playing it close to the chest it seems until uncertainty about the future is removed for them in their own eyes.
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MMS has clearly stated what they can pre-election...
"The Labor Government’s surprise announcement on FBT on motor vehicles is having an adverse affect on our business, at least in the short term. If the Coalition wins the election, it would appear from their policy statements, we should be able to move back to business as usual."

And Tony Abbott today in his open letter to the car industry has confirmed this outcome...
"ASPIA has noted the Open Letter to the Car Industry from Tony Abbott and Joe Hockey confirms they will "not proceed with the Labor Government's poorly thought through changes to Fringe Benefits Tax arrangements on cars." In the event the Coalition is elected on 7 September, we encourage all stakeholders, including employers and employees engaged in salary sacrifice programs, to urgently and immediately return to normal trading activity in order to repair the damage done by this ill-considered Labor announcement"
 
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twojacks28 said:
Currently $12.55 you beauty.

MMS has already said they will make no announcement until the election result is known.
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MMS finished up $1.03 (8.5%) on the day. The market is only now fully pricing in a Coalition victory with some headroom left IMO. I would not be surprised to see the price settle in between $14-15 on Monday.
 
FxTrader said:
MMS finished up $1.03 (8.5%) on the day. The market is only now fully pricing in a Coalition victory with some headroom left IMO. I would not be surprised to see the price settle in between $14-15 on Monday.
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Personally would be very happy to fade a large gap up Monday.

Sold out all my stock today too. Been a great ride... even if i hopped off the middle for a while :p
 
FxTrader said:
MMS finished up $1.03 (8.5%) on the day. The market is only now fully pricing in a Coalition victory with some headroom left IMO. I would not be surprised to see the price settle in between $14-15 on Monday.
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I'm thinking the same range. Somewhere between $14-15. I will sell out a few days after election once it has got through to all markets.
 
If the coalition get voted in, I'd expect there to be a bit of hype in MMS for the first few days, pushing it a bit higher; IMO around $14.50-15. Soon after, it'll slow down and possibly come down a bit as people exit. Cant really see it returning to $18 but who knows :2twocents
 
db94 said:
If the coalition get voted in, I'd expect there to be a bit of hype in MMS for the first few days, pushing it a bit higher; IMO around $14.50-15. Soon after, it'll slow down and possibly come down a bit as people exit. Cant really see it returning to $18 but who knows :2twocents
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Those are my thoughts too. I'm betting on the hype of the first couple of days, so will sell then, because I don't see it coming back to $18 anytime soon.
 
Tyler Durden said:
Abbott won.

Now, we all know the market can do crazy things...so what if the SP actually goes down on the news?! :eek:
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It wouldn't surprise me, the market had already priced in the win by Abbott, it may drift lower until MMS announce about the dividend and that could potentially see a big fall in share price again.
 
galumay said:
It wouldn't surprise me, the market had already priced in the win by Abbott, it may drift lower until MMS announce about the dividend and that could potentially see a big fall in share price again.
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I seriously doubt the MMS share price (previously trading on a 4% yield the last two years) is going to tank because of a lower divided (I would prefer they pay no dividend given their ROE). When the share price recovers to around $15 then I would expect a drift from there until we get clarity of trading results from MMS for the next quarter. MMS is now in a stronger trading position due to weaker rivals likely to lose market share to MMS. If by some miracle the share price did drift lower in the short term I will be adding to my position - MMS is simply a great business.
 
The business has been exposed as highly dependent on a stream of income that is out of it's control.
MMS will also have been treading water and slipping with respect to existing business with the uncertainty.
It's potential clients will have implemented alternative strategies and found different ways of doing things in the light of the legislation risk. So the potential for MMS to have slowed and altered the short term is real even with no change to the legislation.
It will be hard to see this company being seen as such a great business, now it is clearly exposed to be living the easy life off the government, off us actually.

The liberals should taper this policy not kill it as the idiot tried to do.

The short term risk is probably more of a drift to the upside.
Longer term - speculative.
 
notting said:
The business has been exposed as highly dependent on a stream of income that is out of it's control.
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The business model was never hidden, it was no secret that salary packaging was the mainstay of the business. The legislative risk was there and remains but it's hard to imagine any future Labor or Liberal government revisiting the FBT treatment for salary packaged vehicles for many years to come.

It's potential clients will have implemented alternative strategies and found different ways of doing things in the light of the legislation risk. So the potential for MMS to have slowed and altered the short term is real even with no change to the legislation.
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Getting and retaining clients won't be an issue for MMS, there is no reason to not continue with business as usual for salary packaging arrangements.

It will be hard to see this company being seen as such a great business, now it is clearly exposed to be living the easy life off the government, off us actually.
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Nonsense, the reason MMS was trading at a premium price pre-announcement was the excellent underlying fundamentals of their financials and future prospects.

The liberals should taper this policy not kill it as the idiot tried to do.
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The Libs won't touch FBT policy and have said so quite emphatically.
 
FxTrader said:
The business model was never hidden, it was no secret that salary packaging was the mainstay of the business. The legislative risk was there and remains but it's hard to imagine any future Labor or Liberal government revisiting the FBT treatment for salary packaged vehicles for many years to come.


Getting and retaining clients won't be an issue for MMS, there is no reason to not continue with business as usual for salary packaging arrangements.


Nonsense, the reason MMS was trading at a premium price pre-announcement was the excellent underlying fundamentals of their financials and future prospects.


The Libs won't touch FBT policy and have said so quite emphatically.
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Correct weight. Will be up tomorrow marching towards $14-15.
 
FxTrader said:
The business model was never hidden, it was no secret that salary packaging was the mainstay of the business.
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No one said the business model was hidden. What was not in the forefront of peoples minds was the dependency on government rebates which the company has no control over.
But yeah I think what you said well and truly makes it a risk worth sticking with for the moment.
Well put.
 
skyQuake said:
Buy the rumour, fade the news...
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I deadset came on here to post the same thing!

It was looking good for the first 5-10 minutes then took a dive

Unfortunately I fell for the trap :frown:

EDIT: it looks like its clawing its way back
 

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