Mycron cash : 39m, loan : 101m+117m+6m , net debt 185m Prestar cash : 42m, loan : 200m+13m , net debt 171m If Mycron can trade at PER 8, Prestar can do it too. Before cold eye buy it.
Prestar provides Dividend - i think they are aiming at least 3 cents per annum. Mycron so far no...
Posted by PlsGiveBonus > Dec 14, 2016 06:00 PM | Report Abuse
Mycron cash : 39m, loan : 101m+117m+6m , net debt 185m Prestar cash : 42m, loan : 200m+13m , net debt 171m If Mycron can trade at PER 8, Prestar can do it too. Before cold eye buy it.
If we study the figures above, one important ratio that is showing a stark difference between the two is the RPS and P/RPS. I value P/RPS more as it accounts the current price given to each share to the RPS value. This is a powerful ratio.
The difference between Mycron & Prestar on this ratio is almost 76% (from 0.44/0.25).
Meaning all other variables staying the same, if the NP Margin of PRESTAR and MYCRON going forward are to be the same.... Prestar's price has be priced 76% higher than its current price to be fairly priced relative to Mycron in terms of P/E.
Think about the maths carefully.
I see TTM NPM of Mycron is 5.22% and Prestar at 4.47%....guess all it needs another 1% rise in its NPM going forward. Unless of course Mycron has some big potential to improve its margin going forward which we are currently not aware...
i) The Forward Twelve Months (FTM) NPM of Mycron and Prestar are to be the same and,
ii) Mycron's share is currently fairly priced considering its future earnings,
Prestar has to be priced 76% higher than its current price, i.e at 1.50 such that at the end of this future twelve months (FTM) both Mycron's and Prestar's TTM P/E ratio will be the same.
One has to ask them self and think about (i) on the future NPM prospects & (ii) if Mycron has some truly hidden competitive advantage relative to other steel manufacturer being a midstream player against a downstream player above... and see if this "76% difference" is justified.
Frankly speaking , if not Melewar pulling Mycron's leg; i dont mind to have both ( even more like to Prestar ). I believe both has different strenght and role in their own market.
Final, counter not to be ignored is Emetall .
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Posted by yeekarwai 95 > 2016-12-14 17:27 | Report Abuse
almost 5% increased in price not enough?