Wk 11 close, thoughts etc..18 Mar 2023 12:11
With only 30 trades this week
MSi buyers have been on strike. True to current form the shares eased 10 to 525 which in part explains the lack of interest and two-way business. This is not helped by 40p spreads, a sure disincentive to buy.
Currently the stock is underperforming Aim and the wider mrkt by some margin. Last week c.30,300 shares were traded, sells outpacing buys by 1•65:1 (61%) on the buy/sell ratio. No doubt pessimism rules but last i looked the patient is not in intensive care but looking rather chipper!
While investors have a negative tilt on MSi the shares struggle to move forwards trading among the also rans on Aim..... down 19% this year.
Warranted or not it seems the mrkt has decided the future of the stock is not as bright as some holders think. I don't subscribe to that view.
With a near flawless balance sheet MSi is debt free, pays a dividend and expects to report material increases in revenues, operating earnings and roce this year. I mean, ffs you'd want one of those in your Christmas stocking now and again.
I'm prepared to wager MSi is virtually certain to be worth much more in the years ahead as innovation, productivity gains and sensible use of capital will see to that. If not mispricing MSi and compounding should do the trick.
It makes you wonder why the mrkt values companies with debt, no dividends and little revenue to be so much more a worthwhile investment? Is it because Management
are tempted to 'make up' the nos to please fee hungry Brokers and their clients?
Believe me over time the share price will revert to realistic intrinsic value or as WB once said "a rising tide lifts all boats." My interpretation, is he meant beaten down stocks will have their day in the sun...or once the mrkt catches up with events. Make sure your on your marks ready to go.
Morning all, have a good weekend.
Sign In
Follow the stocks
