A couple of companies I own stock in reported over the last week or so, so I thought I’d do a quick post on a pretty straightforward one – MacMahon Holdings.
Here’s the annual report. It’s a mining services company, so you’d expect it to be pretty cheap.
Current market cap is $102m. Net cash is $74m.
So you’re buying all the equipment and contracts etc. for $28m. The company has PPE of $141m, after $202m of impairment charges this year.
So you’re buying PPE at about 20% of its reported value after a pretty huge writedown.
“Underlying profit” for FY2015 was $10m.
Cheap enough for me, but it could be a rough ride for a year or two.
Edited to add: Insiders bought 3.2m shares over the last year, although in total this is probably only about $200k worth.
fund of well-conceived investments 