Business News

NML proposed as a HOLD rating

Aug 11, 2009
We hold firm to our forecasted EPS for the year end at $4.65. It is advised that investors be cautious when analysing the fundamental soundness of Neal and Massy versus the technical market forces driving the market. Given that our local stock market involves not mainly sophisticated investors but also retail investors, share prices are being based on reactions from perceived poor performance (compared to last year), instead of estimates.

If NML were to approach the $4.68 range (plus or minus 5 cents), they would easily be in the positive $55.00 bracket. As a result, value investors should be looking at NML as a long term buy, despite the potential for short term hits.

NML's board appears nonchalant regarding the impact of BS&T's acquisition and that of the new shares issued on the bottom line growth. They are confident that the new entity can be transformed into a profitable one. Conversely, we expect a slower increase and are of the opinion that this share should be given a HOLD rating, with a view to long term buying.



This release is issued as a matter of information and interest only and should not be construed as specific or relied upon for investment decision-making without seeking professional investment advice.



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