Why I quadrupled my MCGC Stock Ownership This Week - Part II
A) Tells me that a sophisticated credit institution recognizes that MCGC has turned the corner and because there is real value in the business, it is willing to lend to the company on an unsecured basis.
B) Management's guidance regarding loan originations in 2013 indicates that the business opportunities available to MCGC are significant and there is market acceptance for the company. Additionally, if management is able to put the money out to credit-worthy borrowers at good spreads, MCGC’s operating situation should further improve.
Both of these developments could result in MCGC trading at a premium to book.
One final thought: Rick Neu.
Rick Neu was CHB of Dollar Thrifty, when that company traded as low as 62₵/share.
The company was subsequently sold for $85/share, with Rick Neu still involved in the company. Maybe Rick Neu can work his magic with MCGC.
I must agree with you. I was in this company in low 4's and up and down for while and got out at low 5's many months ago but kept it on my watchlist. I put an order in for 4.37 as a good entry point and it was executed last week prior to earnings. After earnings I bought 15000 more at 4.82 since MCGC is under book value and I feel it will break out to a new high. It broached 5 and should pass 5.38 then up over 6 with no problem. It will then consolidate and wait to see earnings going forward. I agree with you, the company finally is in a good financial spot which we definitely need. I believe it is being accumulated by brokers working with analysts and will contiue to go up. Nice little perk with the divy. Good luck to all !!