GREY:MIGGF - Post by User
Post by
lr7on Jun 29, 2008 4:23pm
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Post# 15242565
What will drive MGO upwards for now
What will drive MGO upwards for nowis capacity increase, and we should start seeing capacity increases impacting results significantly starting Q2. As a result, MGO has major upside.
In the past year we also had capacity increases, but MGO was issuing new shares as fast as it was increasing capacity. As a result, EPS numbers weren't great. MGO has finally reached the stage where capacity increases will jump much faster than the increases in outstanding shares.
There's no point comparing the POT or AGU charts to MGO's because the POT and AGU share prices are being driven by other factors. HF has much more in common with MGO in that its share price is also being driven by capacity increases, although HF's chart also is not strictly comparable because each company has its own timetable.
MGO is not a complicated company to understand. Just read its annual report and the subsequent updates to its outlook.