Mega Brands Inc MBLKF

bmo analyst downgrades MB

[Godfather1]

The BMO analyst downgraded MB today. I was reading the report  and he basically says that you should take gains as the stock is up 176% since last year and that the easy money has been made. He said that if the stock price is going to continue rising there is zero margin for error by management. I think thats why the stock sold off a bit today.  Anyone have any thought on the analysts comments?

 

GLTA

[nerzaa]

funny he initially targeted mb at $1.00 after recap back in 2010, which is $20 after the split. is he saying the recovery right now is weaker than what it was in 2010? if anything, mb is more on target to be back at $500M than ever before, which is likely to be reached before the original plan date of 2015. how could someone stick his neck out during the most risky period (i.e. right after

[Godfather1]

Ya I dont agree with him either. But i think he is just saying to take money off the table if you bought at $6. I dont think that would be a bad idea to do that however, I still think the MB is making strides and I think the value of the business will continue to increase. I dont know forsure, but I havent heard that Fairfax or Francois Chou have sold any of their shares yet. I can easily see this

[nerzaa]

forsure, FFH is in this for the long run. Look at this from another angle, if you are FFH, why would you convert you warrants into shares to buyback debt, which is also owned by you? Keep in mind, they didn't do it cashlessly. Another way of asking is, why would you exchange fixed income from debt interest for equity unless you believe doing so will make more money? think about that. the stock

[llennn]

I would have agreed with the analyst 3 or 4 weeks a go, but it seems like this company has a way of generating forward momentum, I don't think you can use the 6$ mark to get the 170 ish% as the line is 10 , this is all parties average for the most part, there fore the % gain is closer to 50% since reca