Nine Entertainement (NEC) and Metals X (MLX)
Hi James, Is NEC under value after paying off special Dividend ? Is Metal X over value base on earning forecast ? Thanks for your insight. regards, John
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Answer
Hi John,
Two very different companies but both interesting at the current juncture:
Nine Entertainement (NEC) saw its shares gap down last month after they paid a 49c, fully franked special dividend from the sale of its Domain holding. However, it was also sold off in August after it announced the special dividend, the market clearly wanted/expected more at the time.
- We remain long and bullish NEC around the $1.27 area, and we do think it is on the cheap side, with plenty more options now courtesy of the DHG funds.
Metals X (MLX) is currently profitable driven by its operations in tin and gold mining, particularly its 50% stake in the Renison tin mine in Tasmania and gold mining activities in Western Australia. In FY25 it enjoyed NPAT of $52.95mn, compared to $14.87mn in the prior year. However, revenue is set to drop noticeably in FY26 with improvements down the track when it’s “Rentails Tin Project” comes online.
- We wouldn’t call MLX to0 expensive but perhaps too hard above 80c. Not one we know that TBH.
