We are holding 5% in NCM, a position that has struggled over the last 18 months but it’s finally coming good aided by February’s all-scrip $24.4bn bid by Newmont (NEM US) – that bid of 0.38 shares for each NCM share is only worth $28.90 this morning, it’s our opinion the US suitor will need to offer in excess of $30 to vaguely excite the board and existing shareholders like ourselves.
- We like NCM with our initial target of $29 now only 7% away but in the bigger picture, we can still see a test of its 2019/20 high, another 40% higher.
- Depending on M&A activity we may trim our position ~$30 due to our major sector holding but we’re in no hurry.
MM is bullish on NCM both short and medium-term.
Add To Hit List
