Is the market getting it wrong on NEC?
Hi MM, NEC is a stock I have been watching for some time, toying with whether to enter. I note that, as of your last couple of updates, MM sees value in NEC and thinks it is cheap, mentions its fully franked yield and remains bullish and long NEC in its Emerging Companies Portfolio. Aside from MM, I have seen mixed commentary for NEC, some negative but also commentary that it may be a takeover target. As for the chart/price action, the price is trending down strongly, at multi-year lows and continually making new lows, which is a little worrying. Given the above, I guess I am seeking an update and a bit more detail behind MM remaining long and bullish on NEC. Do you think it’s a case of the price action warning of something quite negative behind the scenes - or that the market is dealing with NEC too harshly (as you said earlier this year) and undervaluing NEC and/or not properly understanding or appreciating positive aspects of the business/company?
