On Friday the 27th of October, our MP1 position was closed out following their quarterly update.
The stock gapped down on the open off the back of record $15m earnings before interests, tax, depreciation and amortisation (EBITDA). This was $14m more than the 1st quarter for FY23.
Commenting on the release, Management said “record EBITDA and positive net cash flow in line with guidance…has set the tone for the year”.
Despite no change in guidance, the stock took a hammering and closed 16% lower come end of day. Subdued quarter on quarter growth in total customer services numbers looks to have played a role coupled with panic selling. That said, brokers such as Ord Minnett and Goldman Sachs still see MP1 with a 12-month upside of 25%.
The fall in the share price shows why it is so important to have stop losses in place.
Closed Position
Number of shares purchased: 400
Initial buy price: $11.62
Exit: $10.10
Closed Loss: $608.00