Q: Is MG a "safe" contrarian play yet? Thanks Ron
5i Research Answer:
While the momentum certainly is not great, MG is looking very cheap at 6.7x forward earnings. We would not say it is a safe bet that it will immediately recover, but it definitely has the potential/capacity to do so and the dividend yield at 3.5% looks attractive. We think buyers could cautiously step in but they will need some patience while the market works through its current 'oh no there is going to be a recession' fears.