Certainly the 'halting' of a dividend should be taken as a bad sign. We have seen 'temporary' halts last for multiple years. EPS of 24c beat estimates of 10c; Revenue of $25.6M beat estimates of $22.6M. EBITDA of $6.5M was 33% better than estimates. MCB wants to preserve its capital due to the mid East conflict. Two-thirds of the backlog is destined for the region. MCB has also found about $2M in cost savings with some job cuts and other measures. The balance sheet is not really at all bad right now, but cash flow has turned negative (12 months). This is not a disaster, but its small size adds some risks, and while the conflict is ongoing investors will likely avoid it. We would consider it a HOLD as it is very cheap at 6x earnings, and this conflict will (eventually) end.
5i Research Answer: