Q: Your thoughts please on MDI going forward thee next three years
5i Research Answer:
MDI is up 24% YTD and up 107% in one year. The balance sheet has net cash of about $50M, and earnings growth looks very solid. Its customers are flush with cash due to the sector surge. The last quarter missed estimates but estimates have been rising sharply since. Over three years, EPS is expected to go from 26c this year (April year end) to 84c next year and $1.29 the year after that. IF it hits these numbers the stock is cheap and should do well. We would give it a 'decent buy' rating, but not a 'load up the house buy' rating.