Q: Despite the good results recently, MG is coming down. Would you know why and is it good time to add. Long term hold and reasonable exposure. Thank you.
5i Research Answer:
MG is down 1% YTD and up 46% in a year. There has been no recent negative news. But the sector is sensitive to interest rates, and with the world situation rates are not likely to come down as soon as previously expected. Still, at 7x earnings we would be OK adding, keeping position size reflective of the company's inherent cyclicality.