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I have no idea about the profitability on MTQ's current order, and the profitability of their orders over the next 12 months or so. Unless you do, I'm not sure if it is prudent to extrapolate a quarter's earning into the future.
And if you can't be certain about profitability, any talk about dividends is premature. Are we counting the chicks before the eggs are even laid?
Perhaps the author of the above article has insights on the profitability question. If so, sharing those insights may be more helpful to his cause. A lot of what was written must be acknowledged as speculative (oil price may go up, turnaround may continue, dividends may be reinstated).
Based on current share price, MTQ is now valued at book (1x p/b). For a company which has just only returned to profitability, the market seems very optimistic of its future prospects. Hence, I think it might be a stretch to say that the valuation -- based on the company's present financial condition and performance -- is attractive.
And if you can't be certain about profitability, any talk about dividends is premature. Are we counting the chicks before the eggs are even laid?
Perhaps the author of the above article has insights on the profitability question. If so, sharing those insights may be more helpful to his cause. A lot of what was written must be acknowledged as speculative (oil price may go up, turnaround may continue, dividends may be reinstated).
Based on current share price, MTQ is now valued at book (1x p/b). For a company which has just only returned to profitability, the market seems very optimistic of its future prospects. Hence, I think it might be a stretch to say that the valuation -- based on the company's present financial condition and performance -- is attractive.