From current rate I see limited downsides for MPS so opportunity cost purely depends on what other opportunities you have at this point of time because I see scope for good appreciation even from here on for MPS because there seem to be many ammunitions still left in company’s arsenal…..key monitorable is how well company uses the cash it has whenever it does……even if management can generate less than half the returns from acquired company than it generated in case of Macmillan then wealth creation for investors could be significant which even at current corrected rates many high quality management mid & small caps might not be capable of delivering…….company should not burn cash in any way by making high loss making acquisitions or by buying hgh debt……if at FY18 dreamed scale of management, a 25 % + EBITDA margin is maintained consistently with healthy balance sheet then current valuations will look extremely appealing for not only long but medium term investors too.
Rgds.
Discl – Invested in MPS
Note – This is not a buy/sell/hold recommendation and is only part of general discussion.
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