MM has priced in the promise of a future, how long can the market hold on to that promise?
MM is now trading at 3 times its IPO price of 1.00 a share. It is just two months since the IPO but its shares is already 3 times the IPO price and this is despite the fact that the IPO proceeds has not yet been fully used. Clearly the market has priced in the future prospect of the MM business. Groceries and convenience stores are capital intensive and low margin businesses and those are the businesses of MM. Established player in this industry are PGOLD , MRSGI , SM , RRHI , and SEVN . The proceeds of the IPO once deployed maybe will be able to add a handful to a dozen operating stores. The additional stores will only produced marginal income for MM. The key revenue actually for MM is the franchise fee. The margin for that is almost a 100% percent. But for now that revenue is still a footnote in the other operating income. The COVID-19 pandemic if we take note of the events around us is battering strong the small and medium enterprises all over the country. Banks are tighten...