From Fairfax:
“We are in a good position,” McGrath said after the listing. “Our growth prospects are outstanding. I think you need to be careful when you judge the share performance based on day-to-day fluctuations.”
The realtor has 3 per cent national market share and aims to take it past 20 per cent in the medium term, McGrath said. The company plans four to six acquisitions over the next four to five years, he said.
“Australia has many different markets,” he said. “Sydney and Melbourne markets, there is no doubt, are at the end of the growth cycle. We don’t depend on one or two markets. Our business is about volumes and interestingly when the markets calm, we see volumes go up.”
Closed at $1.85 down 12% from the issue price on day one. Perhaps because investors can smell what McGrath is serving up. The last time the property market fell he didn’t grow at all (my yellow box):
McGrath remains utterly dependent upon NSW with 61 out of 82 offices there, mostly in Sydney. For anyone not worried about that I suggest you consult the following chart:
Where exactly are you going to diversify to, John? I hear Perth is bottoming…
