McGrathmageddon is apparently unbelievable to ASX regulators:
And more new lows as the firm steadily implodes, both intraday and closing:
What’s so unbelievable about it? Damn thing is an accident in motion as realty enters an historic top, the traditional real estate agent business model disintegrates and the huge Perpetual overhang pressures equity? That’s why it was listed.
Domainfax rides to its defense today, slamming last week’s story in The Australian:
Even if The Australian story were true, franchise services revenue (from 72 franchise offices) accounts for only a fifth of McGrath’s earnings – two-thirds comes from sales generated from its company-owned offices. So a small exodus of five franchisees would have a very minor impact on group earnings.
What is the ASX going to ask when the shares fall another 73%?
