McGrathmageddon haemorrhages red ink

Oh dear:

It’s in a trading halt owing to “a pending announcement regarding recent media comment in relation to Mr McGrath” so not sure what the market makes of it. It makes sense to flush the bad news with the old executive team so we might see a bounce here but I still can’t see anything but earnings downside as property prices fall in the key cities and development comes under intensifying stress.

And what’s Mr McGrath going to announce?

Comments

      • Not a bad thought in a funny sort of way. How actually crazy would you have to be to have had a long and successful career (he must have made a fortune when the business was really on a roll), taken 30 odd mill out of the float, owned substantial property himself and yet be in the parlous position that is being speculated upon currently. I have a reasonable sized and diversified shareholding and the unsolicited offer of a surprisingly massive margin loan facility is just a click away on my online broker’s website – yet just because it’s available doesn’t mean that it’s secured against my shares. This may be the case with McG, who knows? If he’s 16 mill in the hole to any bookie, then he must have dropped more than a few marbles along the way. The oil rich Arabs, including royals, who used to frequent the London casinos for half the year lost untold eye-watering numbers of millions sterling but that’s because there weren’t half a dozen brain cells between them. Just classless buffoons. McG certainly was a smart cookie at one point.

    • To be successful in the real estate industry you don’t need brains or intelligence at all. What you do need is appearance of success, ability to distort reality with confidence and lack of any sense of moralty. I’d say Mcgrath wins on all three out of three.
      P.S. I think they call those selling skills

      • Yup, I always wish I was born pig ignorant — that way I too would currently be the proud hodler of an extensive property portfolio.

    • He’s a genius by RE standards because he completed his HSC. Whereas Mr IQ I think I recall dropped out of high school and never sat the HSC.

      They both prove that school and study are a waste of time, what you really need to be successful is to throw everything you’ve got into the property industry. Everyone who doesn’t is a disappointment to themselves, their family and to be frank the entire country.

    • As far as I know they don’t operate in Victoria. Maintaining market share that has shrunk. Better than losing market share that has shrunk.

    • But of what? The name is dirtied by the listing. The main asset that a Real Estate company has is it brand.
      The people can and will leave. The listings will disappear with the sales force. The rental book has some value but it quickly disappears if the rates are not competitive and the service is poor (I mean to the landlords…. not the tenants).
      After that what is there? Used office furniture?

      • It’s not that difficult to change the business name! Most do – as soon as one pair of “undies” is soiled back/front/inside/outside…
        Symbol 🦄 – formerly known as Prince of Insufficient Light McGraft

      • That is true. But the value of the “name” therefore disappears. If you claim be to the high quality brand, changing the name defeats that.

      • If you put a spoonful of wine on a pile of manure – you have manure,
        If you put a spoonful of manure in a barrel of wine – you still have manure.

        Point being that once you soiled the name it’s a liability – not an asset anymore.

      • Is the name actually soiled in the RE market though? Sure it’s mud among investors and the corporate class, but if they’re retaining market share in RE etc then it might indicate the brand still has value among the mums and dads who are the clients… I dunno.

  1. I reckon it’s probably something to do with all the recent discussion of his gambling and other debts.

    • If he is trying off load his stake in the company to pay off the bookies, that probably requires a trading halt.

  2. Diogenes the CynicMEMBER

    The entire board (except McGrath) gone, changes to CFO, CEO personnel, big write downs, an announcement about something to do with the Exec Chairman (who has to put someone else on the board or fall foul of the corp rules), and the realty market sagging – it all reeks of a train crash.