McGrathmaggedon sinks alone

Via The Australian:

Investors continue to flee founder, 26 per cent shareholder and Lionel Richie fan John McGrath’s real estate outfit, which yesterday fell almost 6 per cent to a record low of 42c.

It was the first opportunity for McGrath shareholders to respond to Friday night’s news that chairman Cass O’Connor and her fellow non-executive directors Elizabeth Crouch and Cath Rogers will be out of the place in less than a week.

The trio’s departure — effective by close of business on February 19 — leaves the 54-year-old McGrathas the property outfit’s only ongoing board member.

It also gives him seven days to convince at least two people to join him on the company’s board so it is not in breach of the Corporations Act.

Shares finally broke to new lows yesterday:

Dow -80% from the float now and the property correction has barely started.

Comments

  1. There is something that really warms the heart when basking in the glow of a burning realestate empire.

    Pass me another marshmallow old chap!

  2. I’m not sure why these wenches should be allowed to resign from the board. It’s their job to stay and fix the company, isn’t it?!

    • No, you idiot, their role was to shut up, enjoy the ponzi and count piles of free money. Who in their right mind would play along if they had to use their actual adult grown up brain to do stuff like think and solve problems in bloody property?

  3. I’d have to say mr Mcgrath seems to have executed perfectly. He’s taken all the money from the float, destroyed the value of the company, and is rapidly approaching the point he can now buy it back for almost nothing.

    • thomickersMEMBER

      BIG gambling debt though and could get margin called AF. Maybe tom waterhouse could get it for almost nothing… he know’s what he wants

    • Either that BJW, or he will have to sell what’s left to cover his gambling debts, will lose everything he’s built, and will next be spotted sleeping under a bridge (and trying to sell said bridge to one of his fellow bearded hobos -possibly Nathan Birch – for a Tom Waterhouse betting slip).

  4. A movie producer should package this into a Casino/Margin Call/Big Short for Australia.

    “In a world of ponzi finance there was a handsome spruiker…”

  5. Diogenes the CynicMEMBER

    He did give everyone a giant Tell about his view on the property market by floating the business though. Thanks McGrath!

    • It will go so low you will need an electron microscope to see it.
      It probably has a negative value now, but the efficaciousness of modern accounting is giving it cpr
      but i can tell you for free: it is now brain dead, good only for parts.

    • Can’t wait for the day when the papers are full of sad stories of specufestors relating how they were foreclosed on and how it was ‘other people’s fault’ (and not their blind greed) that got them to this point.

  6. So all 4 board members have resigned,….all 4?
    McGrath Limited (ASX:MEA) (MEA) refers to its announcement on 22 January 2018 in relation to
    significant changes to its Board and executive team and the intention of McGrath Chair, Cass
    O’Connor and current Non-Executive Directors Elizabeth Crouch and Cath Rogers to resign as
    directors of MEA (Outgoing Directors) following an orderly transition period and release of the
    Company’s interim results in February 2018.