McGrath Limited has released its FH19 results, which delivered an 18% crash in revenue and a EBITDA loss of $2.5 million:
McGrath operates primarily out of Sydney, where both prices and volumes are crashing:
Accordingly, its share price has collapsed around 88% since it floated:
Surely it is now one of the great IPO failures of Australian history. Perhaps not the Dot Bomb as yet but it’s not over either…
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Foreign property buyers bounce off the lows
Via NAB: The trend decline in foreign buyers of
NSW stamp duty crash deepens
The NSW Office of State Revenue has released
Macro Afternoon
Stocks in Asia are flat again with only the
Mortgage arrears stable
Via S&P: Australian prime home-loan arrears
The irony is they’ll probably be saved by volumes when capitulation/defaults kick in.
a. Volumes will die when capitulation occurs;
b. The boom Sydney had was insane, will hurt a lot of people and very well may not be seen again; &
c. The share price of MEA will rise when it restructures its business and the housing crash has fallen away. In a few years. And it will climb from $0.02 back to current levels, which will make it a 10-bagger for those who got in at the right time
There must be a chance MsGrath buys it back at some point. He sold out quite a lot of his stake at the IPO price.
I reckon buy it for bugger all and turn it into an distributor of sex toys.
That should get McGrath back in pretty quickly. I though someone might do the same when Dick Smith went under.
McGrath Buttplugs …tearing you a new one – gently.
Has a ring (haw haw) to it.
@Peachy
Insertion isn’t​ likely to be the problem. Pulling out of the deal is usually the issue with these guys.
Looking at that chart – they certainly are due for a hockey-stick recovery. 😑
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*SNRK!* 🤣
ipo success, really
This. The bloke offloaded his equity at the peak of the market. Nailed it
How does a real estate agency in Australia make a loss? Its staffing costs are obviously way too high. It should let go of its overpaid spivs and start importing coolies and contributing to jobs growth!
Seems what they have done here in WA. Around my area at least, majority of the cheesy grins on the for sale signs are asians.
Apparently their new IT system is the cause of all their woes. Nothing else. And weekend auction clearance rates were unexpectedly strong too. Got to get that “news” out there every way they can. Lol.
https://www.itnews.com.au/news/scrapped-it-systems-demolish-mcgrath-profit-519465?eid=3&edate=20190218&utm_source=20190218_PM&utm_medium=newsletter&utm_campaign=daily_newsletter
Whats he care, he picked the top of the mkt to float and offload his business…transferred the financial risk of the business to loser property bull investors looking to lather up at the ongoing bull property…all he has to worry about is race 3 at Mooney valley…