McGrathmaggedon posts another $2.5m loss

By Leith van Onselen

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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Comments

    • 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

      • Diogenes the CynicMEMBER

        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.

      • The Traveling Wilbur

        @Peachy
        Insertion isn’t​ likely to be the problem. Pulling out of the deal is usually the issue with these guys.

  1. Looking at that chart – they certainly are due for a hockey-stick recovery. 😑
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    *SNRK!* 🤣

  2. 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.

  3. 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…