MEA - McGrath Limited

[System]

McGrath is an integrated residential real estate services company operating five business units that provide a range of services including residential property sales, property management, mortgage broking, auction services and real estate training. McGrath operates a 'hybrid' business model, which will, following the Acquisition of the Smollen Group, consist of a network of 22 Company Owned Offices and 53 McGrath branded Franchise Offices and generate the majority of its revenue through both commissions and franchise fees.

As a whole, the McGrath Network comprises over 600 Agents and was responsible for sales turnover of approximately $11.6 billion in FY2015 from approximately 11,000 sales. It currently manages approximately 22,700 properties, which McGrath believes have a value of approximately $16.6 billion and McGrath’s Oxygen Home Loans business has 31 mortgage brokers with current loans under management of approximately $2.0 billion.

It is anticipated that MEA will list on the ASX during December 2015.

http://www.mcgrath.com.au

 

[fanger]

Does anybody own this? The market didn't seem to like there half yearly reports.

 

[skc]

Does anybody own this? The market didn't seem to like there half yearly reports.

I haven't really followed this closely. On a casual first glance the numbers didn't look too different from those in the prospectus. I do note however that the float had troubles initially and started tanking from day 1. So clearly meeting the numbers were not going to be enough.

Here's an AFR article attributing the fall to housing bubble fears (help spread by AFR no less).

It's unclear what spooked investors in the results, but in his presentation to analysts, Mr McGrath highlighted a number of short-term challenges to the housing market including APRA regulatory changes, a slowdown in Chinese buying activity, the volatility in the stock market and concerns about possible changes to negative gearing.

He also threw in a caveat to the group achieving its full year prospectus forecast, saying they were "subject to challenging market conditions".

Read more: http://www.afr.com/real-estate/mcgr...ng-bubble-fears-20160223-gn20ci#ixzz41H6PgsXY
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[fanger]

Bell direct has a price target of $2.25 after the results although I saw Roger Montgomery interviewed about the stock and he reckons its only worth a $1. I think rogers intrinsic values are full of **** so maybe some where in between. I picked up some recently as I don't think its a bad business.

 

[skc]

Bell direct has a price target of $2.25 after the results although I saw Roger Montgomery interviewed about the stock and he reckons its only worth a $1. I think rogers intrinsic values are full of **** so maybe some where in between. I picked up some recently as I don't think its a bad business.

Trading halt... to review prospectus forecasts. I am guessing it is not an upward revision!

Barely 6 weeks since the half year report no less. Even the majority owner John McGrath himself topped up last month so he's just as in the dark.

Interesting that most commentary I've read revolves around how the earning multiple was too high... as opposed to problems with the earnings itself.

Senate inquiry!

 

[notting]

floated in December and entered a trading halt on Friday, said it expected a 25 per cent to 35 per cent decline in listings in western Sydney compared to what its prospectus forecasts were. It also said there would be a continued reduction in Chinese buyer activity in the north western Sydney region. These factors would hit earnings in the order of $3 million to $4 million.

Stinks

 

[satanoperca]

RE is always a winner.
realestate.com.au is worth $4.3B
news corp $9.7B
betcha Mc Grath is dirty he had to sell a share to Murdoch

 

[Miner]

Bell direct has a price target of $2.25 after the results although I saw Roger Montgomery interviewed about the stock and he reckons its only worth a $1. I think rogers intrinsic values are full of **** so maybe somewhere in between. I picked up some recently as I don't think its a bad business.

Just browsing MEA site to see what my learned ASF mates have said about this.
Well, Bell Potter has now put a hold with predicted price of 80 cents. Reading Fanger's post, I believe the same company predicted $2.25 TP for MEA one year back when Montgomery predicted its intrinsic value less than $1. So after one year whose prediction is sxxx ? I personally have no confidence in BP predictions. In fact when BP tells sell I tend to buy and vice versa.
Forget past prediction, has any one got a better picture for MEA ? It is almost at its lowest value.

 

[greggles]

McGrath punished today after warning that its full-year earnings will be lower than expected.

Currently down around 17% to 50.5c.

http://www.news.com.au/finance/busi...e/news-story/3fbf1d93f826ad2ae170a939c8c09007

 

[greggles]

Aqualand Group has taken a 15% stake in McGrath Limited through a placement of 25,189,880 shares at 42.5c per share. The placement will take place in two tranches, with the second tranche of 11,568,042 shares subject to ordinary shareholder approval. The two companies have entered into a strategic relationship to explore opportunities for both groups to work more closely together on prestige project marketing opportunities.

It's been a rough ride for McGrath over the last 10 months with its share price having fallen from 80c to 33c, where it finally found some support. The announcement today has its share price a nice lift but it remains to be seen whether it can maintain any momentum in the short term.

 

[shoeshineshare]

McGrath (ASX:MEA) first half results included a net loss after tax of $1m. “Turnaround … initiatives … Growing … Optimising … productivity …” worked on the market, the share price going up ten per cent, but there’s still a long way to undo the last few years.

 

[System]

On June 28th, 2024, McGrath Limited (MEA) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between MEA and its shareholders in connection with the acquisition of all the issued capital in MEA by RPAA Holdings Pty Ltd.