This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

MEA - McGrath Limited

Jump to new

System

Joined
27 June 2010
Posts
4,225
Reactions
337
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
 
Does anybody own this? The market didn't seem to like there half yearly reports.
 
fanger said:
Does anybody own this? The market didn't seem to like there half yearly reports.
Click to expand...

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).

 
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!
 


Stinks
 
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
 
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.
 
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.

 
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.
 
Last edited:
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.
 
You must log in or register to reply here.

Similar threads

OPN - Openn Negotiation
Replies
3
Views
2K
Country Lad
Z2U - Zoom2u Technologies
Replies
3
Views
3K
noirua
NLH - Nicheliving Holdings
Replies
0
Views
4K
System
R
The 7 Moats of Quality Companies
Replies
7
Views
7K
divs4ever
PLG - Propertylink Group
Replies
3
Views
5K
System
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...