Pretty hard for the shorters to "hit" it again seeing as shorting of financial stocks is still banned.
MQG - Macquarie Group
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Pretty hard for the shorters to "hit" it again seeing as shorting of financial stocks is still banned.
Which is a shame, because shorters would have absolutely destroyed this farce of a company. You have to wonder about the extreme volatility in Macquarie, it smells like no-one has any clue about what it is really worth. To me, that means it's worth nothing.
I'll make the prediction now - Macquarie Group will be the first company to make good the governments bank "guarantee". You heard it here first!
I'll make the prediction now - Macquarie Group will be the first company to make good the governments bank "guarantee". You heard it here first!
lol I hope not as one of my trading accounts is with them.
On the shorters - the decent would have been the same, shorters having an effect is a bit of a fallacy imo, since the ban financials have still been smashed. But could you imagine how strong this rally (in all the banks) would have been if all the shorters had to cover their shorts
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Great article that cuts through the crap
Making a mint as inquiry founders
http://www.stuff.co.nz/business/analysis/2288374/Making-a-mint-as-inquiry-founders
Project Mint covers a number of companies allegedly under attack by manipulative short sellers. In addition to Macquarie Group, they include ABC Learning, Allco Finance, Babcock & Brown and Challenger. There is no denying that in the past 18 months, a very large number of rumours with a very negative twist were circulating the market about their financial health.
Given the demise of ABC, Allco and Babcock & Brown, logic would dictate many of the rumours were, in fact, true. It would also suggest that many of the statements emanating from those companies - stridently denying problems and blaming short sellers - were false.
Does a public statement about future earnings - and one that clearly is untrue - from a director or senior executive not constitute a false rumour? Clearly such statements from those running the collapsed companies led to a misinformed market.
There are a number of notable, and particularly worrying, effects from the regulator's obsession with Macquarie.
The first is the stifling of opinion from brokers and analysts on the future prospects of the so-called "millionaires' factory".
At the moment, most analysts are simply too scared to write anything about the group for fear of being caught up in a Project Mint inquiry. Certainly, almost none are prepared to voice an opinion, particularly one that is unfavourable.
As a result, it could be argued that the corporate regulator has created an environment for an uninformed market given traders now are operating in an information vacuum.
But there is a far bigger question here about ASIC's priorities and the way it allocates resources.
A fortnight ago, the receiver of Allco urged the regulator to speed up its investigations into the collapsed financial engineer, and especially regarding related party transactions between the company and its founder David Coe and another director, Gordon Fell. Similarly, the receivers at ABC Learning last week raised concerns that assets had been siphoned off from the company.
This is when ASIC should be front and centre, leading the charge for justice and shareholder rights. Instead, we have an investigation into those who correctly predicted the demise of a collection of badly run bullmarket wonders.
Making a mint as inquiry founders
http://www.stuff.co.nz/business/analysis/2288374/Making-a-mint-as-inquiry-founders
Project Mint covers a number of companies allegedly under attack by manipulative short sellers. In addition to Macquarie Group, they include ABC Learning, Allco Finance, Babcock & Brown and Challenger. There is no denying that in the past 18 months, a very large number of rumours with a very negative twist were circulating the market about their financial health.
Given the demise of ABC, Allco and Babcock & Brown, logic would dictate many of the rumours were, in fact, true. It would also suggest that many of the statements emanating from those companies - stridently denying problems and blaming short sellers - were false.
Does a public statement about future earnings - and one that clearly is untrue - from a director or senior executive not constitute a false rumour? Clearly such statements from those running the collapsed companies led to a misinformed market.
There are a number of notable, and particularly worrying, effects from the regulator's obsession with Macquarie.
The first is the stifling of opinion from brokers and analysts on the future prospects of the so-called "millionaires' factory".
At the moment, most analysts are simply too scared to write anything about the group for fear of being caught up in a Project Mint inquiry. Certainly, almost none are prepared to voice an opinion, particularly one that is unfavourable.
As a result, it could be argued that the corporate regulator has created an environment for an uninformed market given traders now are operating in an information vacuum.
But there is a far bigger question here about ASIC's priorities and the way it allocates resources.
A fortnight ago, the receiver of Allco urged the regulator to speed up its investigations into the collapsed financial engineer, and especially regarding related party transactions between the company and its founder David Coe and another director, Gordon Fell. Similarly, the receivers at ABC Learning last week raised concerns that assets had been siphoned off from the company.
This is when ASIC should be front and centre, leading the charge for justice and shareholder rights. Instead, we have an investigation into those who correctly predicted the demise of a collection of badly run bullmarket wonders.
Read the announcement dude. Offer for MCG for 2.50 per share.
My calcs:
MQG have MCG in the books for about $1. Would be valued at approx $600million.
Revaluing this to $2.50 - valued at $1.6 billion.
Profit = $1 billion.
Cash to MQG - 1.6 billion. Which it doesn't currently need = expansion/larger dividend.
All those naysayers in the market that say MQG is dead, imagine if this scenario played out for MAP, MIG etc etc. They are being way undervalued by the market at the moment.
This should put a much larger rocket under the SP than the current 10%.
(figures are rough. Anyone got more firm calc's??)
My calcs:
MQG have MCG in the books for about $1. Would be valued at approx $600million.
Revaluing this to $2.50 - valued at $1.6 billion.
Profit = $1 billion.
Cash to MQG - 1.6 billion. Which it doesn't currently need = expansion/larger dividend.
All those naysayers in the market that say MQG is dead, imagine if this scenario played out for MAP, MIG etc etc. They are being way undervalued by the market at the moment.
This should put a much larger rocket under the SP than the current 10%.
(figures are rough. Anyone got more firm calc's??)
CanOz
Home runs feel good, but base hits pay bills!
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Should and does are two different things, there must be so many sellers in this that there is too much supply to allow the price to go up, amazing, its the first time i have seen a stock after an offer fail to race up to the offer price. To me this is a sign of the times too, disbelief and distrust as well.
CanOz
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Was just thinking the same
Unbelievable volatility, really feel for anyone who got stopped out of a margin or derivative position at $15
I should pay closer attention to the banks
wow really really feel for anyone who got stopped out at $!5
Crazy this has almost put on 100% in less than a month
Crazy crazy times we live in
Just reading on thebull.com.au:
"Macquarie said it had cash and liquid assets of $30.3 billion, compared with $20.8 billion the year before. The banks capital level was $10.2 billion, $3.1 billion above the regulated minimum requirement."
Then, why does it need capital raising?
"Macquarie said it had cash and liquid assets of $30.3 billion, compared with $20.8 billion the year before. The banks capital level was $10.2 billion, $3.1 billion above the regulated minimum requirement."
Then, why does it need capital raising?
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Although I have looked I cant find any notification as to when trading resumes. Does anyone know?
cheers
cheers
The securities of Macquarie Group Limited (the “Company”) will be placed in pre-open at
the request of the Company, pending the release of an announcement by the Company.
Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of
the commencement of normal trading on Tuesday, 5 May 2009 or when the
announcement is released to the market.
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Ok. Hands-up whose still long? :
Macquarie Bank profits collapses 52 percent
YDNEY (AP) ”” Australia's Macquarie Group, once nicknamed the millionaires factory for the number of executives it made rich, said Friday its profits halved last year, and slashed 2.5 billion Australian dollars ($1.8 billion) from its asset values because of the global financial crisis.
It was the first time in 17 years the bank's profits shrank, and its top officials will feel the pinch through pay cuts of up to 99 percent.
http://www.google.com/hostednews/ap/article/ALeqM5gKx733Nd2NwpVpotiYfmOg9TdRUAD97TB8MO0
:Macquarie Bank profits collapses 52 percent
YDNEY (AP) ”” Australia's Macquarie Group, once nicknamed the millionaires factory for the number of executives it made rich, said Friday its profits halved last year, and slashed 2.5 billion Australian dollars ($1.8 billion) from its asset values because of the global financial crisis.
It was the first time in 17 years the bank's profits shrank, and its top officials will feel the pinch through pay cuts of up to 99 percent.
http://www.google.com/hostednews/ap/article/ALeqM5gKx733Nd2NwpVpotiYfmOg9TdRUAD97TB8MO0
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But, i wish i was short. Darn non-shorting of financials
Nah, it’s just an illusion, its always been possible to short financials, just by shorting a call and buying a put at the same strike, don’t tell anyone else though.
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Capital raising completed. Shareholder get a dip too at $26.60 or a 5% discount to the VWAP of the shares before closing date (http://newsstore.smh.com.au/apps/previewDocument.ac?docID=GCA00949813MQG).
Lets see how the price holds, currently not a bad entitlement offer.
Lets see how the price holds, currently not a bad entitlement offer.
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well in order to make the capital raising attractive the stock has to maintain a price significantly higher than the offer
Theres been a lot of accumulation above 31.80..MQG a short? I wouldnt think so...its one of the few investment banks in the world that has survived the GFC ...
Theres been a lot of accumulation above 31.80..MQG a short? I wouldnt think so...its one of the few investment banks in the world that has survived the GFC ...
nulla nulla
Positive Expectancy
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Interesting how MCQ came back to the market for a capital raising, after heatedly denying the need, when it's share price topped $33.00. The spp to institutions at $27.00 cum div and to retail shareholders at $26.60 ex div, has echo's of the raising of capital by CBA. CBA raised at $26.00 and is now $35.00 but retraced to mid $26.00 before the offer to retail holders closed. I wonder how much we should expect MQG to retrace between the reopen Monday/Tuesday and the spp closing date?
The revised dividend at $0.40 is well below the market expectation of $0.74 -$0.90 and doesn't bode well for any sort of reasonable yield on the share price of $26.60 going forward. Will mqg holders take up the offer? Is it worth taking up?
The revised dividend at $0.40 is well below the market expectation of $0.74 -$0.90 and doesn't bode well for any sort of reasonable yield on the share price of $26.60 going forward. Will mqg holders take up the offer? Is it worth taking up?
Ok. Hands-up whose still long?
Macquarie Bank profits collapses 52 percent
YDNEY (AP) — Australia's Macquarie Group, once nicknamed the millionaires factory for the number of executives it made rich, said Friday its profits halved last year, and slashed 2.5 billion Australian dollars ($1.8 billion) from its asset values because of the global financial crisis.
It was the first time in 17 years the bank's profits shrank, and its top officials will feel the pinch through pay cuts of up to 99 percent.
http://www.google.com/hostednews/ap/article/ALeqM5gKx733Nd2NwpVpotiYfmOg9TdRUAD97TB8MO0
This is unacceptable for a bunch of smart guys, they will come up with some other jargons and money spinning machine to wow the market soon ... These are not your average sale man but a smart one.
Like BrisConnect ...they wow the market..they said they on board bought a stake so they can milk the fees..as soon as the stock trades, they quit the game at a lost but their fees is more than cover for the sale pitch lost
Amazing stuff ..now i call that a smart moveHas anyone else been surprised how firmly MQG held today? They actually closed up! I thought for certain they would be down after the Capital Raising announcement.
As a MQG shareholder Im not complaining though. As long as they are trading above 26.60 on 5 June 09 Ill make a nice arbitrage profit.
As a MQG shareholder Im not complaining though. As long as they are trading above 26.60 on 5 June 09 Ill make a nice arbitrage profit.
