MQG - Macquarie Group

[divs4ever]

Never thought I'd ever own this ( always ) seemingly overpriced stock , but with an eye on the soaring $ A , I bought ten grand worth yesterday at ...jeebus !..$205.90 a pop , mainly as an easy, overseas market exposure , as they are hardly a " bank " anymore.

Could be yet another dumb move, but I 'll have a clearer idea about that when Macquarie next reports its latest earnings ,next month, I believe.

when the market melts down MQG is seen as higher risk ( less likely to get a Federal Government bail-out , so is liable to drop heavily

in the 4 months between June 2011 to September 2011 in was buying ( small parcels from $31.93 down to $20 )

as long as you are aware of such possibilities you can tweak your strategy , to get an extra edge

good luck

 

[Dona Ferentes]

There must have been a lot of expectation built into MQG shareprice as the results today seem to have met with universal acclamation in the narratives, yet it tanked nearly 8%, to end the day at $186.90 (was holding well above $200 for all of April).

It was a bad day on the markets and some analysts think it is a late cycle flourish that won't be repeated. And the dividend was lower than some thought; hence the sell-off?

Macquarie did well out of the COVID-19 disruption to supply chains. Its commodities and global markets arm profited from the disruption to energy markets and its Green Investment Group delivered $850 million in profits from riding the green transition.

Commodities and global markets was the standout division in 2022, with profits up 50 per cent to $3.89 billion, buoyed by the 32 per cent increase in operating income to $6.17 billion. The group’s private markets investments were positioned for a structural shift, in line with “investors having growing amounts of savings and looking for places to invest [them] where they can get defensive, income-producing assets that also deliver a superior return to what they can get in fixed income and equities."

Macquarie Capital delivered a net profit contribution of $2.4 billion, up 269 per cent, on significantly higher fees from M&A and DCM activities. Investment-related income was also sharply higher due to asset realisations in the green energy, technology and business services areas, as well as an increase in its private credit portfolio.

The banking and financial services division, which competes with the big four banks in the ultra-competitive home loans space, was up 30 per cent to $1.001 billion. Macquarie has outpaced the growth of its larger competitors over the past 12 months, to deliver strong growth in home loans.

International businesses made up 75 per cent of Macquarie’s total earnings, with the Americas contributing 48 per cent and Australia around a quarter, highlighting the strength of Macquarie’s geographical composition.

.......-..-.-.-.-.--.-...-.-.-.
MQG will pay a final dividend of $3.50 a share, 40 per cent franked, on 04 July, up from its interim dividend of $2.72, representing a payout ratio of 50 per cent.

 

[peter2]

This unusually large selloff interests me. As mentioned, their results were stunning. Records are hard to beat but this "bank" has such a diverse mix of activities and is extra keen to scrounge profits any way they can.

The current world events, conflict, uncertain economic conditions, oligarch sanctions, supply problems and huge volatility in the financial markets seem to be ideal conditions for a company I'd describe as "cunning as a dunny rat".

 

[qldfrog]

This unusually large selloff interests me. As mentioned, their results were stunning. Records are hard to beat but this "bank" has such a diverse mix of activities and is extra keen to scrounge profits any way they can.

The current world events, conflict, uncertain economic conditions, oligarch sanctions, supply problems and huge volatility in the financial markets seem to be ideal conditions for a company I'd describe as "cunning as a dunny rat".

The reason i first bought this week.
If the Reset happens, they will be among the few aussies to benefit.
So medium term should be ok

 

[divs4ever]

There must have been a lot of expectation built into MQG shareprice as the results today seem to have met with universal acclamation in the narratives, yet it tanked nearly 8%, to end the day at $186.90 (was holding well above $200 for all of April).

It was a bad day on the markets and some analysts think it is a late cycle flourish that won't be repeated. And the dividend was lower than some thought; hence the sell-off?



Commodities and global markets was the standout division in 2022, with profits up 50 per cent to $3.89 billion, buoyed by the 32 per cent increase in operating income to $6.17 billion. The group’s private markets investments were positioned for a structural shift, in line with “investors having growing amounts of savings and looking for places to invest [them] where they can get defensive, income-producing assets that also deliver a superior return to what they can get in fixed income and equities."

Macquarie Capital delivered a net profit contribution of $2.4 billion, up 269 per cent, on significantly higher fees from M&A and DCM activities. Investment-related income was also sharply higher due to asset realisations in the green energy, technology and business services areas, as well as an increase in its private credit portfolio.

The banking and financial services division, which competes with the big four banks in the ultra-competitive home loans space, was up 30 per cent to $1.001 billion. Macquarie has outpaced the growth of its larger competitors over the past 12 months, to deliver strong growth in home loans.

International businesses made up 75 per cent of Macquarie’s total earnings, with the Americas contributing 48 per cent and Australia around a quarter, highlighting the strength of Macquarie’s geographical composition.

.......-..-.-.-.-.--.-...-.-.-.
MQG will pay a final dividend of $3.50 a share, 40 per cent franked, on 04 July, up from its interim dividend of $2.72, representing a payout ratio of 50 per cent.

the outlook is always the danger with MQG , it habitually under-promises , which i think is just sensible considering the extra risks it takes

the silver-lining is i MIGHT get an extra share ( or two ) in the DRP if the share price remains lower ( than $200 )

not my best return on investment , but right up in the top ten

 

[divs4ever]

The reason i first bought this week.
If the Reset happens, they will be among the few aussies to benefit.
So medium term should be ok

it depends which 'reset ' we get the Davos plan will have us all as debt/rent slaves ( well ALMOST all ) think early Soviet Union ,

OR the citizens will make their own New Wold Order , and that might even include a free-market , if the existing government structure is given the boot

 

[qldfrog]

it depends which 'reset ' we get the Davos plan will have us all as debt/rent slaves ( well ALMOST all ) think early Soviet Union ,

OR the citizens will make their own New Wold Order , and that might even include a free-market , if the existing government structure is given the boot

But in option one, MQG share holders may get some scrumbs

 

[divs4ever]

don't get me wrong MQG ( and their redeemed hybrids MQCPA and MBLHB ) have been VERY nice to me since 2011 , but what of the new investor NOW , and MQG have more wriggles than a rattle-snake , but we are heading into uncharted waters , even the unthinkable can happen , this time.

now IF the government uses the 'bail-in laws on any ( or all ) of the big 4 , instead of the expected 'secret life-line ' suddenly MQG looks like a solid risk v. reward investment ( still high risk , but the big 4 won't look so safe either )

and YES MQG has been fairly generous with the sharing from top execs to share-holders and staff ( some banks keep the gravy for the execs , only )

 

[divs4ever]

But in option one, MQG share holders may get some scrumbs

i prefer option two , the Hayne Royal Commission shows how regulators can be a letdown ( despite the extra paper-work )

MQG could do what it does , and the big 4 would have to survive without government safety nets

 

[dyna]

SP down six bucks today , so bought another ten grand worth at $177.00.
Rising interest rates may hold this gorilla down for a bit, but it's sitting on a $ 10 billion pile of cash ,so I guess it will be an interesting year ahead.

 

[Belli]

Has a few more fingers in the pie than only sitting on cash. Don't hold directly but have some exposure (along with other companies) via and ETF and two LICs I hold.

From annual report.

 

[divs4ever]

i noticed it closed near $175 today ( cum div. )

and while my theoretical av. SP is $26.76 ( but well and truly 'free-carried ' ) i was wondering IF i should buy a few more ( i already participate in the DRP )

HIGHER risk to be sure but is not hiding behind the woodshed on paying divs

at the beginning of the month MQG was my largest direct holding ( and suspect it still is ) and have additional exposure via various LICs and ETFs

DYOR

 

[Garpal Gumnut]

Just a reminder that MQG will be buying barrow loads of their own shares as Employee Share Entitlement time is here. I read it in the AFR last night.

So ... I'd suggest to incorporate that in to your thinking if you are trying to catch this mob of thieving b*****ds on the way down, as any up days, such as this morning may be due to that. They even have a carefully disguised announcement about it referencing derivatives or some such nailed on the front door of their motorbike lock-up this morning.

Also, I'd imagine the poor darlings who work there will be flogging them as quickly as they get them to pay their mortgages.

So gyrations imo quite apart from a recession/crash.

gg

 

[dyna]

The thieving mob needs $870 million to do that.
Only $ 300 mill went through by the June 10 deadline , allowing staff to sell their share entitlement. So for this week and next MQG has to fork out $ 570 million to buy on-market. The S.P. has dropped 5% against 3 1/2 % for the index.
That other so- called " bank" Barrenjoey, sees consumer spending slowing right down to GFC levels with household cost of living for a year at present $45,000 ,to rise by 13 %.

 

[divs4ever]

Just a reminder that MQG will be buying barrow loads of their own shares as Employee Share Entitlement time is here. I read it in the AFR last night.

So ... I'd suggest to incorporate that in to your thinking if you are trying to catch this mob of thieving b*****ds on the way down, as any up days, such as this morning may be due to that. They even have a carefully disguised announcement about it referencing derivatives or some such nailed on the front door of their motorbike lock-up this morning.

Also, I'd imagine the poor darlings who work there will be flogging them as quickly as they get them to pay their mortgages.

So gyrations imo quite apart from a recession/crash.

gg

since i participate in their DRP such gyrations aren't totally bad for me


that $35 (plus ) discount will add extra shares to the holding

 

[JohnDe]

keep an eye on the big banks.

Slowdown to hit banks: Macquarie

Macquarie analysts have tipped a rough ride for Australia’s banks as a looming economic slowdown approaches.

The banks are expected to outperform in the early part of the slowing cycle, before lower credit growth and impairment charges kick in and weigh on their balance sheets.

Macquarie now expects banks not to unwind their recent share price slump “until the economic outlook becomes clearer, which appears unlikely in the near term”.
The analysts say there are rising concerns around the economic outlook which may trigger credit losses, which may be greater than anticipated.

Macquarie said this leaves downside risks to expectations, but any outcome depends on the severity of the recession and its impact on unemployment.

 

[divs4ever]

keep an eye on the big banks.

indeed am being very cautious on my attempts to add extra WBC

 

[dyna]

S.P. down six bucks to its low for the year at $ 153.40.
Sellers now starting to outnumber the buyers but for piddling volumes , though.
The serious buyers don't arrive until market closes after 4 pm. They're in there , hoovering up , every afternoon , now.
Has to be Insto's at that level.

I'll have a few more bites at the Big Mac , but taking my sweet time about it.....Patience required with this one , me thinks.

 

[KevinBB]

S.P. down six bucks to its low for the year at $ 153.40.
Sellers now starting to outnumber the buyers but for piddling volumes , though.
The serious buyers don't arrive until market closes after 4 pm. They're in there , hoovering up , every afternoon , now.
Has to be Insto's at that level.

I'll have a few more bites at the Big Mac , but taking my sweet time about it.....Patience required with this one , me thinks.

MQG came up on my alert list at about 11 this morning. Still not tempted ... not yet, anyway.

KH

 

[Dona Ferentes]

CEO Shemara Wikramanayake said Macquarie had set itself well to take advantage of further dislocations in global markets having bolstered its balance sheet and stockpiled $30 billion of dry powder to snap up attractive assets.

The comments came after it delivered a better-than-expected $2.3 billion interim profit that initially sent the share price 3 per cent higher before a late sell-off pushed into negative territory.

But Ms Wikramanayake hailed Macquarie’s diversified model as profit gains in its markets and commodities business and its Australian banking unit offset a sharp fall off in investment banking fees as market conditions soured.

And a dividend of $3.00, franked at 40% and representing a 50% payout ratio.