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.
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.
The reason i first bought this week.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 outlook is always the danger with MQG , it habitually under-promises , which i think is just sensible considering the extra risks it takesThere 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.
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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.
it depends which 'reset ' we get the Davos plan will have us all as debt/rent slaves ( well ALMOST all ) think early Soviet Union ,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
But in option one, MQG share holders may get some scrumbsit 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
i prefer option two , the Hayne Royal Commission shows how regulators can be a letdown ( despite the extra paper-work )But in option one, MQG share holders may get some scrumbs
since i participate in their DRP such gyrations aren't totally bad for meJust 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
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.
indeed am being very cautious on my attempts to add extra WBCkeep an eye on the big banks.
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.
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