McGrath's Shares - Broker Blames Overall Property Market

Discussion in 'Investment Strategy' started by RPI, 24th Jan, 2017.

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  1. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    RPI, 24th Jan, 2017
    #1
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  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Quite a few agencies have done well enough to list publicly and then always seem to have gone downhill from there.
     
    D.T., 24th Jan, 2017
    #2
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  3. Plutus

    Plutus Well-Known Member

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    McGrath rivals Slater & Gordon's IPO in stupidity.

    These are businesses where the people are essentially the product and expect a sizable cut of the revenue they generate. Now that they are publicly listed rather than profit being split between costs (inc support staff), owners/management/franchise owners & the agents, there is a pesky new entity called shareholders who want a sizable cut...
    They are also businesses that aren't particularly capital intensive to establish.. When you get the ***** because mugs are eating into your commissions/fees and providing you with no benefit, there isn't much to stop you from renting an office down the road and setting up a new agency or firm.

    The only people who benefit from these sort of listings are the senior execs with equity who can rapidly exit their positions after IPO.
     
    Plutus, 24th Jan, 2017
    #3
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  4. gman65

    gman65 Well-Known Member

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    .. which McGrath did..
     
    gman65, 24th Jan, 2017
    #4
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  5. jins13

    jins13 Well-Known Member

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    Bought some shares when it went down to 90 cents and thought that was the worse of it.....
     
    jins13, 24th Jan, 2017
    #5
  6. DaveM

    DaveM Well-Known Member

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    Rather be small and good than big and useless
     
    DaveM, 24th Jan, 2017
    #6
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  7. willair

    willair Well-Known Member Premium Member

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    Maybe they will become small again going by the chart,and once they get into the final dive range the real problems start for any stakeholders..imho..
     
    willair, 24th Jan, 2017
    #7
  8. kierank

    kierank Well-Known Member

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    As the old saying goes:-

    How does one grow a small business? Start with a big business and **** it up.
     
    kierank, 24th Jan, 2017
    #8
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  9. BKRinvesting

    BKRinvesting Well-Known Member

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    Sounds like a solid shorting strategy...
     
    BKRinvesting, 24th Jan, 2017
    #9
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    It's a common trait of listed agencies. IIRC same happened with LJH and a few others over the years.
     
    Scott No Mates, 24th Jan, 2017
    #10
  11. Hwangers

    Hwangers Well-Known Member

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    isnt there a saying that stockbrokers and rea always list at the peak of the boom when hubris is highest!
     
    Hwangers, 24th Jan, 2017
    #11
  12. Ted Varrick

    Ted Varrick Well-Known Member

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    Maybe they can merge with Bellamys and then shareholders can get a volume discount on the class action...
     
    Ted Varrick, 24th Jan, 2017
    #12
  13. The Falcon

    The Falcon Well-Known Member

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    This is just not true. The brokers who run the deal do very well too :)
     
    The Falcon, 25th Jan, 2017
    #13
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  14. dabbler

    dabbler Well-Known Member

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    I do not think it is a saying, this is the logical time to make these moves, they are about making money for a few, seen it many times over in the tech boom, list anything for IPO pretty much.
     
    dabbler, 25th Jan, 2017
    #14
  15. albanga

    albanga Well-Known Member

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    Are we still on topic.....
     
    albanga, 25th Jan, 2017
    #15
  16. Ted Varrick

    Ted Varrick Well-Known Member

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    Hookers must be blowing up, given their IPO has tanked, possibly (but not sure, due to amateurish speculation...) due to McGraths impolding...
     
    Ted Varrick, 25th Jan, 2017
    #16
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