Australian Investment Blog
ASX:MQG 26/07/2018
Macquarie struggles as Nicholas Moore departs, guidance dissapoints
Stock
Macquarie (MQG) $121.70 as at 26/07/2018
Event
It was a very volatile day for the stock today as the market reacted to the AGM. In the past the AGM was a catalyst for the stock to move higher as the company has used this as an opportunity to upgrade forecasts higher than the standard “in line with previous financial year” comment quoted in previous full year results. There was a change of tune this year however – CEO Nick Moore to be replaced by head of asset management Sherma Wikramanayake (not totally unexpected, over a decade in the job, Nicholas was due for a rest and Sherma was always touted as the heiress), the headline was no upgrade to previously mentioned “in line with previous financial year.” The market thought this was not good enough and sent the stock to an early low of $119.11, 4.7% below yesterday’s close. Yesterday our $118 target seemed a pipedream, but by 10.10AM it was a stone throw away with the market expecting 5%+ growth only to be told there would be none. By the time the dust settled, Macquarie recovered somewhat as everyone accepted Macquarie wasn't going to 0. Also, zero growth was likely an understatement for which Macquarie is well known for.
Macquarie (MQG) Chart
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