I am now beginning to think MQG is going to remain in the $50s, even mid $40s for at least the next 6-8 months. Why? Simply because money/credit is hard to get your hands on. Even for investment-grade companies, incentive needs to be given to lenders before they part with any of their cash, and this comes in the form of higher interest rates. Being a highly engineered financial structure, debt plays a big role for MQG, and with this facility partially constricted, MQG's assets system can churn out unfavourable results. It won't be able to acquire assets as easily as it could in the past, but will need to rely on organic growth for the time being to prop up it's profit margins.
It's high valutions of the past maybe were influenced by the fact that MQG was a company rapidly growing in assets and "power". But now, this certainly isn't the case. I believe we have hit a period of stagnation, and it's going to hang around for a little while longer.
But hang in there, because this phase will pass eventually!
MQG Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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