Ann: Trading halt , page-84

Could be brewing something with goodman... just IMO only..

SYDNEY (Dow Jones)--Macquarie Group (MQG.AU) plans to raise A$540 million through the
issue of 20 million shares at a price of A$27.00 apiece, a person familiar with the deal
said Friday.
That is a roughly 19% discount to the last traded price of A$33.48. Macquarie requested
a trading halt Thursday as it was contemplating an equity capital raising.
Macquarie last raised capital in the Australian share market in May 2007, when the firm
tapped the market for A$750 million with institutions paying A$87.00 for the stock.
-By Cynthia Koons, Dow Jones Newswires; 61-2-8272-4691;

Date: 8 Jan 08

Goodman Group

Higher up the risk ladder is global industrial property giant Goodman Group. Defined by the name and aggressive nature of its founder and CEO, Greg Goodman, its strategy is not for those of a nervous disposition. In growing from a domestic industrial property developer and owner to a global fund manager, Goodman Group has had more name changes than Elizabeth Taylor.

Goodman prefers to team up with (read ‘acquire’) native businesses that have both the local knowledge and financial distribution capabilities to develop industrial assets and sell them to investors via managed funds. Retaining the management rights allows Goodman Group to earn lucrative fees without weighing its balance sheet down with the burdens of ownership. This affords faster growth in boom times but less protection in downturns.

It’s been a successful strategy over the past decade but the large amount of debt used for expansion is now unnerving investors. The unit price is down 41% from its February 2007 high of $7.68. High debt always increases risk but unitholders may take some comfort from Goodman’s close ties with former partner Macquarie Group. That relationship might prove handy if it ever gets into trouble.
Goodman’s business model is untested against a prolonged downturn and its international expansion further heightens the risk. But Greg Goodman is a shrewd, experienced operator with his personal fortune on the line. If a margin of safety presented itself in the stock price, we’d be prepared to back him. At the moment, it’s down 34% since 5 Sep 07 (Avoid – $6.87) and our conservatism sees us sticking with AVOID.