1.some short term investors wanted to jump in and out for the the dividend and realized this stock is not very liquid so have to take a haircut to get back out 2. wilson asset management have continued to sell down after they ceased to be substantial share holder. 3. some noise that Ukraine conflict and associated impact on commodity prices will bring forward rate increases to combat inflation 4. federal elections are not good for real estate market confidence
A couple of ideas on upside case: 1. while property prices may stabilise then fall with rate rises the sales volumes so far remain good which is key for MEA 2. I see a higher Market share for mea in existing markets and some early sales from Tas (new mkt) 3. due to low turnover of stock the market buy back may actually make this stock bounce 4. cash on balance sheet could be used to "buy" further market share when property cycle turns down
MEA Price at posting:
48.0¢ Sentiment: Hold Disclosure: Held
