I hope nobody invested in McGrath? If you did be prepared to...

I hope nobody invested in McGrath? If you did be prepared to lose money. On the first day of the IPO the owner sells 50% of his shares. There can be many reasons for selling, but there is only one reason for holding on and that is that you truly believe in the company. After all, ask yourself why a millionaire would sell his shares on the first day of the IPO? The answer is that he does not believe that the share price will go up and his alternative e.g. putting the money in the bank is more lucrative.

McGrath talks about growing the business to 20% market share from its current 3%. That represents growth of 6.7 times. Why are you then selling out if you believe in such growth of your business in a market represented by falling prices and lower volumes sold?

The truth is that McGrath did the IPO for a quick buck ala Dick Smith. I will short McGrath all the way down to a buck, because there is where the share is going.