MQG

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$224.91 macquarie group limited

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optimistus

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28/07/22

13:12

Post #: 62779999
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Originally posted by kevinrica: ↑

Thanks for the kind words. This is not advice and this is what I am planning.

This is a macro call and not specific to MQG. I think S&P 500 should decline to at least 3450 to 3500 (please see the reasons behind this value and people who are a lot smarter than me are slowly revising their year-end target eg. BOA). This is the level I am constructive. So at least another 15% down from the current level. From a technical standpoint, it will at least breach the 52-week low set a few weeks ago.

Still, there are few optimistic people l as you can see and most people capitulate before it turns. VIX should be close to 40-45. none of this happened. There are a few other indicators I seek before changing my perception of entry-level.

If I have to think of an analogous period, it is 2001. There was so much irrational exuberance (monetary stimulus, QE, crypto wealth) leading up to this period and this excess has to be flushed out. It takes time. There were bear market rallies sometimes close to 50% in that period. That was truly nerve-wracking for someone waiting on the sideline.

Comparison of Citi to MQG: I respectfully disagree
1. It was one of the most undervalued banks going into reporting. Its PB was close to 0.4. In a very superficial comparison about 60% cheaper than JPM (80% cheaper than MQG).

2. Management changed last year

3. Expectation was very low for the bank going into reporting season and much easier to beat them

4. The main contribution to outperformance was the very volatile trading revenue. As you might have guessed, you could very well lose money as well as from trading. The new management was focused on bringing new people to rectify this and it has worked for them.

5. Citi and MQG are very different banks to MQG. JP Morgan and Morgan Stanley are better comparisons.

It is mentally challenging to be a bear.
Everyone has their levels of comfort either actioning now vs waiting. I am prepared to wait as my thesis is FED is going to deliver the hikes (terminal rate of 4 with at least 4-5% persistent inflation), RBA will be dragged on to it and we will have a recession at some time. Banks do not do well in a recession, especially not expensive investment banks. At least this is my thesis.

I hope that helps. DYOR

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How's your thesis working out?

They've called out some short term headwinds but medium term outlook in today's announcement seems positive no?

MQG Price at posting: $178.45 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $224.91		Change -1.640(0.72%)		Mkt cap ! $85.72B

Open	High	Low	Value	Volume
$224.00	$224.91	$222.11	$141.3M	627.4K

Buyers (Bids)

No.	Vol.	Price($)
1	24	$224.23

Sellers (Offers)

Price($)	Vol.	No.
$225.00	23	1

View Market Depth

No.	Vol.	Price($)
1	24	224.230
1	68	224.000
1	200	223.800
1	110	223.700
1	18	223.670

Price($)	Vol.	No.
225.000	23	1
226.000	189	2
226.060	80	1
226.500	100	1
226.550	21	1

Last trade - 16.10pm 04/10/2024 (20 minute delay)

MQG (ASX) Chart

How's your thesis working out?They've called out some...

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

BCI reaches close of funding facility for salt-first part of Mardie project

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Buxton projects new graphite province discovery at WA Narryer play

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Featured News

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Sellers (Offers)

Featured News

How&apos;s your thesis working out?They&apos;ve called out some...

Top Stories

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

BCI reaches close of funding facility for salt-first part of Mardie project

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

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Buxton projects new graphite province discovery at WA Narryer play

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

How's your thesis working out?They've called out some...