Wow I want to own an investment bank that survives. MQG gets 150 million shares. Thats based upon the average management fee paid in the past as they earned 44m before performance fees. However what they are not highlighting is that management fees for 2009 will only reach around 30million and no performance fee seems to be payable. against this the internalised management will cost around 12 million so the net saving based upon 2009 is 18m.
Pay them 345m in value for 18m income net of costs and before tax. Thats a deal I would want to reach every day. It always seems that as an investment banker you can reach into the pockets of investors without them even knowing it and you will probably be able to vote 20% in favour of the deal as well.
We as investors will be left with another dilution and we carry the risk as we cannot tell what the future will hold but it was unlikely to hold up against the average of the past bull run of management fees.
As they keep telling you the assets are worth more than the share price why not pay it in cash. Easy thats because thats the second bite MQG want as well. Thats the upside as they are getting this equity at its listed price which they say is low.
MQG once again fills in the hole and walks away with the loot.
Do your own reasearch before taking any investment decision I have been wrong before and will be wrong in the future.
I hope others can post a valid argument that disproves my view so that i can feel less like someone stuck their hand in my wallet. Why do I get the feeling that the whole financial services industry has had their hand in my wallet for years. That MIS favoured the brokers , that mamagement companies sailed the REITs into the storm as they got more and more fees and that my Super if it had to value assets like the market price of the asx would look even sicker than it does and I keep paying these fees to professionals for helping me lose money.
MAP Price at posting:
$2.61 Sentiment: None Disclosure: Held
