IPO, page-54

almost everyone I knew in real estate was very sceptical about this IPO and no one looked to buy any shares nor would they now or at even 20 cents.

a couple of key reasons (my opinion only)

Firstly I understand they clawed back a bunch of franchises so MEA actually had something to sell. In my area a bunch of disgruntled ex staff/franchises simply set up Stone Real Estate in direct competition using the Mgrath model - I think they now have a network of 5 new offices in the Northern beaches, servicing the high end market and are doing really well and I assume eating into what was Mgraths market share in a very real way.

Secondly the product is residential real estate sales market . So what is the actual product/income stream other than a brand - anyone can do a course, get a licence and set up in competition. The core product MEA builds income on is what are you able to list and sell to make a fee.

Thirdly I have never liked businesses built around the aura of an individual, to much hype about a guru always sends me to the nervous corner

Residential real estate is a good business model/income for a small private company/franchisee but I fear a network of real estate shop fronts doesn't add up to a growth model or even reliable income proposition.

Good luck to holders but not my type of company and I think the market suspension/revision to forecasts will prove many doubters correct