Every major broker had this as a strong buy not that long ago when the sp was aropund $6. I Bet that now the sp is under a dollar they now say its a strong sell. These charlatans should not be listened to. They make their money by fleecing shareholders. But its our own fault we let them treat ordinary shareholders like mugs. Notice when a company goes under some institutional investors with their inside information have been selling down their holdings for ages.
What this means for MCG I dont know, I got out some time ago at a significant loss but at a much higher price than the current one.
How can we have massive companies where no-one knows what the company position is. Who in their right mind would finance a major company in a way that continuity of loan arrangements is not assured. The danger for shareholders is these loan arrangements have been made through banks who then can take ownership of the companies by stealth by loading them up with debt and then declining to roll over the debt-and shareholders are left with nothing.
Then again maybe MCG is in fact in a better position than is thought but if that is the case why the current sp?
The reality is we are all frightened because it seems that no-one not even the ratings agencies can tell us whether a business is on a sound footing or not.
MCG
macquarie communications infrastructure group
