How do you come up with the $1.12/$1.15 figure?
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Most equity investors are chasing annual returns of at least 12% on risk capital. $1.26 - 12% = $1.11 plus 4-5 cents in divvies, fair value is about $1.15 now, which coincidentally is where I see it. $1.20 looks like an exceptionally good deal...for Macquirie...probably just as well they fudged the books with tax credits to make it look like 17% earnings growth and do all this at a time of year when people are just getting back from holiday and hope most don't notice the creative accounting. It certainly went right over the head of Snow Leopard so if he's your average investor no wonder Macquarie can do a creative sale job on most others.
Macquarie Bank is dumping as they know the MET takeover euphoria will not last for OCA.
OCA is a typical Macquarie structured investment - buy a few unrelated assets in an industry, put in heavily incentivized management (as in millionaires' factory), load the investment vehicle up with debt, put in some 'creative' accounting and then, sell down to the eager punters out there.
Do you think the heavily incentivised management comment applies to OCA in this case, it appears cost control may not have been their strong suit?
Macquarie sounds like another 'backer' to totally avoid at this point. Thanks W69 & Balance for your comments. Am trying not to make 'mistakes' but failing badly ATM.