McGrath Ltd

Earnings guidance and key organisational changes:  McGrath Ltd (ASX: MEA) stock fell 12.3% on January 22, 2018 after the company announced the earnings guidance and significant changes to its Board. MEA expects the EBITDA for the half year to be $1.63m before one off items and a small loss of $50,000 post one off items. The half year earnings are adversely affected by the underperformance in the company owned sales division, including Project Marketing. However, the Franchise, Property Management and other businesses are performing largely to the company’s expectation. Further, the full year EBITDA is expected to be in the range of $5.8m - $6.8m after one off items. The underlying earnings are expected to be in the range of $10.6m – $11.6m before one off items. Moreover, McGrath CEO, Mr Cameron Judson and Head of Corporate Services and Company Secretary, Mr Morgan Sloper, will leave MEA. Nigel Dews has also resigned from the Board, due to work commitments and as part of the Stage Two review. As a result, MEA stock has been slipping for the past three months. MEA has been one of the best real estate businesses in Australia, and is enacting the second stage of its cost reduction initiatives, while being on track to remove just under $5 million in costs from the company on a full-year basis. Till we see some signs of revival, we give a “Hold” recommendation on the stock at the current price of $0.50
 

Quintis Ltd

Appointment of administrators:Quintis Ltd (ASX: QIN) has finally called in administrators after it was unable to pay one of its bondholders A$37 million. The company has confirmed that an institutional plantation investor, Asia Pacific Investments DAC, has exercised an option to require QIN to acquire 400 hectares of plantations at a pre-determined price of approximately $37 million. The settlement of the payment of the put option price is required to take place on 02 February 2018. Further, QIN does not have the financial resources available to it to pay the put option price and the Directors have therefore resolved to appoint Richard Tucker, Scott Langdon and John Bumbak of KordaMentha as voluntary administrators of QIN and its Australian subsidiaries. Meanwhile, QIN shares last traded in May 2017 and have been among the most-shorted Australian stocks.

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.