Macquarie Group: An odd conundrum

Macquarie’s 2012 net profit is expected to fall 25%. So why is this previous Strong Buy recommendation up 35% in 4 months? Nathan Bell explains.

Macquarie Group’s share price has increased 35% since the low of $19.94 on 26 Sep 2011. Since upgrading the stock to Strong Buy in Chaos amid the storm: The upgrades on 5 Aug 11 (Strong Buy – $22.97), it has risen 17%.

One might imagine that the news since then has been very good indeed. In fact, it has been almost universally bad.

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