DGT has similarities to the dot com boom. Data centres became the new thing, too many entrants came in before the actual demand developed, now there's an oversupply at the same time companies are pulling back on expansion.
The 4% yield on IPO was just plain ridiculous, that priced in aggressive demand/expansion & now we have the opposite. What yield do out of favour REITs pay? 7-8%+ but first you have to have a base income to base that on, DGT doesn't even have that until Aug.
Figure out what conservative dpu you think they'll end up paying & work out an entry price on an 8% yield. Even at $2.50 there's still a substantial risk if don't think the 20c dpu stands.
DGT Price at posting:
$2.48 Sentiment: None Disclosure: Not Held
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