Have spent all week trying to get my head around the metrics of the LPT's. Obviously there is a pricing differential between the smaller and larger players. The anomaly however is that GPT is currently priced with the smaller players, with a forward (2008/09) PE of 8 and yield of 12% and 55.7% discount to revised NTA. I see nothing in its rik profile to price it as a junior player. Sure its leverage is higher than MGR. Good! More exposure to the upswing! Risk of raising or distressed sales is rapidly abating.
I've gone from 100% juniour explorers to a 35% weighting of GPT in my portfolio. Its not exactly spreading the risk around the LPTs, but I'll consider that when GPT is $2.48. Thats the price that sets its PE, yield and NTA discount to the same as MGR currently, without the added upside that all LPTs face this week.
Good luck all. $2.48 price target, preferably this week!
(There should be a disclosure category for "screaming buy"!)
Cheers
GPT Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
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