re: Ann: Max Trust Market Update - Return of ... Here’s a few...

re: Ann: Max Trust Market Update - Return of ... Here’s a few reasons why I choose GJT as my next play

PRO
- Abenomics stimulus – the government is targeting 2% inflation

- If you read the recent annual report a 5% increase in properties price, translate to NTA of $6. With inflation target of 2%, I’d say it is likely that price will rise by 5% in the next 12 months.


- Japan’s real estate is down 80% from all time high, I believe the bottom has been reach

- If Tokyo get the host the summer 202 Olympic, real estate will get a big boost.


- In comparison: Tokyo real estate is now cheaper than Hong Kong, Singapore and other major Asian cities.

- GJT has debt of $400 millions they need to refinancing… in this current stimulus financial climate.. it is likely, they will get refinance for another 3 years.



CON
- Japan population is in decline (however Tokyo is expecting to grow bigger and the majority of GJT assets is in Tokyo and other major cities)

- Earthquake (however, most of GJT assets are built after 1980. With strong earthquake proof code)


- Japan economy is in decline. The yen is falling because of money printing. (however the AUD also fall and is expected to fall further. So the Yen & AUD cancel each other out)
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I was in Tokyo 18 months ago, and went and check out GJT assets.. The building looks fine, this was after the big earthquake in 2011

Bottom line, ABENOMICS.. means real estate assets price will rise.. there is talk of 10% rise in the next 18 months.. I’ve load up 100,000 shares at cost of $0.62 each.. now just sitting back for the rise. After march 2014 when the $400 millions debt get refinance, expect some big movement upward is share price.