Age article sugggest future fund may be looking to buy infratrcture and property investments given cuurent prices. Its property holding only 1.3%
I agree that divi being maintained at current levels is unlikely, however even one assumes divi fell to 4 cents a half, one could pay for the stock with 2.5 years of dividends.
Fall in earnings due to decrease in development earnings and performance fees on funds, although this is not goiung to increase the downside to earnings is limited, some downside exisits but not to the Magnitude of last year.
Although I do feel there are risks with this stock at least an investor buying at 18 cents only has 18cents to lose from this point. From this perspective the upside must be greater than the downside.
The fac that CNP is still around suggests GMG going inmtpo administration is unlikely.
Another point which is worth noting, with interest rates going down around the world, property trusts relative to bond yields become more attractive and the risk reward metrics become stronger as well.
GMG Price at posting:
16.3¢ Sentiment: Buy Disclosure: Held
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