I emailed GMF the following:Following on from the most recent...

I emailed GMF the following:


Following on from the most recent announcement relating to Dec 08 results.

Macquarie has downgraded GMG and the folliwng comments were made (see bootom of post)

Can GMG

1. REfute that EPS for 2009 will be Nil
2. Refute that DPS for 2009 will be Nil
3. That a rights issue will be required to not breach lending covenants.

You prompt reply would be apprecaited as Macquarie has basically discounted the announcement made as being unbelievable.

Macquarie rates GMG as Downgrade to Neutral from Outperform - While Goodman has suggested its result should be in line with guidance, the broker fears the situation is deteriorating for the group. The industrial sector reprensents an opportunity for larger property value write-downs than retail or office, the broker notes, and Goodman is facing a likely dividend cut and at least an underwritten DRP. GMG is battling with high gearing.
The broker has reduced forecast earnings by 43% in FY09 and 71% in FY10-11. A saving grace is that even assuming a div cut and DRP, GMG offers a 17.6% FY10 yield, the broker notes. But the broker believes it will be two years before the market recovers for the group and has downgraded to Neutral.

Target falls from $3.15 to $0.59.


Target price is $0.59 Current Price is $0.54 Difference:$0.05 - (brackets indicate current price is over target). If GMG meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. Macquarie forecasts a full year FY09 dividend of 0.00 cents and EPS of 0.00 cents.

Market Sentiment: 0.5