Breaking this info down they expect
EPS/DPS about 19c for 09 which is 43% down on the 2008 of 34c
2010 is about 10c and same for 2011
Why the drop - It assumes no developments for 2 years. You have to remember that 2009 19c still has some development project income as some projects had already started before the lastest round of credit crunch.
I think GSJBW have a correct price near term at around $1 assuming the same no developments model for 2 years which is a yield of about 10% on this outcome.
I am trying to look beyond to when companies look to move again and the credit markets unfreeze. New supply would have been limited and $3 plus may be on the cards again as development profits would quickly take it beyond 20c EPS.
It is a long term hold from here just like if you buy real estate at the bottom of the cycle and ride it back up for a few years.
latest broker call, page-8
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Last
$37.09 |
Change
0.560(1.53%) |
Mkt cap ! $70.90B | |||
| Open | High | Low | Value | Volume |
| $36.70 | $37.24 | $36.37 | $113.3M | 3.059M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 4606 | $37.09 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $37.10 | 10855 | 3 |
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| Last trade - 16.10pm 14/11/2024 (20 minute delay) ? |
| GMG (ASX) Chart |