SCG 1.35% $3.66 scentre group

hi guys, bought a small parcel a few weeks ago at $3.70,...

  1. 10,423 Posts.
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    hi guys, bought a small parcel a few weeks ago at $3.70, thinking i was getting a bargain, i ended up with egg on my face, ive just doubled my position at $2.97 today, i think LT cant go wrong, i doubt the GOVT will close shopping centres, westfield has a 60yr history in australia, they have been through all the ups and downs in the market since the 1960's, all the cold war stuff, the iran oil embargos of the 1970's the inflation in the last 1970's and they have survived and prospered, this corona virus will just go down in history as a BLIP and in a couple of yrs time, everyone will be saying why didn't i buy UNDER $3, its on a yield of 7.7% now if they keep the 22.6c divvy, even if at WORST they cut the divvy to 20c, its still a decent yield of over 6%, they SHOULD be using that extra money to do buybacks, i dont know why they have stopped, its now trading 30% BELOW BOOK VALUE, i would have thought its a no brainer to do more buybacks, but i guess they fear govt could ban people from going to shopping centres for a few months and instead of doing a capital raising, they will just use the money meant for buyback to keep the industry going, what i want to know is, will SCG give some of their tenants some RENT RELIEF? cut rent or extend the date the rent is due? if australias major cities get locked down like ITALY, SCG could drop to $2.50 and below, but i doubt it will get that bad, in a few months this will be seen as a great time to have topped up.
    cheers guys, any other thoughts?
 
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