In the 1H19 results, NTA per share increased by 0.2% to $4.19 Retail valuations fell, while workplace and logistics valuations increased.
The discount of SP to NTA is currently about 15%
I think this discount is too large to persist for much longer. Such a large discount can't persist for a long time because there will either be a takeover or shareholders will vote to sell assets and return cash to shareholders.
Is the NTA going to fall? I don't think so. More likely steady or slight increase, with falling retail being offset by increases in other segments as has just happened.
Also note that 10-year interest rates in Australia have fallen by about 60 basis points in the last few months, which tends to increase future valuations.
Also the share buyback is continuing.
So my conclusions are that SGP is oversold and that the SP is likely to increase substantially before much longer.
I leave it up to the chartists to tell us the exact bottom and top.
SGP Price at posting:
$3.53 Sentiment: Hold Disclosure: Held
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