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The last time I bought GPT above $4.00 the tsunami of foreign investment money evaporated and I took the losses at $3.75 before 30 June 2013 for a tax offset against our accrued capital gains for 2012/2013.


The next time I tried to trade GPT above $3.80 the market sent the share price down to $3.36. This time I didn't have the short term opportunity to offset capital losses against accrued capital gains for tax minimization and I elected to "ride it out" and take the dividends, confident that GPT would recover above the $3.80 entry point.....eventually.


Two dividends and nine months later my trades came back into the black and we locked in our profit closing out the positions for profits (combined capital gain and divs) greater than 6%. Better than bank rates but poor in comparison with the returns on the rest of our investment funds which hadn't been locked in during those nine months.


Even though we have traded a few parcels of GPT between April and July, as it tracked sideways ranging between $3.84 and $3.98, you can probably understand my reluctance to jump in above $4.00.


    Code               Closing Price                   Capital               Earnings $               ROE               Dist $                   Yield %                   P/E               NTA $               Premium to NTA       
                                                                                                                                                              
    GPT      

        4.000       

   
   

    6,741,843,820   

   
   

    0.3150   

   
   

    7.88%   

   
   

    0.2040   

   
        

    5.10%   

    
   
   

    12.70   

   
   

    3.79   

   
   

    5.54%   

   


Reporting season is coming up. GPT has come out of the CPA take over battle in a win win situation, their funds from operations should be higher, their debt ratio will no doubt be higher than the previous level of 22% but it should be reasonably under their maximum comfort level of 35%, their yield levels are good and their price earnings ratio is one of the lowest of shares in the A-REIT sector. However, at this point I still think there are better low risk trade opportunities else where and I will wait until GPT demonstrates it can hold this level going forward before I risk my dollars. As always do your own research and good luck. :)


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