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Volume Surge in Property Trusts

Discussion in 'ASX Stock Chat' started by billhill, May 29, 2009.

  1. billhill

    billhill

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    I have noticed that a few of the listed property trusts (gpt, dxs, sgp) have shown large volume increases in the last few weeks without any significant changes in price. My thoughts are that it is probably institutional accumulation but would appreciate others opinions.
     

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  2. nulla nulla

    nulla nulla Positive Expectancy

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    Most of them are trading at a value significantly below their asset backing per share. Also most of them are paying a yield greater than 10% after allowance for the fact that their dividends have been reduced and diluted by the increase in shares issued.
    You could almost be forgiven for thinking the only way they can go from here is up. However there is still room for further falls in the property valuations behind the asset backing and the occupancy rates are susceptable to falls if the global financial crisis continues.
    Also, lately the hedgefunds have been given permission by A.S.I.C to short REIT's again and you can be sure they will.
     
  3. MRC & Co

    MRC & Co

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    Good points nulla nulla, think you got it covered there.

    Thx.
     
  4. So_Cynical

    So_Cynical The Contrarian Averager

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    Ive been watching the property sector for a while and safe to say its
    somewhat range bound....at some stage due for a break out.

    Perhaps this is it!

    Perhaps not!

    :dunno:
     
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