I know local property has been the “ugly stepsister in the family” for the past year or so, but Growthpoint is looking like a nibble. Since September last year (2018), the share price found support around the R23 levels. With the recent pullback in both the market and Rand, we’ve seen the share price back at the R23 levels and extremely oversold according to its 14-day RSI. It also lagged the struggling $JALSH performance as well.
I still believe that the group are well diversified enough, to weather the current storm and with a close to 23% of its net property income coming from Australia, are well diversified geographically. Locally, it has been tough, but with 6% of its net property income coming from V&A Waterfront, it’s a clear indication about the quality of their portfolio.
With a historic DY of 9.23% (income) and a consensus target price (according to Thomson Reuters) of R25.17, I do believe the company should be pricing in the full extent of the challenging environment.
With a clear descending triangle pattern on GRT’s share price, I would be very cautious about the R23 support level. Should the current support hold, I would watch both the 50-day & 200-day moving averages (at R24.30) as first point of resistance. Should that break, we could most probably see the share price test the top of the triangle (R24.50-R24.60), with a break and close above those levels being very positive for the GRT share price. This could see the share price being inline with consensus target prices as mentioned above.
I still believe that the group are well diversified enough, to weather the current storm and with a close to 23% of its net property income coming from Australia, are well diversified geographically. Locally, it has been tough, but with 6% of its net property income coming from V&A Waterfront, it’s a clear indication about the quality of their portfolio.
With a historic DY of 9.23% (income) and a consensus target price (according to Thomson Reuters) of R25.17, I do believe the company should be pricing in the full extent of the challenging environment.
With a clear descending triangle pattern on GRT’s share price, I would be very cautious about the R23 support level. Should the current support hold, I would watch both the 50-day & 200-day moving averages (at R24.30) as first point of resistance. Should that break, we could most probably see the share price test the top of the triangle (R24.50-R24.60), with a break and close above those levels being very positive for the GRT share price. This could see the share price being inline with consensus target prices as mentioned above.
Trade active:
BULLISH - watch out for possible breakout
Trade active:
First target reached. Watch out for possible breakout, with next target being R25