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GPT - GPT Group

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elaine329 said:
So... does that mean if i have 100 shares now will become only 20?
Sorry I am kind of confused by all these news
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Yes. It won't make any difference to you in reality as the stock price will similarly change, and one share will be worth 5 times what your previous one share was worth.
 
The closing price of $2.81 (is the equivalent of 5 X $0.562) which more dramatically shows the discount to net tangible assets of $3.45 (5 X $0.69).
 
For what it is worth, the ASX printout shows that 48% of turnover on 13 May 2010 were short trades. Buggers have to buy back at some stage.
 
I used to like trading this stock when it was cents , you new its chart levels and it traded consistently .
 
Sorry guys, I'm completely clueless about things happening in GPT. Can anyone shed some light briefly on why do they need to convert 5 stock into 1 ???

I'm a holder, but yes I'm a total noob and just hold them on the advise of my uncle. However, he is overseas at the moment, so I guess I'm hoping you guys could shed some light here. I've tried to search for any announcement on why this was happening, but no luck.

Thanks a lot guys !
 
rtjoa said:
Sorry guys, I'm completely clueless about things happening in GPT. Can anyone shed some light briefly on why do they need to convert 5 stock into 1 ???
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GPT had to raise capital at very cheap unit prices to repair its balance sheet (pay off debt) after some very poor investments choices pre GFC. It was one of many property groups in this situation. The conversion restores a blue chip look of respectability to the unit price and helps to erase the memory of a very dark chapter in its long history.

The conversion in itself does not change the value of your holding.
 

:thankyou: drsmith ! This certainly clears my fear. I thought something really bad happened but the fact that I couldn't find any bad news about them is what really baffled me. All is good now !
 
So what will happen to the dividend they use to pay ? Will it be multiplied by 5 ? Lets say before they make 5to1 they use to pay a share 0.0056 according to 2009 !! Are they going to maintain that ?
 
speedbiker said:
So what will happen to the dividend they use to pay ? Will it be multiplied by 5 ? Lets say before they make 5to1 they use to pay a share 0.0056 according to 2009 !! Are they going to maintain that ?
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All things being equal the dividend will be multiplied by 5.., ALZ recently did a 1 for 5 consolidation and the dividend went from 2c to 10c (last to next) but half on corresponding half the divi went from 3c to 10c
 
Here I was thinking the surge through $2.95 signalled a breakout and the price would climb to $3.00+ when the wheels fell off and the price dropped back to $2.88 before closing today at $2.90. Not good particulary as yesterday they announced a div of $0.041cps.

It goes exdiv on Tuesday, does this meean we can expect the price to drop to $2.86. Stay tuned, same time, same bat station, same bat channel.
 

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Yes, gpt went exdiv and the price dropped from $2.92 to $2.87, then stockland group decided they could make better use of the funds tied up in gpt and sold 238 million shares to the insto's at $2.75 ea.
The price promptly dropped as the insto's started taking their profits on the difference between the $2.75 purchase price and market price. Closed on $2.79 after tapping $2.77.
I wouldn't be surprised to see the price drop to $2.75 and even lower as the insto's unload with an average sale price above $2.75. GPT could be worth picking up arround the present levels for a longer term hold. Certainly a big discount to net tangible asset value.
 

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GPT touched $2.73 then found a line of support at $2.75. Every time it looked like getting ahead as it clawed its' way up to $2.80 - $2.85 it was pushed down, probably the institutions that bought from SGP at $2.75 and retail traders that bought on market at the support levels, taking their profits.
Over the last three days gpt has banged on a quick $0.11 jumping from $2.77 to $2.88.

The RSI chart suggests the share price is moving into "overbought" levels as it gaps up from the moving average price. Bear in mind though that with the volume of shares released into the market by the SGP sale (insto's taking their profits) the moving average share price dropped fairly quickly.

The MACD chart shows the share price finaly gapping above the Converging and Diverging averages. The multiple moving average chart suggests the price may be turning back upwards.

It would not surprise me to see the share move gradualy back up from here to the $3.00 level and higher (which was the $0.60 mark before consolidation). However there are two factors that could see the price linger at these levels and take longer to recover towards parity with Net Tangible Asset value and they are:

1. There are still plenty of shares sold by SGP at $2.75 to insto's that could be pushed back into the market at a moments notice as they elect to take profits; and
2. SGP is no longer lurking in the wings for a potential take-over of gpt, which may have been helping to keep the gpt share price bouyant.

As always do your own research.
 

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GPT finished the week on $2.91 after jumping to $2.95 the previous day. Hopefully the insto's unloading the shares bought from SGP have thinned out and GPT can continue to recover to $3.03 and higher.
 

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$2.95 appears to be a resistance level, but I liked the quick recovery from the drop back to $2.91. Hopefully $2.95 will be a break through point then become a support level. Hard to get a feel for what it might do in the next week or two on low volumes of turnover.
 

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The share price is still headbutting the resistance level of $2.94 - $2.95 but held up well in the buy/sell action of Thursday Friday which saw a few other REIT's being sold down in the closing stages of 2010.
If anything the chart suggest (to me) that gpt is ready to break out upwards. Roll on 2011.
 

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Talk about unpredictable. Once again gpt managed to break the wrong way, dropping down to what appears to be a support level of $2.88. Interestingly, yesterday it opened at $2.91, dropped to $2.88, rallied up to $2.96 then fell in the clossing stages back to $2.90.
There could still be insto's locking in profits from their take up of the SGP parcel unloaded at $2.75 holding the price movement back. gpt also got a mention in business as a potentail takeover in 2011.

 
gpt continuest to show volitility this week. On Thursday the price jumped from $2.93 to $2.99 interday before closing on $2.96. After opening at $2.96 on Friday, the price dropped to $2.90 then fluctuated between $2.92 - $2.93 before falling back to $2.91 in the closing auction.
gpt seems to be in a tug of war between the bears and the bulls at the moment. It will likely announce a dividend in February which could see the price sneak up as the announcement date nears.
 

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On Monday the price dropped to $2.89 and I picked up a small parcel at $2.90 on the way down, which I immediately put in the sell queue at $2.96. On Wednesday I sold at $2.96.
On Thursday I re-entered at $2.90 and on Friday the price fell to $2.84 before closing on $2.85. I had another buy in the auction at $2.84 but missed out.
If it is still down on Mondays open I will look at another parcel at $2.84. Mind you if the overhang from the sale of the sgp parcel is being reduced, a lower entry price may be in order. The next support level appears to be arround $2.82 and after that arround $2.77. As always DYOR.
 

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Nice bounce on Tuesday followed by a jump to tickle $2.99 on Thursday morning, then a fade back to close at $2.94. Dropped to $2.92 on open today but surged in the close to hold $2.96.
The market doesn't appear to know what it wants to do with this one. The swings provide opportunities for the quick and confident.
The Annual report is due on 21/02/11. There haven't been any negative updates, so I expect them to meet or exceed their targets. Don't be surprised to see an improvement in the share price in the run up to the report. Then again don't be surprised to see the price pushed down because the analyst expectations were higher and were'nt met. As always D.Y.O.R.
 

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It still came as a surprise. Spiked up to $3.09 on Thursday. I managed to close out one trade at $3.08 and will re-enter if it dips below $3.03.
The Annual report is due on 21/02/11. There still haven't been any negative updates, so I expect them to meet or exceed their targets. And I continue to expect to see an improvement in the share price in the run up to the report.
It would be good if it could test the $3.15+ level although this would still leave a discount to nta.
 

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