GPT – FY19 Earnings

GPT has increased earnings by 2.6% growth, which is in line with the recently lowered guidance.

The FY20 outlook is for similar underlying growth of around 2%.

Office and logistics are clearly the stand-out performers, whilst retail exposure remains a potential drag.

With GPT trading on a 4.5% yield and low levels of growth over the next 1 to 3 years, we consider the stock full value.



GPT – Algo Buy Signal

GPT is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see value in buying GPT at $5.75 and waiting for a rally back to $6.00 before selling out-of-the-money call options.

For more information on the derivative strategy, please call our office on 1300 614 002.


GPT Strategy – Generates 10% cash flow

GPT reported 1H19 earnings which showed growth at 2% based on the same time last year.

Full-year guidance remains at +2.5% and DPS growth of +4.0%.

We consider GPT an attractive buy-write strategy where a combination of the dividend and the call option premium is generating 10% cash flow.

For more detail on the buy-write, please call our office on 1300 614 002.



GPT Group – Buy & Add Call Options

GPT is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio. The share price is up 30% since being added back in October 2018.

The recent price retracement from $6.50 to $6.10 is temporary weakness following the rights issue this month. We suggest investors take advantage of the pullback in the share price and begin accumulating.

GPT goes ex-div $0.1285 on the 28th December 2019.

GPT – Algo Buy Signal

GPT is under current Algo Engine buy conditions and has been in the ASX 100 model portfolio since October last year.

The recent retracement from $6.32 back to $5.65 has triggered a new entry signal and we draw investors attention to the opportunity.

GPT is growing earnings at 5% per annum and trades on 4.8% dividend yield. Through adding a covered call option, we are able to boost the annualised cash flow to over 10%.

Buy within $5.50 to $5.75 range.



XJO – The 5941 Level Is Technical Resistance

The XJO has formed a “lower high” pattern within the existing Algo Engine buy signal structure.

The market has rallied 6% from the recent buy signal but we’re now mindful of the recent break of the “higher low” structure, as circled on the chart below.

5941 is resistance for the XJO and whilst the market remains below this level, some caution is required.

Names that remain supported within today’s broad market sell off include, AGL, CTX, GPT, WES, SCG, TCL, HSO & WOW. We remain cautious on the banks and select resource names .