Still flying, just traded at 1.70, looking good to move higher.
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1.72, new all time high .
Mr B is Best Buyer Again.
It should pause here, should... but this market has been brought forward a long way.
P/E for this sector is not high because they are not considered growth stocks but bond proxies.
Another nice rise to another all time high and again, on very strong volume.
GMT and ARG appear to be the favoured Comp Props at the moment. Retail is lagging badly including KPG and PCT. The later may start to pick up next year.
Heres why the price has increases - moving into index, can anyone with a full copy of this article please copy here or send me via message.
https://www.nzherald.co.nz/business/...DKA7JHEEQBLKA/
Tip: you can save premium articles into a service like Instapaper and it will show you the full text.
I’ve copied the relevant parts here:
Property companies Argosy, Stride and Vital Healthcare lit up the New Zealand sharemarket on the promise that they may be included in the main global real estate index.
Stride and Argosy both hit new highs as the S&P/NZX 50 Index closed the week at 12,711.84, up 28.2 points of 0.22 per cent. There were 70 gainers and 58 decliners over the whole market on volume of 49.3 million share transactions worth $187 million.
Stride rose 9c or 3.66 per cent to $2.55; Argosy was up 5c or 3.07 per cent to $1.68; and Vital Healthcare increased 13c or 4.10 per cent to $3.30 on news that the FTSE EPRA/Nareit Global Real Estate Index was lowering its criteria for inclusion.
It is a market capitalisation-weighted index designed to track the performance of listed property companies in both developed and emerging countries worldwide. The constituents are admitted on liquidity, size and revenue.
Matt Goodson, managing director of Salt Funds Management, said the price movements of the property companies illustrate the sheer size of investing by passive funds in this current market.
Argosy has increased 27c this week; Vital Healthcare, nearing its high of $3.37 set on January 25, rose 26c; and Stride was up 19c – all in the range of increasing nearly 10 per cent.
Goodson said "we won't know till the start of September which stocks are going into the index but Argosy, Stride and Vital Healthcare could well join Kiwi Property, Precinct Properties and Goodman Property Trust, which are already there."
Based on current share prices, the passive investment funds may end up buying the local property stocks well above their fundamentals and net asset backing – just as they did early in the year with Contact Energy and Meridian.
"The lesson from that are the funds ended up with a nose bleed when Contact and Meridian's prices peaked and are now trading at their fundamentals," Goodson said.
thankyou Kelvin
Thanks guys, I missed that. Hmmmm...more upside in Sept ?
Maybe ... however - I see this more as a potential feast for the traders.
Have a look what happened to our Gentailers (here MEL, but the others look similar) earlier this year when the international clean energy ETF's bought in.
Attachment 12721Attachment 12721
A peak like the Matterhorn. Great buying for anybody who got in early and got our early ... but dangerous to buy late and hang around when the music stops.
What do I want to say? Not sure ARG's price is currently driven by fundamentals :): Given that interest rates are more likely to go up from here, I would expect them to drop over time.