In today’s daily we have covered stock research on GPT Group (Expensive).

To view 2 Internet Stocks To BUY click here

To listen to our latest podcast on QBE click here

To view our recent recommendation on CSL Click Here

To view our recent recommendation on Mineral Deposits Click Here

S&P 500 was down 0.73points or0.04%on Monday and closed at 1960.23. U.S. stocks ended Monday's session little changed, though both the S&P 500 and Nasdaq closed out their sixth straight quarter of gains, the longest streak of positive quarters in more than 14 years. D.R. Horton Inc. rallied 3.2 percent, leading gains among homebuilders. MannKind Corp. jumped 9.6 percent as the maker of diabetes drugs rebounded from its worst week in two months. Allergan Inc. declined 2.7 percent following regulatory decisions on its drugs.

Oil prices retreated amid easing concerns about supply disruptions over the situation in Iraq. Brent crude settled 94 cents lower at $112.36 a barrel up $7 from the start of the quarter but off a recent nine month high above $115. Gold up $11 at $1,326 an ounce was heading for a second quarterly advance.


S&P 500 Daily Chart (Source - Thomson Reuters)

S&P ASX 200was down by 49.4points or 0.91%on Monday and closed at 5395.7 points. Tower Limited (TWR) announced that it has sold its remaining life business, Tower Life (N.Z) to Foundation Life (NZ). Ansell (ANN) has announced a new organizational structure for more efficient business operations. Paladin Energy (PDN) has announced that China Uranium Corporation has received all the required regulatory approvals for the $190m purchase of the 25% joint venture interest in the Langer Heinrich Mine in Namibia.

APA Group (APA) Australia’s largest natural gas infrastructure business has announced that it has entered into a new agreement with an existing customer for additional gas transportation and storage services for an initial term of seven years. Energy Developments (ENE) has announced that it has agreed to acquire 30 MW of electricity generation assets from Clarke energy Australia (CEA). Healthscope (HLN) has lodged its prospectus for the initial public offer with ASIC ahead of listing on the ASX.


ASX 200 Daily Chart (Source – Thomson Reuters)

The top gainers on ASX 200 were:- 


Stock of the Day – GPT Group (GPT)
 
GPT’s operational update for third quarter fiscal 2014 surprised with better than expected performances from specialty retail tenants. Like for like specialty sales growth for the portfolio has exceeded 3.3% for the five of the past six months, well ahead of peers. A large part of this strength is likely due to the 10.7% and 4.7% annual sales growth achieved by the retail services and food catering categories, illustrating that while households may be buying more online they are also spending more on services. 


GPT key leasing transactions (Source – Company Reports)

The group has made good progress on expanding its funds management platform with the acquisition of 50% of the Northland shopping centre for AUD 496 million and four office assets for approximately AUD 680 million. Progress is also being made on the establishment of a new metropolitan office fund with two assets with a net value of AUD 173 million having been acquired. 


GPT speciality monthly sales growth (Source – Company Reports)

We are concerned with the potential impact of a tough federal budget on consumer spending over the coming year. The retail assets (approximately 90% regional, 5% sub regional and 5% other) provide structural competitive advantages because of high barriers to entry deterring competition in their catchment areas.


GPT Daily Chart (Source – Thomson Reuters)

The challenge for GPT is leasing in both its office and industrial portfolios where occupancy has declined materially. Company specific risks relate to changes to what is a narrowly defined strategy; weaker than expected white collar employment levels in the Sydney CBD and a medium term impact on shopping centre valuations should the current weak sales environment persists. We believe the stock is expensive at its current price and would review the stock at a later date.
  

---

Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.
Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).
The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation.
Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product.
The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide.