There were no headline surprises from GMG when it reaffirmed guidance on Wednesday and we initially thought it might disappoint a market that’s used to plenty of upgrades from Greg Goodman & Co., and the stock did initially dip ~50c. However, we liked what we heard in the conference call, with the undertone of confidence around their move into data centres (DC) very encouraging:
- Greg Goodman said the rush is on, numbers are significant, demand for DCs is strong, and Trump and any trade war cannot change things.
- He said DCs are definitely infrastructure and not real estate, meaning investors need to make long-term commitments for higher returns.
- The massive build out, potentially ~$100bn for GMG, will get some government push back, which to some might be a serious challenge, but not to Greg Goodman.
The highly successful CEO says these challenges are exciting. “As a group, if it’s hard, we like it. We roll up our sleeves, don’t go on holiday, and get it done.” We are content backing GMG our local DC exposure.
We are initially looking for GMG to make new highs over the coming years: MM holds GMG in its Active Growth Portfolio.
MM is long and bullish GMG
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