GMG –0.61%: Opened firmly this morning after they reconfirmed FY22 guidance for earnings per share (EPS) growth of 23% which was inline with current market expectations, however, the stock tapered off throughout the session. In terms of commentary, Greg Goodman talked up the opportunities for GMG as the environment gets more challenging, saying that this environment suits “older heads” such as his. To give some context around this comment, Greg nearly lost it all during the GFC as over-geared property companies were hit. That experience has led GMG on its current path running with low gearing (~7% currently), heaps of liquidity and a very nimble operation that has done spectacularly when since those scary GFC days. Today, GMG is almost hoping for tougher times to ease the competitive tensions playing out, particularly on the development side. One area that did catch MM’s attention was commentary on Amazon which generally accounts for 6-10% of their development work. That will slow reflecting recent comments from Amazon CFO Brian Olsavsky that it “has too much space right now versus our demand patterns”.
MM is bullish & long GMG
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