After an early sell-off, GMG reversed strongly on Thursday to close up +5.7%, an impressive reaction to its annual result, especially in a weak market. Importantly GMG has unveiled that data centres are set to be the next step in the evolution of the business – sounds exciting when we consider that NEXTDC (NXT) has more than doubled post-COVID to become a $6.7bn monster of the space. Greg Goodman said that GMG had access to the sites, including the ability to repurpose existing properties, and it’s already started getting its hands on power and customers.
- We are frustrated to have exited GMG yesterday, remember at MM we are always prepared to re-enter a stock at higher levels than we sold, investing is about adding value, not ego.
- We like the data centre outlook and wouldn’t be surprised to see MM buy GMHG above $20 – what a difference a day makes!
MM is neutral GMG around $21
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