Over the last 3-months SGR is up +30% while CWN has fallen almost 7% in a much publicised fall from grace. However it only takes a quick glance at the chart below to recognise that the recent outperformance by SGR has simply readdressed the previous out performance by CWN. Considering the major risks hanging over CWN from licensing issues to Jamie Packers potential huge sell down of stock we want better relative value to consider the switch, no hurry for us with a $5 differential unless the news improves for CWN or we get a catalyst like Mr Packer exiting his stake and / or confirmation of their Sydney licence approval.
I was speaking with a good client yesterday who’s been watching the inquiry and can’t believe CWN will actually be granted a licence to operate!