What are MM’s views on CMW & MOT?
Hi James, Still enjoying your insights. In line with your interest in real estate/income plays could you give me your views on CMW and MOT, both recently belted. Thanks, Radley
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Answer
Hi Radley,
Cromwell Property Group (CMW) 69c – Property and funds manager CMW is testing fresh decade lows and although it may look cheap while a projected 10% yield feels almost too good to be true the downside momentum is a concern. Technically a break towards 60c feels highly likely.
Metrics Income Opportunities (MOT) – MOT has been smacked over 10% this week as the markets become nervous around its loan book. A solid ~7.5% yield will rapidly fall if bad debts rise across its 6-month to 10-year loan book. This will be an interesting yield play when economic confidence returns. MXT which we own in the income portfolio has also fallen and we view this as a lower risk way of playing the space with a better defined mandate. There is a blog post we wrote in 2019 covering some of these listed income trusts – available here
