re: Ann: Change in Ownership of Responsible E...
Hi Jaeges,
I've been watching RCU for about 6 months now, it grabbed my attention because of the high yield. If the distribution remains at 0.95c each quarter, on current share price, this gives a return of 25.3% per year.
This is a very high yield, and it amazes me why the SP has remained at the $0.15 to $0.16 level for so long. The obvious answer is that the market is predicting either a reduction in earnings and therefore distributions, or that further declines in US property values are anticipated.
My thoughts were that US property valuations would not decline any futher, if anything it would be the opposite, with talks of US interest rate rises on the horizon. And I presume this would follow onto earnings increases and therfore distribution increases.
Could you provide any comment on why you think the SP is where it is at the moment (given the high yield), and how you feel earnings and property prices will perform or be affected in the medium term?
Cheers Dirk
RCU Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
