MGR – Mirvac Group
My fingers are getting itchy. MGR is now trading below 2001 prices before the great asset bubble boom begun. In fact, the earnings strength is still quite good, despite the forecast/divi slump – cutting divs is important and smart in my opinion. Home prices have dropped, and activity slowed, but this sort of slump is pricing in American style 50% drop in asset values and prolonged crisis. Even if Aussie housing was to drop 30% now, it would still be relatively cheap.
This cyclical is starting to look oversold to me. Any opinions or have I missed a bit of crucial news about the fundamentals of the business itself being completely FUBAR’d? Happy to stand corrected for some greater wisdom.
ps. I have no current interest, though I am interested 
