GLP

GLP: shares broke above the $2.85 resistance today. The current price of $2.89 is the highest level reached since mid Feb ’14, with next resistance at ~$2.95. Market Insight continues to favour GLP as a constituent in the model Growth portfolio, given its leadership position in modern warehousing, and as a proxy play on the e-commerce boom taking place across Asia, in particular China. Recall, in Aug, GLP announced a strategic partnership with China Materials Storage and Transportation Development Co (CMSTD) to develop modern logistics facilities in China. Through its 49% stake in the JV, GLP will have access to more than 9m sqm of CMSTD’s land resources in prime locations in China, effectively tripling its land bank available for development. GLP’s steady share price rise since early Aug suggests that investors are coming to recognise the enormous potential growth that the deal could bring. In fact, both management and sell-side analysts have been actively engaging investors to boost GLP’s profile. The group is scheduled for yet round of meeting with institutional investors in Sydney over today and tomorrow. Expect sentiment in GLP to improve with mounting investor awareness. GLP shares trade at 1.2x P/B. The street has 13 Buys, 3 Holds and 1 Sell with consensus TP of $3.21.