What happened to the Gateway Share Price?
Shares of Gateway Lifestyle Group [ASX:GTY] rose over 4% today. Gateway develops and manages retirement communities. This market primarily appeals to retiring baby boomers. They might be looking to downgrade their house and release home equity to help fund their retirement.
Why are GTY shares so popular?
Gateway released its first half results yesterday. While the company downgraded its full year earnings guidance, it’s reasonable to assume the market had priced this in previously. Gateway has been in a downtrend since around August last year. It’s now nudging up.
Should you buy Gateway Lifestyle shares?
Gateway is an interesting stock to watch. The company has flagged the second half of the financial year as better for development volumes. Margins and rents remain reasonable.
For the short-term trader, Gateway is unlikely to offer much in the near future. But if you’re a long-term investor, Gateway is an industry that offers a good growth profile as Australian housing remains at strong prices.