What is Happening to the Share Price of Gateway Lifestyle Group?

What does Gateway Lifestyle Group do?

Gateway Lifestyle Group [ASX:GTY] is the owner and operator of Manufactured Home Estates or MHE for short. They provide affordable community living to persons aged over 55.

MHE’s residents generally own their home, but not the land underneath. The resident pays a weekly site fee for the land component.

That’s interesting, but what is the chart telling you?

What is the chart telling you?

I personally find it helpful to bring up a chart. Here’s the daily chart of GTY:

Gateway lifestyle

Source: STEX

As you can see, this company just listed last month. It is unusual that I would profile a company just listed with little history, but these companies interest me.

The stock was up further today making a high at $2.16 at the time of writing. So the chart is telling us the company is into all time highs, but with the caveat that there is little history.

What now for GTY shares?

At Cycles, Trends and Forecasts, we have profiled these type of stocks before and GTY is just another recent addition to this sector. You just get the sense these companies are onto something and that a trend is emerging.

You could posit that the two major concerns for the Federal government are escalating house prices and an aging population and these types of companies profit from both dilemmas.

Many baby boomers are retiring with inadequate super and a lot of equity locked in their home. By downsizing to one of these MHEs, they can unlock a lot of equity in their home — because when they move there they are not paying the large upfront land costs and simply rent the land component.

This is emerging as a strong sector. To find more strong sectors go here.

Terence Duffy,

Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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