Author: A Singaporean Stockmarket Investor (ASSI)

Should have sold in May and gone away?

In The Straits Times and The Business Times today, there are at least three articles which mentioned “sell in May and go away” and whether it holds any water. Has anyone sold a large part or all of their investments in the last few trading sessions? Well, today, global stock markets retreated as the Greeks and the French elected new leaders into government. They are sick of austerity measures and they spoke with their votes! European debt story is still very much the key sentiment driver for global stock markets, it would seem. Asian markets and the euro slumped on Monday...

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LMIR: 1Q 2012 DPU 0.69c.

I remember saying that LMIR was too cheap to sell in December last year. It was trading at 36.5c a unit then. I also remember saying that unitholders should be more patient after the rights issue because the REIT’s DPU would bump up in time. The rather low DPU of 0.53c for 4Q 2011 would not be the norm. I estimated the norm to be a DPU of 0.815c per quarter or 3.26c per year. In fact, quarterly DPU could surprise on the upside in time. LMIR announced a higher DPU for 1Q 2012 as expected but the quantum of...

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Suntec REIT: Q1 2012 DPU 2.453c.

I still retain a small position in Suntec REIT at a cost price of about S$1.00 a unit which I purchased towards the tail end of the last financial crisis. This small position is free of cost, actually, since the gain from selling most of my investment in the REIT more than covers its cost. For me, this is what some would call a pillow stock. Sleep on it and get free money. Gearing: 37.4% Interest cover ratio: 4.2x Credit rating: Baa2 NAV/unit: $1.962 DPU: 2.453c (XD 30 April. Payable on 29 May.) Would I add to my long position or would...

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Sabana REIT: 1Q 2012 DPU 2.26c.

The REIT’s yield accretive purchases of five properties last year has helped to push DPU to 2.26c for 1Q 2012. Annualised, this would give us a DPU of 9.04c. Based on the REIT’s last closing price of 97.5 per unit, we are still looking at a distribution yield of more than 9%. 9.27% to be more exact. With a NAV/unit of $1.04, the REIT is still trading at a discount to NAV even though its unit price has risen significantly in the last few months. Gearing: 33.9%. Interest cover ratio: 5.5x. Occupancy: 96% to 98.4%. WALE: 2.6 years Weighted average...

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First REIT: 1Q 2012 DPU 1.93c and a higher fair value?

First REIT has declared a DPU of 1.93c. The unit price of First REIT has been rising steadily. It is clear that Mr. Market is willing to pay a gradually higher price for the REIT’s units which leads me to wonder if we could see First REIT’s distribution yield compressing to 6% which would bring it closer to PLife REIT’s distribution yield which is currently under 6%. This could see the REIT’s unit price going to $1.06. When calculating distribution yield, I would rather use a DPU of 1.6c per quarter instead of 1.93c. Why? When we look at the numbers, we...

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SPH: Interim dividend of 7c per share.

SPH remains my largest investment in a blue chip. Over the years, it has been very good to me. Last year, I had hoped to buy more SPH shares if price should dip to $3.60 a piece but it never did. Clementi Mall. Singapore Press Holdings’ (SPH) 2QFY12 PATMI came in at S$83.9m, or 5 S-cents per share, which was 16% higher YoY. 1HFY12 PATMI now make up 46% of our full year forecast, falling short mainly due to lower investment income. 2QFY12 topline was S$298.5m – in-line with our expectations – and making up 50% of our full year forecast. An...

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AIMS AMP Capital Industrial REIT: 4Q FY2012.

AIMS AMP Capital Industrial REIT has declared a DPU of 2.7c for 4Q FY2012. Total DPU for FY2012 is, therefore, 10.45c. At the last session’s closing price of $1.185 a unit, this means a distribution yield of about 8.82%. The REIT goes XD on 2 May and will distribute income on 19 June. Gearing: 30% (which would drop to 28.8% upon completion of sale of 31 Admiralty Road). 25 properties revalued upwards and this probably helped to lower the REIT’s gearing. NAV/unit: $1.406. Interest cover ratio: 6.2x Occupancy: 99.2%. Weighted average land lease expiry: 41.7 years. Weighted average lease...

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FCOT: DPU up 16.8% in the last 18 months.

I did a piece on FCOT in October 2010 when I said that the REIT has probably turned the corner. At that time, it was trading at 15.5c a unit (which would have been 77.5c a unit, post consolidation). It closed at 87.5c in the last session. DPU was 0.5549c then (which would have been 2.7745c, post consolidation). FCOT has declared a DPU of 3.2423c for 1H FY12 which means that DPU has increased some 16.8% from 18 months ago. It will go XD on 25 April and income distribution will take place on 30 May. Annualised, we are looking at...

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Cache Logistics Trust: 1Q 2012 DPU 2.086c.

It is no secret that I like industrial S-REITs as passive income generators. I am also vested in Cache Logistics Trust although my long position here is quite a bit smaller compared to my investments in Sabana REIT and AIMS AMP Capital Industrial REIT. DPU for the quarter came in at 2.086 S cents and represented a 6.9% YoY increase.  Income distribution is payable 30th of May 2012. CACHE’s portfolio properties remained 100% occupied. The weighted average lease expiry (WALE) stood at 4.4 years. Aggregate leverage improved from 29.6% as at 31 Dec 2011 to 27.7%. This gives the REIT an...

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AIMS AMP Capital Industrial REIT: Credit rating.

Life has been somewhat stressful for me lately. Lots of things happening. That explains the paucity of blog posts. I am trying to get up to speed with things and also trying to catch up on my reading of business periodicals which I have neglected lately. In today’s The Business Times, I read that AIMS AMP Capital Industrial REIT has received an investment grade credit rating of BBB- from Standard & Poor’s. This is good news indeed. This rating is the same as the one received by Sabana REIT last year in August. This means that AIMS AMP Capital...

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Fraud: Taking money from some adults is like taking candy from a baby.

If people promise us easy money, we should have to be very cautious. What is it about? How is it possible? Why is it so? Don’t be a victim of fraud. Just a few weeks ago, a client told me how he was given some physical gold for investing some money in a company. Apparently, the gold given to him was worth some 60% of the money he invested. In case the company went belly up, a new investor would only lose 40% of his capital. The promised annual return was some 25% of the initial sum he invested, if I remember correctly. So,...

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Tee International: Initiated long position at 22.5c.

Tee International is a mechanical and electrical engineering company and sometime real estate developer. As its engineering business accounts for more than 90% of its revenue, it seems like another logical beneficiary of the increase in expenditure on public building projects in the region. As of 12 March 2012, the company has an order book of S$350.7m for its engineering segment alone. See: here. Today, I bought some shares at 22.5c a piece as news that “Bertie Cheng, its chairman, and Phua Chian Kin, the group’s CEO and managing director, are the subject of CAD investigations on the possible contravention of market rigging...

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Cache Logistics Trust: Retreating to supports.

Cache Logistics Trust is a favourite of many REIT investors. It has also received many glowing reports from analysts. I also have a small long position in the REIT. Today, a reader left a comment in my blog asking me if it is a good time to invest in the REIT as it closed at $1 a unit in the last session. Fundamentally, the REIT is a well run entity with 8.4% distribution yield per annum. If one is happy with its numbers, why not? Technically, however, I see possibly further weakness and there could be stronger supports at 98.5c and 97c. I thought...

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SoundGlobal: Golden cross.

Are we about to see the formation of a true golden cross which is the bullish crossing of the 200dMA by the 100dMA? “A real, true golden cross — a very Japanese signal — occurs when a rising 100-day moving average crosses above a flat or rising 200-day moving average. It signals positive price action.” Goola Warden, The EDGE. The 200d MA in this case is still declining. So, the case for a true golden cross is weakened. Nonetheless, there seems to be longer term support with volume dwindling as price consolidation continues. Although there seems to be longer term support,...

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Tea with AK71: Learn a second language!

I remember a Caucasian lecturer from New Zealand telling me before that he wished he was bilingual. He only knew the English language and he didn’t think he was totally proficient in the language either. He said he thought the Singapore government did the right thing in schooling us in two languages. It seems that learning to speak a second langauge also makes us smarter if what I read in a magazine is to be believed. Bilingual children performed better than monolingual children in a series of tests that assessed ability to solve complex problems. This is according to...

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