Author: A Singaporean Stockmarket Investor (ASSI)

First REIT: 3Q 2012.

As the contribution from the divestment of its Adam Road property has run out, First REIT’s DPU sees a reduction of 12.5%, quarter on quarter, from 1.92 to 1.68c. Year on year, however, DPU has improved from 1.58c to 1.68c. I would say that First REIT has produced sterling results yet again. Income distribution is payable on 29 November 2012. See financial statement:...

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LMIR: More acquisitions and lesser DPU again.

The latest acquisitions of Pejaten Village and Binjai Supermall will further reduce DPU. Of so many REITs I am vested in, LMIR is one which has constantly disappointed in more ways than one. The management has listed the advantages of acquiring these malls and they sound like a rehash from their equally distasteful purchase of 4 malls recently: 1. Acquisitions are at a discount to NAV. 2. Enhance earnings of the Trust. 3. Properties are of good quality. 4. Increase economies of scale in operation and marketing. 5. Minimise concentration risk. The price tag for the purchase of the two malls:...

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Dynasty REIT: At what price would I bite?

Recently, I received quite a few emails regarding Dynasty REIT. With full page ads taken out in the newspapers, few could have missed the promise of an approximate 7% distribution yield. It seems that the REIT is generating quite a bit of interest in the current low interest rate environment. I have not subscribed to any IPOs in many years, believing that they are on terms which are more in favour of the issuers. Of course, there are cases in which IPOs have done quite well because Mr. Market’s sentiment towards them was favourable. So, for people interested in IPOs, they should...

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Sabana REIT: 3Q 2012 DPU 2.34c.

Sabana REIT reported a robust set of numbers, declaring a DPU of 2.34c. The counter will go XD on 24 Oct and income distribution is payable on 28 Nov. Total assets under management: $1.1 bn Occupancy rate: 99.9% Average all-in financing cost: 4.3% Weighted average tenor of debt: 3.5 years. Interest cover ratio: 5.5x NAV/unit: $1.03 Sabana REIT’s higher income from a slew of acquisitions comes with financing cost increasing significantly as well. Gearing is now higher at 38.3%. However, this does not disturb me much as the net result is still positive for unit holders. In my opinion, the weakness...

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CapitaMalls Asia: Broke resistance.

I got into CapitaMalls Asia way too early. However, taking a cue from the weekly chart, continual buying means my current long position is in the black. Of course, I have collected some dividends in the meantime as well. Of course, what I have done is by no means brilliant. Far from it. The brilliant thing to do is to buy only when share price has troughed and looks to be turning up. Another lesson for me. Technically, CapitaMalls Asia’s share price broke resistance at $1.70 and it remains to be seen if this could be resistance turned support. With...

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Saizen REIT: A retest of resistance at 18c?

On two occasions in the past, I did not partially divest my investment in Saizen REIT as its unit price touched a high of 18c. It was due to a belief that it remained undervalued even at that price. Yesterday, Saizen REIT’s unit price broke resistance at 16.8c while it touched a high of 17.7c before closing at 17.4c today. Could we see 18c again soon? The lower highs on the MACD and the declining OBV are rather ominous. Forming negative divergences with the ever rising unit price, any chart watcher would not be wrong to wonder if a correction could take place soon....

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Sound Global: Accumulate on weakness.

Despite rather positive reports, the share price of Sound Global has been in retreat. Mr Market agrees with my earlier musings in July and August on whether it was a good time to sell, it seems. Mr. Wen Yibo has been accumulating shares of Sound Global in the last one month and currently holds 56.2% of the shares. He probably knows something that we don’t but even if we do not know what he knows, what information is publicly available shows that the fundamentals of Sound Global are sound and that the business is growing. Technically, Sound Global’s share price is...

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China Minzhong: Opportunity in slowing momentum.

A big part of my portfolio is invested for income while the remainder is invested for capital gains. In both instances, once I stop adding to my long positions, the main thing to do is to wait. Wait to collect regular income in the first instance and wait to lock in gains in the second. I will have more income distributions from S-REITs in November and December. Possibly, there will be dividends to be collected from some stocks as well. I am not too sure as I have not noted the precise dates for some time now. I also invested in...

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Wilmar: A rebound or something more?

Wilmar is up 3.9% at $3.18 as players await further details from the Malaysian government on a CPO export-tax cut. “It’s one of the better companies in terms of having feet in both Indonesia and Malaysia and (being) able to trade around any opportunities from that” on the potential tax change, an analyst says. He adds, the slightly improved soybean supply-side numbers from the U.S. were also positive for the stock as soybean availability is key for Wilmar. He notes the stock is starting from an overly depressed position and a number of players are “relooking” it after its...

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LMIR: More benefits from acquiring 4 malls?

Since its rights issue last year in December, expectation was for LMIR to acquire more shopping malls to improve its DPU which has been rather disappointing, being much lower, post rights issue, than initially expected. With my investment in LMIR some 200% bigger than it was, pre rights issue, I am naturally concerned with its underperformance. Finally, an announcement to acquire 4 malls at a discount to their respective valuations. The 4 malls are: 1. Palembang Square for S$ 74.8m (19.9% discount to valuation) 2. Palembang Square Extension for S$ 29.8m (4.5% discount to valuation) 3. Tamini Square for S$ 30.1m (23.4%...

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Seven money habits of AK71’s.

This blog post is mainly inspired by a conversation with my mother on some of my habits. Recalling a popular book titled “Seven habits of highly effective people“, I came up with “Seven money habits of AK71’s“. ;p Habit No. 1: I never order canned or bottled drinks when dining out. Fresh food needs on site preparation but I can walk to a nearby supermarket to buy the same canned or bottled drink for a much lower price. Some might say it is convenient that we buy drinks from the eateries but the premium paid for this convenience is way too high....

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Millionaire or not, plan for retirement.

Being a millionaire today is different from being a millionaire 30 or even 20 years ago. This is simply because a million dollars is worth less now due to inflation in the cost of goods and services. These days, even a HDB flat could cost a million dollars! So, someone with total liquid assets worth a million dollars does not impress me. What might impress me is how he got it and what he is doing or plans to do with it. I am more interested in how a fisherman does the fishing than in the fish in his basket but I...

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Made and still making money from S-REITs.

In an environment of very low interest rates, S-REITs are logical beneficiaries and in more ways than one. Regular readers would have heard this many times already. Readers who are new to my blog might want to read some of my older blog posts on S-REITs and why they are expected to continue performing well. When we invest in S-REITs, it is with a primary aim of receiving regular and meaningful income. I have also said that any capital gains would be a bonus. The outperformance of S-REITs’ unit prices has led some holders to wonder if they should divest....

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Marco Polo Marine: Accumulation mode.

On 19 June, I blogged about Marco Polo Marine’s persistent insider buying activity. I initiated a long position and I have been updating that blog post in the comments section. The latest update happened yesterday. Today, I added to my long position as its share price retraced to 34c a share. Technically, we see the Bollinger Bands narrowing on the weekly chart. Expecting a big move in share price in the coming weeks. With the MACD forming higher lows on the weekly chart, momentum is improving as sentiments towards the company turned positive. The OBV bears this out as it...

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Help disadvantaged kids with MILK.

I remember how when I was in primary school, we were made to drink a packet of milk a week by the school. My favourite was the green color one: banana flavour! I was very fortunate. There are those who are less so. Marigold HL Milk believes that milk shouldn’t be a luxury but a necessity for every child to grow into a healthy adult. The underprivileged shouldn’t be undernourished. Marigold HL MILK has committed to donating 10,000 packs of milk to MILK (Mainly I Love Kids) Fund which reaches out to disadvantaged children and youth in Singapore and overseas....

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