Author: A Singaporean Stockmarket Investor (ASSI)

How did AK71 overcome his losses and grow his portfolio?

I get quite a few comments in my blog and some comments require more detailed replies than others. I have decided that for more detailed replies, I should put them up as blog posts from now. This one is in reply to Ray’s comment here. Hi Ray, Actually, when I finally fully divested from CitySpring, I did not lose money. See: CitySpring Infrastructure Trust: Thoughts on divestment. I was also spared the subsequent rights issue. See: CitySpring Infrastructure Trust: Rights issue. Up till now, for me, the trusts which I count as heavy losses are MPSF and FSL Trust. For REITs,...

Read More

REITs and rights issues: A Singaporean tale.

Some readers told me I should let my hair down and try blogging with a more local flavour. Should I try to inject some local flavour into my blog? Hmmm… REITs have been getting a lot of attention lately and, generally, I think it is a good thing. However, I would like to see more balanced write ups which would do the subject justice. Recently, another article in the newspapers was brought to my attention. The article is by Teh Hooi Leng, titled “The REIT myth busted.” With a title like this, despite any claims to the contrary, the immediate impression given is a...

Read More

Bearish or bullish? Listen to experts?

Towards end of the year, often investors look forward to a run up in share prices. Some look forward to the Capricorn Effect which is expected to happen at the start of the new year. Could it happen again or would the mountain trekking herbivore do a disappearing act? Personally, I am sticking to my plan of holding on to dividend generating investments and not adding unless compelling value is evident. I do not know if the bear is going to strengthen or if the bull would make a dramatic return. I definitely do not know when either scenario might happen....

Read More

An article on REITs by Colin Tan.

A reader, Ray, brought to my attention an article in TODAY. This was in the comments section of a recent blog post. To read the comments, see: REITs with pedigree are safer? – Comments. A few lines from the article concerned: … it must be said that REIT managers have mostly had to acquire their properties on the higher side of valuations if only because it is the only way they can get the owners to sell it to them. A REIT can get a property on the cheap only when the owner is ignorant of its true market...

Read More

REITs with pedigree are safer?

Many have told me that I am playing with fire investing in the REITs that I do and by now, regular readers would know how I would reply to them. Some who do invest in REITs tell me that they only invest in “blue chip” REITs because these have strong “blue chip” sponsors and more likely to survive a downturn. They would still avoid the REITs I am invested in. I don’t have a problem with that. I just read this in The EDGE: “Moody’s Investors Service said it has a stable outlook for Singapore Real-Estate Investment Trusts. However, stress...

Read More

Cambridge Industrial Trust: Templeton and acquisition.

In a blog post dated 14 October, I said that Cambridge Industrial Trust is worth another look as I expect its income to bump up in 2012 and 2013 without any need for further fund raising. It is interesting to note that subsequently on 1 November, Templeton became a substantial unitholder. Announcement here. More recently, the Trust has proposed the acquisition of 3C Toh Guan Road East for S$35.5m. This acquisition to be completed in the first quarter of 2012 is to be part funded by debt and the rest by cash. The acquisition is expected to bump up annual DPU by...

Read More

K-REIT: Better buy now?

Unlike the recent rights issue for LMIR, there is little to be gained from selling units in K-REIT and buying the rights. The former so far touched a low of 88c while the latter, a low of 2.4c. Buying the rights at 2.4c would mean a total price of 87.4c per unit when they are converted into regular units. In a my blog post of 18 Oct, I said that “given my very small position in K-REIT, I will most probably subscribe to the rights issue. If I were not invested in the first instance, I would not bother buying in...

Read More

Stakeholders should worry as credit is tightening.

Credit is the lifeblood of businesses and credit is tightening. Banks in the eurozone are finding it harder to get funding and they have begun repatriating funds from overseas. These banks now refrain from lending and liquidity is drying up. Eurozone governments are also struggling to raise funds and even France was recently forced to pay higher interest rates on newly issued debt. “The euro zone debt crisis is turning into a global liquidity crisis, and leading to a vicious cycle of intensifying funding tightness spurring dumping of risk assets,” said Kazuto Uchida, an executive officer and general manager...

Read More

LMIR: Sell the rights?

For those who bought some LMIR rights in the fire sale recently, a question could have formed as to whether they should sell the rights and lock in some hefty gains which could be as much as 100%. That it took just two days means it is basically free money since it is within the contra period. Indeed, from a trading perspective, why not? Traders would say that taking profit is never wrong. If price of the rights were to go higher tomorrow, I could sell some as well since I have accumulated a sizeable long position. Question, at what...

Read More

LMIR: Why did the rights plunge in price and what did I do?

To say that I was not surprised by the plunge in price of LMIR’s rights is definitely untrue. I did expect further weakness but the steep plunge downwards was unnerving, made worse by the spike in trading volume. Going by the number of comments in my blog, many others were similarly affected. So, do we press the panic button and start frothing at the mouth? Nah, we should get really greedy. Hey, there is a fire sale going on. Some asked me if I had any idea why the price was plunging. It is quite simple, really. Price of the...

Read More

LMIR: Sinking rights.

LMIR’s rights sank today. It gapped down, touching an intraday low of 4.4c before closing at 4.6c. Is it going to sink further tomorrow? Thus far, I have only discussed LMIR’s rights issue from the perspective of its fundamentals. What about a TA? For seasoned and orthodox practitioners of technical analysis, they will say that it is impossible to do a TA on this counter with only three sessions so far. As I am neither seasoned nor orthodox, I have in the past done TA on such counters. One that comes to mind is Sabana REIT during its IPO days. So, for...

Read More

LMIR: Bought some nil-paid rights.

I made my first transaction in the stock market since my return to Singapore. I bought some LMIR nil-paid rights at 5.6c each. Some might ask why not buy LMIR units instead as they are trading at 38.5c each cum distribution of 1.06c now. At a conversion price of 31c per rights, getting nil-paid rights now at 5.6c means a total price of 36.6c. With an estimated annualised DPU of 3.26c, post rights issue and acquisitions, we are looking at a distribution yield of 8.9% and a very low gearing of under 10%. I think this is pretty attractive. Now, if...

Read More

Tea with AK71: A short break.

I have not been blogging for a few days. I did not even look at the stock market. My portfolio is not a trading one. It is basically one that generates regular and reliable passive income. So, it is not unthinkable to just leave it alone while I take a short break. I did receive a SMS from my broker today regarding LMIR’s rights issue and how much I should transfer to subscribe to it. Other than that, I have been out of touch. Where did I go the last few days? Here is a...

Read More

STI in retreat: Sound Global, Golden Agriculture, Keppel Corporation and REITs.

STI 2,789.35 – Down 66.42 pts. Not a pretty sight, is it? Scream in panic? Run around in circles? Sell everything and jump off a cliff like lemmings? There is plenty of fear. What should I do? Stay calm and look out for opportunities. I have spent time looking at various counters and I will talk about a few here. More than two years ago, I went in big on E-pure, the current Sound Global, believing that the water industry is the logical beneficiary from constant efforts by governments around the world to improve water quality for their people. China is still underinvested in...

Read More

REITs and rights issues: Dilutive or not?

I was not the best Science student, that is for sure. I made the switch from Science to Arts at the advice of my school principal when I was in secondary school and that was probably the best advice during my school days in terms of my academic life. I do, however, remember the scientific concept of “dilution”. To me, it is quite simple. If I had half a glass of orange juice and I added half a glass of water to it, it would taste quite bad. Diluted and, in this case, half as concentrated. However, if I had...

Read More




Like us on Facebook

Follow us on Twitter