At the end of 2019, SippingCoconuts was fortunate to make a quick buck trading Eagle Hospitality Trust (EHT). How much? A decent 20%. But before that, some background information.

EHT made the news at the time due to market concerns sparked by an article by The Edge Singapore newspaper. The article highlighted a letter which purportedly meant that one of the trust’s second most valuable hotel asset, The Queen Mary (approx. 12% of total assets), was likely to be impaired, as the hotel operator which was related to EHT’s sponsor was in breach of certain lease conditions.

As a result of the market panic, EHT’s price, which had been trading around S$0.65 prior, dropped 15% to approx. S$0.55 per unit. I’m quoting all these numbers from memory here. Other publications then jumped on the bandwagon highlighting other disclosure and related party concerns with the sponsor. Thanks to these articles and amazing crowdsourced info by retail market participants which got picked

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