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Dealing with losers, First Reit and Silverlake
By Sillyinvestor  •  January 3, 2021
First REIT I used to owned FR and during October when it plunge to 50 cents, I actually bought more of it. I calculate the worst scenario of 4 maturing 2021 hospitals' fees being halved and felt 50 Cents will be a steal. My Average price is about 72 cents. When Lippo announce unilaterally that they are doing restructing of all the hospitals, and price plunging, I do not have the luxury of time to re-calculate everything although I do remember DPU could well be Halved if all hospitals are reviewed and using a 10% yield as an estimate of fair value, I thought it can go to 40 cents, so I simply sold off all my holdings then for a small profit. After the Restructing exercise is announced, I bought back at 44 cents, believing it offer good "value". Given I intent to do it in 3 tranches and 44 cents is my first shot, I am not overly concerned with the daily price movements, there and then....
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By Sillyinvestor
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