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Buying DBS, OCBC, UOB and cheering for IREIT Global.

Tuesday, April 7, 2020

The title of this blog pretty much says it all, doesn't it?

OK, end of blog.

Ouch!

Who threw a shoe at me?

Anyway, I nibbled at DBS, OCBC and UOB earlier in the day.

Why did I nibble at DBS, OCBC and UOB?

Well, fundamentally, we want to buy into stocks with strong balance sheets and which are good dividend payers.

More so during a time of crisis.

So, tell me why didn't AK think of investing in SIA instead?

Hey, AK is mental but not that mental.

Ahem.






If DBS, OCBC and UOB have strong balance sheets and are good dividend payers, why didn't AK buy 2 weeks ago when prices were about 10% lower?

Well, AK is growing older and as he grows older, he becomes more timid.

This is the honest truth.

Basically, I didn't know if stock prices were going to move much lower from there

I was waiting for the dust to settle.

So, has the dust settled now?

I am not sure that the dust has settled but I think the dust is settling.

What do I mean by that?

It means that the bottoming process seems to have started.

I wouldn't say that things are bullish and that everything will be fine and dandy from now.

However, I will say that things are looking less bearish for now.

Prices have risen from the lows formed on 23 March and have been moving sideways for a while.






Today, the stock prices of DBS, OCBC and UOB all broke the resistance provided by their declining 20 days moving averages (20d MA).

What this says to me is that they broke their downtrends.

It doesn't really say anything else to me.

For sure, it isn't saying that stock prices will only go higher from here.

Personally, I feel that there is probably more downside in the weeks or even months to come.

However, Mr. Market doesn't care what I think and how I feel.

So, I just do whatever the plan which I drew out at the start of this crisis tells me to do.

For clues as to what I am talking about, read this blog:

COVID-19 defeated by Mr. Market in 2021 or so...


Remember, have a plan, our own plan and stick to it.

What is acceptable to me might not be so for you and vice versa.

Just remember that I am only talking to myself here in ASSI about my plan or, sometimes, plans.





What is going to happen next?

That is an easy question to answer.

The market will either move higher or move lower.

Yes, I know.

Bad AK! Bad AK!

What does my plan say?

Well, if DBS, OCBC and UOB see their stock prices move higher or just move sideways in the near future, we should see their 20d MA turning up in due course.

A rising 20d MA will provide some support and I would buy more at supports.

Basically, we want to see any retreat in stock prices bouncing off the 20d MA then.

If this is just a relief rally and if DBS, OCBC and UOB should see their stock prices plunging once more, then, we could see the lows of 23 March again.

Indeed, stock prices could go even lower than those lows which would be consistent with the view that the COVID-19 crisis is as bad as the Global Financial Crisis or even worse.

In such an instance, I would have to see a positive divergence formed with a momentum oscillator, the MACD, before buying more.

That is the plan.

Just have to wait and see how things pan out.

Mr. Market cannot be rushed.

Neither am I in a rush.


Stay calm and play Neverwinter!





Before I end this blog, I just want to share a bit of good news with fellow IREIT Global unitholders.

If you don't already know, IREIT Global is seeing a huge spike in its unit price today.

It is up 20% right now as I am typing this!

Now, I wish I had bought a lot more when I did at 42c a unit.

50% capital gain!

If only I had a working crystal ball, right?

"Tikehau Capital raised its stake to 29.2 per cent from 16.64 per cent while CDL increased its stake to 20.87 per cent from 12.52 per cent.

"This brings their aggregate shareholding to over 50 per cent.

"Meanwhile, new investor AT Investments has also acquired a 5.5 per cent stake in the Reit"


Source: The Business Times.
"Tikehau Capital, CDL raise their stakes in IReit Global as strategic partners."





In closing, today is the first day of stricter measures that will last for a whole month to combat COVID-19 in Singapore.

Remember, be socially responsible.

We are #SGUnited.


References:
1. Have a plan, your own plan.
2. COVID-19 defeated already?
3. Largest REIT investments updated.

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