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Saizen REIT: Insider purchases continue.

Friday, May 28, 2010

26 May 2010:

Ms. Yvonne Ho Yuk Yee, spouse of Mr. Raymond Wong Kin Jeon, has purchased 300,000 warrants of Saizen REIT (“Warrants”) on the open market. Mr. Wong is therefore also deemed to be interested in the 300,000 Warrants owned by Ms. Yvonne Ho Yuk Yee and held by HSBC as depository agent.

Amount of consideration (excluding brokerage and stamp duties) per share paid or received: 6.5c.

Mr. Raymond Wong Kin Jeon's deemed interest now stands at 19,373,390  Units or 2.033% of current issued share capital. 

Given the weakness in the stock market which has made valuations more attractive, I have considered increasing my exposure to Saizen REIT through purchasing more of its warrants.  Warrants, however, do not get any income distribution and that is a big negative for me. 

Technically, things remain somewhat dicey as it remains to be seen if the unit price of Saizen REIT would be pushed down further by the declining 100wMA or if the support provided by the 50wMA would prevail.  If I were not informed by TA, I would have simply gone ahead and bought many more Saizen REIT units as the price retreated.  Marrying FA and TA has made me more cautious and a recent purchase made with the retreat in price was a smallish hedge.

Related post:
Saizen REIT: Recent insider purchases.
Charts in brief: 27 May 10 (Part 2).


Anonymous said...

Hi AK71, do you think its advisable for me to wait and see what will happen between North and South Korea?
Will any bad news even affect the stock price in ur opinion?


Anonymous said...

hi AK,
the recent panic sellings are done by a friend and he did it probably out of fear. FYI, Merril Lynch bought 1.5mil shares from him for the mother share. i added some but bearing in mind what has happened to him, i am cautious not to go over my threshold. god help us all. haha.

cheers DP

AK71 said...

Hi J,

Well, it is always darkest before the dawn of a new day. Of course, we don't really know if it could get darker. ;)

It is not perfect but what I have are the numbers and my understanding of economics which tell me that Saizen REIT is fundamentally a strong buy. However, I also do TA which tells me that the situation is somewhat dicey now.

I make decisions knowing that I have imperfect knowledge and hedging is a way to optimise returns and lessen damages.

As price went lower in recent days, I added to my position with smallish orders (at 16c and 15.5c). If price declines further, I want to be able to buy more. So, I am not going all out now.

Whether you buy now or later depends on your risk appetite and holding power. For sure, bad news from the Korean peninsula would have some impact on the stock given the proximity to Japan. You decide. :)

AK71 said...

Hi DP,

Oh, I see. Your friend bought more than he could comfortably lose? Yes, when we take big risks, we have big fears. ;)

I am somewhat perverse and half hope that price would fall further so that I could accumulate at bargain prices. ;-p

Createwealth8888 said...

We need reality check from time to time as the idea of making money from market is simple but never easy.

AK71 said...

Hi CW,

Yes, one should always put aside money that is needed in the near future and not put it in the stock market or any investment, for that matter.

We have to take risk to make money in the stock market but if it jeopardises our financial well being, then, we have crossed the line.

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