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AIMS AMP Capital Industrial REIT: 23c support?

Monday, September 13, 2010

This REIT is attracting more interest as volume expanded again today as price rose to close the day at 23.5c.  23c resistance has been taken down.  Could we see 23c turn support this time round after it failed to do so in early August?

Taking a look at the momentum oscillators, the MFI has formed a higher low which signifies strengthening demand while the RSI has risen sharply into the overbought region which suggests strong buying momentum and that buying in now could bring with it higher risk. OBV has turned up sharply, suggesting accumulation.  All the technicals are promising and whether 23c could be the new support needs confirmation.

This REIT would go XR on 15 Sep, 2 days from now.  Expectations are for the price to weaken to around 21c (TERP) then.  It would be interesting to see if it pans out.

Related post:
AIMS AMP Capital Industrial REIT: Rights issue.


Anonymous said...

Even Cambridge is shooting up. Any idea what is driving both AIMS and Cambridge?


AK71 said...

Hi DC,

Both AA REIT and CIT have very high yields. They are also trading at a discount to NAV. They could simply have caught the eyes of investors who feel that things are looking up for the economy and feel safe enough to invest in smaller S-REITs giving double digits yield now.

Personally, I believe that if we invest in undervalued counters with strong fundamentals and attractive yields, we cannot go very wrong. :)

Anonymous said...

Sigh ... every one chase yield until the yield is less than 4%. :( Looks like its better to trade than to buy REITS.


AK71 said...

Hi DC,

At 4% yield, AA REIT would have to be trading at 52c a unit with an estimated DPU of 2.08c a year (XR)! I think I would liquidate long before then. ;)

mark said...

AK, I got a comment from my side about this counter. He doesnt quite agree that this rights issue is made to increase DPU. Someone reviewed the DPU over the past years. It has been falling over the years, notably since the last rights issue. Hence, wouldnt this rights issue at best, restore 'some' of the DPU that should have been there all along in order to justify this rights issue as something worth the while. Else 'paying back the divdends' may appear to be the case here.

That is the feedback I got. For your comment pls.


Paul said...

Hmmmm, buying for CR or XR? buying now would cost an average of 21.2 cents, rising quite a bit.

How to apply for excess rights?

AK71 said...

Hi Mark,

I think the person whom you spoke with probably has a history with this REIT. ;)

We have to avoid the memory effect.

For anyone who has owned MI-REIT in the past and was heavily diluted due to the rights issue late last year, he should forget about the past and invest based on the merits of the current proposal. It is quite simple. I will not let a bad past experience prevent me from making money now. :)

AK71 said...

Hi Paul,

Yes, the price has gone up quite a bit. I guess people really dig this rights issue. :)

You will receive instructions on how to accept and pay for the rights you have been allocated if you are an existing unit holder. Instructions on how to apply for excess rights should also be included then. Check your mailbox regularly. ;)

Anonymous said...

MI-REIT and AIMS REIT are 2 different animals in my opinion...different sponsor, different REIT Manager, different bankers and different cornerstone investors.In some sense, it was a RTO haha !


AK71 said...

Hi Nick,

I agree. Unfortunately, there will be people who do not see this.

A very simple question to ask someone who was vested in MI-REIT and who now harbour reservations towards AA REIT is: "If you were not vested in MI-REIT before, would you buy AA REIT now based on the current numbers?"

Freed from the chains of past memories, I am sure the answer would be a resounding "YES". ;)

Drizzt said...

Babcock screw people over with their fund
MIIF lost their value over with their fund as well.

If you are doing some sort of risk management when managing who your daughter dates, would u say that hey its another boy but he is from the same neighbourhood so he should be a good kid?

AK71 said...

Hi Drizzt,

Wah! Cheem...

I would say that the boy might be from the same neighbourhood but he could be a good kid. ;)

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