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AIMS AMP Capital Industrial REIT, Cambridge Industrial Trust, Golden Agriculture, Healthway Medical and Sabana REIT.

Tuesday, December 7, 2010

I know of a few who are waiting to collect more units of AIMS AMP Capital Industrial REIT at 21.5c. With an estimated DPU of 2.08c in 2011, it would have a yield of 9.67% at 21.5c. Very attractive.

Technically, volume has been very thin and momentum has declined. The rising 100dMA is providing support at 21.5c and I doubt that this support would be compromised.  If it does break, the next support is at 21c which is where we find the rising 200dMA approximating in the next 2 or 3 weeks. An attractive passive income generator with limited downside for me, I hope to accumulate more at supports.

Cambridge Industrial Trust's charts look bad.  Since 22 October, volume has been higher on black candle days. In recent sessions, volume spiked as price broke the support provided by the 100dMA. The REIT is experiencing a rapid downtrend.

The 20dMA completed a dead cross with the 50dMA and is on course to form another dead cross with the 100dMA. The 50dMA is beginning to turn down. The MACD continues its decline below the signal line in negative territory. Momentum is clearly negative. The OBV shows heavy distribution going on.

The preferential offering last month to existing unit holders at 53.1c was unattractive and closing at 52c today, unit holders would have lost money on those units. The rising 200dEMA should provide immediate support at 50.5c in case of continuing selling pressure.

Golden Agriculture formed a wickless white candle, closing at 77c. Could it retest its high of 78.5c?  I will wait to see if the MACD and MFI are able to form higher highs. Unless volume expands significantly, the MFI is more likely to form a lower high.

I maintain that the negative divergence is a warning of a possible pull back and it could be a strong one. So, I will remain cautious.

Healthway Medical's positive divergence is still in play and the MFI has formed a higher low and seems on track to form a higher high. Immediate resistance at 15c. Overcoming this could see price test 16c, the resistance provided by the declining 50dMA.

Sabana REIT's volume expanded today as it formed a wickless black candle to close lower at 94c, indicating that further price weakness is expected. Judging by the bearish attitude Mr. Market has towards this counter, I have decided to put in my buy queue at 92.5c, support provided by the 150% Fibo line, 50% being one of the three golden ratios.

At 92.5c and an annualised DPU of 8.63c for 2011, yield would be about 9.33%. Not too bad.

Related posts:
AIMS AMP Capital Industrial REIT: 2Q FY2011.
Cambridge Industrial Trust: Equity fund raising again.
Genting SP: A rebound or a reversal?
Golden Agriculture: Levitation act.
Healthway Medical: Support at 15c broke.
Sabana REIT: Fundamental Analysis.


Rookie said...

Hi AK71, Do you think Aims Amp is able to distribute 2.08 cents in 2011? The last quarter DPU is only 0.3968 cents. Full year will be 0.3968 X 4 = 1.5872cents.

AK71 said...

Hi Rookie,

Yup. You might want to read these two posts:

AIMS AMP Capital Industrial REIT: 2Q FY2011.

AIMS AMP Capital Industrial REIT: Rights issue.

Anonymous said...

Thanks AK for your insights about CIT earlier. I managed to get out of CIT @ 0.535, after the no-choice rights issue. Isn't worth the sleepless nights.

Being kaypo here - whats the ho-ha between CIT & AIMS sometime ago ?


AK71 said...

Hi SnOOpy168,

I am happy for you. :)

As for the vendetta between Chris Calvert (former CEO of MI-REIT and current CEO of CIT) and the new management at AIMS AMP Capital Industrial REIT (formerly MI-REIT), it's all history.

To cut a long story short, Chris Calvert tried to take over MI-REIT after creating the mess at the REIT when he was the CEO there. See MI-REIT's response back then on 20 Nov 2009:

Cambridge Industrial Trust has no proposal, offer nor solution for MI-REIT

Chris Calvert failed in the end and lost a big chunk of CIT's money in the process. This guy's a clown.

You could dig up more stuff by looking at the announcements on SGX by CIT and MI-REIT back then. Happy reading. :)

Rookie said...

Thanks AK71. because of Penjuru, the div will be the same as before. :)

AK71 said...

Hi Rookie,

Happy to share. :)

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