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First REIT: Bought more at 73c.

Friday, April 1, 2011

On 26 March, I mentioned that "In a change of plan, I would increase exposure to this REIT on any weakness and this would be at 73c (100dMA), 72c (lower Bollinger) and 71.5c (the recent low of 17 Mar)." Today, I bought more units of First REIT at 73c a piece. With an expected DPU of 6.4c for 2011, this latest purchase would have a distribution yield of about 8.77%.


Today's selling down was somewhat aggressive as volume was very high, the highest since 14 Feb 2011. A long black candle was also formed. The lower shadow on the black candle suggests that there is support for this REIT. I also like how the MACD has been slowly rising even as price touched a recent low of 71.5c.

The REIT's price action looks rangebound and if we believe that there is no trend, we should pay attention to the Stochastics which suggests that the REIT is correcting from an almost overbought position. So, more weakness to be expected? Possibly and I am waiting to accumulate on any further weakness.

Related post:
First REIT: Accumulate on weakness.

6 comments:

WK said...

which joker is selling? i see many disposal at the change of shareholdings page...

why la

AK71 said...

Hi WK,

I believe that is old news but announced only on 30 March 2011.

Golden Rainbow International Limited sold down their share from 6.08% to 1.89%. This was on 14 December 2010.

The selling that took place yesterday? I have no idea who are the people selling.

I do not see any negative change in the REIT's fundamentals and, thus, increased my investment in it according to plan. :)

Anonymous said...

I checked First Reit's website. A shareholder by the name of Raiffeisen-Landesbanken-Holding GmbH has been disposing its shares.

Tee

AK71 said...

Hi Tee,

I believe that's related to Golden Rainbow International Limited and the share disposal happened last year in December.

Anonymous said...

AK,

Oh I see. Btw, given you are such an active investor, do you get calls from your broker for 'private placements'.

My friend's broker called him if he was keen in first reit at a price that I don't see registered on cdp...

Tee

AK71 said...

Hi Tee,

Unfortunately, I am not an important enough client to be offered private placements. :(

Just your average retail investor, I am. ;)

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