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First REIT, AIMS AMP Capital Industrial REIT, ARA and Sabana REIT.

Monday, September 26, 2011

It is kind of late and I still have a long drive ahead of me. So, this will be a quick update with very simple charts.

My overnight buy order for First REIT at 76c was filled. My other overnight buy order at 74.5c was not filled although the unit price did go that low today.


Overnight buy order for AIMS AMP Capital Industrial REIT at 19.6c was filled. I thought that many people would want to buy more units of this REIT at 19.5c, the last low. So, I queued 1 bid higher at 19.6c.


Towards the end of the day, I also bought shares in ARA at $1.13 and units in Sabana REIT at 86.5c.

Like I said in my last blog post on ARA, I did not put in an overnight buy order at $1.17 which was the next support I identified if $1.22 should fold. I said I would rather wait and see. Today, ARA's volume was rather low and $1.13 was a good 9c lower than $1.22. Could we see ARA at $1.08 next?


As for Sabana REIT, I would like to get this closer to 83.5c, its last low. At 83.5c, it would be giving a distribution yield of 10.5%. 86.5c is a few bids higher.


Looking at the chart now, I think I should have stuck to the original plan and waited for its unit price to get closer to 83.5c. Well, who knows for sure? Could have a bullish harami in the next session. ;)

Good luck to us all.

29 comments:

Leo78 said...

AK, why not just wait for a while since recession is deemed to come.. By then the prices would be pushed down further.

AK71 said...

Hi Leo78,

Sometimes when everyone is expecting something to happen, it might not happen. Things can be rather perverse that way. ;)

You might have read this:
Double dip recession or just very slow growth?

Anyway, these purchases could turn out to be quick trades if prices should go up nicely. Otherwise, I could keep them for income. :)

Calvin said...

AK,

I was contemplating on picking up First REIT as well, however I am a bit biased by my last purchase price of .725 thus did not make a move. However I did buy MCT and LMIR. I fully agree with your strategy. Can't be sitting around waiting for a recession to happen and not do anything

Calvin
http://www.investinpassiveincome.com

AK71 said...

Hi Calvin,

Then, I am in trouble since my lowest price for First REIT is 42c/unit. ;p

Avoiding the memory effect.

Good luck to us all. :)

Hwang said...

OMG AK! you made another 9 cents out of ARA!!

Deep pockets do always help in bargain hunting :)

SnOOpy168 said...

Sianz. Everytime I buy, it drops the next days. Super sianz. No eyes see.

ARA rebounded with almost 8c gains in one day. Wahhhh....Too bad, I didn't have the stomach for that kind of trading.....

Huat ah...

AK71 said...

Hi Hwang,

Remember I also got some at $1.22? Haha.. Just lucky. Thanks. :)

If ARA were to go higher tomorrow and test resistance, I would probably do a contra for some quick gains. ;)

AK71 said...

Hi SnOOpy168,

I bought more Sabana REIT at 88.5c just like you did, remember? ;)

My idea is that if it were to go up to test resistance, I could sell for some kopi money. If it were to go down, keep for passive income. You can't lose either way. ;)

FoodieFC said...

Hi AK71

I can't believe Sabana REIT went down again! I waited so long, and really thought the only way is up hence bought at 0.885 after queuing at 0.88 for 2 weeks! Market forces are so unpredictable.

Comparing to Cache, sabana reit seems much 'weaker' when faced with selling pressure. Hopefully, prices go up soon.

AK71 said...

Hi FoodieFC,

Believe it. ;)

If its unit price should retest the low of 83.5c, I would probably buy more. :)

Anonymous said...

Hi AK

Aims have been pretty weak these day
, below 0.20
Is it good time to load more now or wait till STI is at 2500 level like what many experts predict ?

Tx

SnOOpy168 said...

FoodieFC ah. You aren't the only one hor. I also queued and queued. Perhaps we could have been more patience. But, how the market moves and reacts is everyone's guess. TA or FA or not.... My current average price will yield me about 8%+ p.a. Acceptable lah. Thou I liked AIMS yield better, which sits around 10%.

Waiting for more funds to arrive (a.k.a paycheck) to buy more and hopefully these good prices are still there, when I am ready.

Good wishes to all of us lor. ^-^

AK71 said...

Hi Tx,

Everytime I try to be an expert to predict where prices will be, I end up falling flat on my face. With a very bruised nose, I realised a long time ago that the only expert is Mr. Market. ;p

Should you buy units in AIMS AMP Capital Industrial REIT now or wait? You have to ask yourself if you have confidence in the REIT and whether the current distribution yield is acceptable to you. I don't know where the price will be in future although I did buy at 19.6c recently.

You might be interested in this:
Consolidation and corporate rating.

AK71 said...

Hi SnOOpy168,

Yes, maybe at the same time Sabana REIT will retest the low of 83.5c. Wah, crystal ball so cloudy. Is that 88 or 83? Hmmm... ;p

SnOOpy168 said...

yeah AK. U just reminded that I should wear my reading glasses.

83.5 & 88.5 looks about the same on my tiny Galaxy S2 screen.

AND I am just only 40....

Something my broker will often tell me - whats that 0.5c to the price. Buy now lah. It's only $XX or $XXX dollar to the bill.

Yeah, goes my reply. That $XX or $XXX is feel good factory and WILL pay for the brokerage fee leh. Otherwise, I buay song lor.


Huat ah....

AK71 said...

HiSnOOpy168,

Yes, indeed! Only 40! :)

Huat ah! ;)

qinzheng said...

Hi AK,

one personal question, if i were to subscribe to rights issue by a counter, how do I pay them? sorry first time encountering rights issue... sad :( TigerAir..

Regards,
Qinzheng

AK71 said...

Hi Qinzheng,

Oops. Tiger.

I think you will want to evaluate whether it is worth paying for the rights. You know the company better than I do. So, you decide. :)

You want to read the comments in this blog post regarding rights issue:

First REIT: Rights issue.

Good luck. :)

Jax Woon said...

Hi Ak,

I remember you mentioning that the fair value for first REIT was 80 cents... In that case, why do u buy at 76 cents which is just 4 cents below the fair value... What is your strategy here? Is it solely for the dividends since capital appreciation might be limited?

Jax

AK71 said...

Hi Jax,

That blog post was some time back and the fair value of 80c was based on a distribution yield of 8%.

However, if we are to look at the very low gearing which First REIT has, the fair value could be higher.

Let us say the REIT increases its gearing level to 30% which is a doubling from the current level, I imagine its DPU could increase by about 20% if the acquisitions are NPI yield accretion. This would mean that the fair value (based on distribution yield) will also increase some 20%. ;)

Anyway, investing in REITs is primarily for income. Any capital gain is a bonus for me. :)

SnOOpy168 said...

AIMS REIT units consolidated . 5 into 1.

"The consolidation was approved by unitholders last Friday 23 September at the EGM of the REIT.



The Books Closure Date is Monday 3 October.



The consolidation of the units will be effected with effect from Tuesday 4 October.

The units today commenced trading on the basis that the unit consolidation has been effected as settlement of trades on SGX are on a T+3 market days basis.

Thank you for your support of the REIT."

With prices like these, I wonder how bad the odd lots pricing will be ? Need to either clear them or buy more.

INVS 2.0 said...

Hi AK71,

AIMS has been temporarily suspended for unit consolidation until Oct. :(

In the meanwhile, I am venturing into First REIT, hopefully can get my first few lots at $0.755 tomorrow. :)

AK71 said...

Hi SnOOpy168,

If its price, post consolidation, should weaken meaningfully and by that I mean a 5% decline or more, I will buy more. :)

AK71 said...

Hi INVS 2.0,

Good luck and I look forward to welcoming you on board as a unitholder of First REIT.

I am also in the queue to get more. ;)

Anonymous said...

Hi AK

I just bought AIMs at 0.20 last week and now it's on consolidation. :-(. I m new with reits, how will this affect price and divined? Why need to consolidate ?

Su

AK71 said...

Hi Su,

You want to read this:
Consolidation.

As to why they want to consolidate the units, you can read the official reasons here:
Circular dated 6 Sep 11.
Go to page 4. ;)

INVS 2.0 said...

Hi AK71,

First's price went up to $0.76. But I remained optimistic about the $0.755 price. Indeed my little patience pays off, the price fell to $0.755 before returning back to $0.76 again. I acquired my first few lots of First as a result. :)

INVS 2.0 said...

...continued

I also discovered AIMS's consolidated price to be near $1. That's a lot to get used to!

AK71 said...

Hi INVS 2.0,

Congratulations on your maiden purchase of units in First REIT. :)

AIMS AMP Capital Industrial REIT is still the same REIT last week. Don't be too disconcerted by the new unit price. ;)

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