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Sabana REIT: Target BUY prices.

Tuesday, January 31, 2012

A reader mentioned that Sabana REIT's unit price has weakened to 88c after going XD. A further weakening in price could be an opportunity to accumulate. I have the same thought. After all, I divested a small portion of my investment in the REIT at 90c and 91c as its unit price rose in the last couple of weeks.

Question: What would be my target buy prices? Prices? Yes, I see stronger supports at 87c, 86c, 85c and 84.5c. So, I could possibly accumulate at these prices if they should be tested for support.

In a recent blog post, I said that Sabana REIT could possibly see a higher DPU in the next quarter. So, accumulating on weakness could be a very rewarding exercise. See blog post: here.

I would also pay attention to the momentum oscillators to see if the REIT is oversold at any point in time. Good luck to all of us.

Related post:
Sabana REIT: Partial divestment at 91c.


Bill said...

Hi ak

I beg to differ it seems sabana is weak as it is less popular than cache and MIT.

Why not get MIT or cache since after cd the price even goes higher? Just a thought

I bit the bullet and exited fsl trust at a Hefty loss :(

FoodieFC said...

Hi AK71
Wow, you must have bought a lot of lots in this unit to sell at 90 / 91 to make money.

I am wondering, do you have any idea what is the NAV of this stock at the moment?


Ray said...

Is it me or are Gems becoming a bullish market? People are throwing caution to the wind as if Europe is no longer a concern. Mr Market is indeed temperamental. :)

Sabana has been on my watchlist for sometime but felt that it was too exp. So hopefully I can be its shareholder soon ;)

AK71 said...

Hi Bill,

I have Cache Logistics Trust too. If past experience is anything to go by, there might come a time to buy this at a lower price (i.e. at stronger supports).

As for MIT, I believe it announced lower DPU for the last quarter reported. Existing unitholders' income was diluted. I think it is somewhat expensive.

Is Sabana REIT weak? It could be. I don't know what Mr. Market views as "weak". I do know, however, that I am able to make money from certain patterns I have observed.

Sorry to hear about your hefty loss in FSL Trust. It remains a freezer stock for me. :(

AK71 said...

Hi FoodieFC,

Buying at 86.5c, selling at 90c would book a raw gain of 3.5c. Assuming someone bought 10 lots, he would nett a gain of about $300. So, don't have to buy many lots to make money. ;)

NAV/unit: $1.05

AK71 said...

Hi Ray,

I try not to wonder at Mr. Market's behaviour but I am only human. Haha.. Well, we just do what we have to do. Stick to the plan. ;)

I hope to accumulate Sabana REIT at lower prices too. :)

INVS 2.0 said...

Hi Ak71,

As much as I want to have a wider diversification of REITs like your portfolio does, my limited funds for my age doesn't permit that. I can only rest my hopes on AIMS and Sabana. :)

Anyway, Sabana didn't hit 0.87 but I managed to sell Starhill away. :) Got to focus more on AIMS and Sabana in coming months.

AK71 said...

Hi INVS 2.0,

Diversification would be difficult for anyone with very limited funds at any age. ;)

As long as you have thought it through and are comfortable with the possible downside, stick to the plan. :)

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