First REIT never did test 80c after it went CD. The highest it touched was 78.5c. This morning, after it went XD, its unit price declined to a low of 76c.
I made a decision to divest units which I accumulated at 76.5c and 77c earlier last month in January. I managed to sell at 76.5c as 77c could once again assert itself as the immediate resistance.
Overall, I still make a gain as I would collect a DPU of 1.93c payable on 29 February on these divested units. Therefore, it has turned out rather decently as a trade.
When would I again add to my remaining long position in the REIT? I see stronger supports at 75c and 74.5c. Could we see them tested in the next two months? Your guess is as good as mine.
Related post:
First REIT: FY2011 results.
2 comments:
Hi AK,
A novice question here.
If you sell on the day it XD through overnight sell order, you are still entitled to the dividends right?
Hi Ray,
Yes. :)
Whoever buys on XD will not be entitled to the income distribution.
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