FSL Trust: US0.95c DPU.

FSL Trust has declared a DPU of US0.95c, payable on 26 November 2010. The EDGE has a good write up and the following provides some solace to unitholders worried about the early termination of charters by Groda for the two ships:

"Revenue for 3Q FY10 declined 4.9% year-on-year (y-o-y) to US$23.4 million compared to US$24.6 million in 3Q FY09. The 3Q FY10 revenue includes freight revenue of US$2.5 million earned by the vessels FSL Hamburg and FSL Singapore deployed in the product tanker spot market during the period.

"This mitigated the loss of bareboat charter lease rentals of US$3.8 million for the quarter due to the premature termination of bareboat leases for FSL Hamburg and FSL Singapore."

The decline in overall revenue is expected but it was not as bad as feared. This could possibly explain the strengthening unit price of the trust over the last couple of months.

Technically, it seems that price has hit resistance at 48c.  Could the rising 20dMA give a much needed nudge for price to move higher?  Could the more benign news plus income distribution be positive catalysts?

OBV has been gently rising which suggests that some quiet accumulation has been taking place. MFI, with its higher lows, suggests sustained demand.  Indeed, we could see the MFI decline a bit more to retest 50% and the uptrend would still be intact. MFI is a function of price and volume. So, a slight decline in price or volume or both would see it coming down.

The declining 200dMA should provide a rather strong resistance at 50c in the event of a further upmove in price. I would do a partial divestment if unit price should rise to that level.

Related post:
FSL Trust: Approaching target.

First Ship Lease Trust to distribute US0.95¢ per unit for 3Q
Friday, 22 October 2010

© 2010 - The Edge Singapore

Tea with AK71: ASSI is on Twitter!

Some time back, a reader, Chu Yeow, asked if I was considering getting a Twitter account.  Being an IT dinosaur, I was already caught up with blogging and I was not sure what Twitter did and I didn't see the need for it. What I do know is that it has a little bird logo.

Anyway, today, I decided to just register for a Twitter account and see how it goes (although I still do not know if it would be something useful or not).  After all, I see many blogs with "Follow me on Twitter" buttons too.  OK, ok, I know. I should not just do something because other people are doing it.

My Twitter ID is "AK71SG".  It is a shame that the ID "AK71" was already taken.  So, "AK71SG" is the next best thing since I am AK71 and I am in Singapore. Very clever, don't you think? ;-p

If anyone has any idea as to how I could derive benefits from having a Twitter account, please share with me by leaving me a comment.  I would be most grateful as, obviously, I am not the most IT savvy person around. :-)