CapitaMalls Asia: Japanese properties are safe.

Quite a few people I know have their eyes on CapitaMalls Asia and they are hoping that it would go closer to its NAV/share to buy some or more shares of the company. Its NAV/share is currently $1.50.

There is some concern amongst investors that the company's Japanese properties might have suffered from the quake. The company has released a statement today reassuring investors "the properties comply with strict seismic safety standards and have not suffered any material structural damage".

"CMA’s investments in Japan, which as at Dec. 31, 2010, accounted for approximately 2% of its total assets, are primarily held through its 26.29% stake in the CapitaRetail Japan Fund which owns seven retail properties in Tokyo, Osaka, Hokkaido and Kobe."

Technically, even though price touched a low of $1.57 today on high volume. The volume is relatively lower than 28 Feb when price touched a low of $1.69. This suggests that the weakness is from a lack of buyers and not from an abundance of sellers. I would also look out for positive divergence in the making on the daily chart. The positive divergence on the weekly chart between lower price and higher MFI is still quite obvious.

CapitaMalls Asia at all-time low; the Japanese properties it has investments in “were not materially affected by the earthquake and tsunami which occurred on 11 March 2011.” CMA says the properties comply with strict seismic safety standards and have not suffered any material structural damage, while operations at the properties have resumed.
Tuesday, 15 March 2011

© 2011 - The Edge Singapore

AIMS AMP Capital Industrial REIT: Bought more at 20c.

Back from hot yoga. I think the heat is somewhat challenging. I should try yoga without the "hot" next.  Anyway, time to catch up on my blogging.

Apart from Cache Logistics Trust, I bought some units of AIMS AMP Capital Industrial REIT today at 20c/unit.

Fundamentally, at 20c/unit and a DPU of 2c per annum, I am getting a 10% distribution yield. The manager also released some re-assuring news yesterday:

1. There appears to be no structural damage to the Asahi Ohmiya Warehouse located in Tokyo, Japan, which is located approximately 345 km from the epicenter of the earthquake which struck Japan on Friday 11 March 2011.

2. A sale and purchase agreement was struck on on 21 February 2011 for the sale of the property for a consideration of JPY1.49 billion. Completion of the sale of the Property was originally scheduled to take place today.

3. The Purchaser has no right to rescind the Sale and Purchase Agreement and the completion of the sale of the Property will be rescheduled to the first practicable date following completion of the investigation and any required repairs.
Read announcement here.

This, I believe, is good news as the sale of its Japanese property is something the REIT has been working towards. The apparently good condition of the property after the quake would also mean that the REIT would  not be incurring any hefty repair costs.

Technically, we could see price going lower as the selling down at 19.5c today was quite strong with 6,599 lots sold down at that price. 19c? Possible. Maybe even 18.5c. So, why don't I wait? Well, can we tell for sure if it would go that much lower? I can't. So, I buy some now. In fact, forming a doji today tells a story in which bulls were quite strong at the closing too.

I would also pay attention to the MACD and whether it could form a higher low as price forms a lower low. That would be a positive divergence and could indicate a short term trading opportunity. I have put in a buy queue at 19.5c for tomorrow.

Something on Cambridge Industrial Trust:

Cambridge Industrial Trust rated 'buy' by DMG. Stock trades at 10% FY2011 yield, attractive relative to its peer average of 7.3% and its pre-crisis yield of 6.7%. DDM-based target price of 61 cents. MAINTAIN BUY.
Tuesday, 15 March 2011

© 2011 - The Edge Singapore