Mapletree Commercial Trust: Strong demand.

I have been asked by many people if I would be interested in the IPO of Mapletree Commercial Trust.

While I am a regular shopper at VivoCity, I am not enthusiastic about the IPO of this Trust. Why? The distribution yield of 5.5 to 5.9% seems a bit low. This is based on the price range of $0.84 to $0.91 per unit.

Mapletree Commercial Trust to raise $924m in IPO: Update
Wednesday, 06 April 2011

© 2011 - The Edge Singapore

It has just been reported that the initial public offering has already been five times covered and the IPO is likely to be priced between the midpoint and top of the price range of $0.84 to $0.91 a unit.

It seems to me that there is still a lot of liquidity out there searching for better returns. Could we see a spillover effect to other S-REITs since there would be a lot of excess liquidity as this IPO is expected to be many times oversubscribed? Why not?

Mapletree Commercial Trust’s $924m IPO 5 times covered
Wednesday, 13 April 2011

© 2011 - The Edge Singapore

Allgreen: Looking to initiate a long position.

I was just reading Allgreen's 2010 Annual Report and I must say that I like the numbers:

EPS: 14.23c which means a PER of just 7.65x at today's closing price of $1.09 per share.

NTA per share: $1.62 which means it is currently trading at almost 33% discount to NTA.

Gearing (Net debt to equity): 0.18x (which I believe is very conservative).

Dividend per share: 5c (XD 5 May 2011) or a yield of 4.59% at today's price.

Technically, the counter could experience some near term weakness as recent attempt to move higher was half-hearted on lackluster volume. The descending 100dMA is still the resistance to watch and that is currently at $1.12. Volume has been increasing as price retreated. OBV has turned down rather sharply, a clear sign of distribution.

Connecting the lows of 24 Feb and 15 Mar would give us a trendline support and a move to test this support is likely as the Stochastics is still bordering on overbought. A correction of the overbought condition could see a weaker share price and I could initiate a long position at $1.06 or $1.07 (50dMA).