Cache Logistics Trust: 4Q and FY2011 results.

Cache Logistics Trust announced a good set of results.

Its recent acquisitions pushed distributable income upwards by some 9.2% while DPU increased to 2.1c. Annualised, distribution yield is 8.48% with unit price at 99c.

Net gearing: 29.6%.
NAV per unit: 91c.
Interest cover ratio: 8.0x

The CEO, Daniel Cerf, said that although new supply in warehouse space could come on board in late 2012 and 2014, existing demand should take up the new supply as good quality warehouse space is still in short supply in Singapore. (Source: The Straits Times, 19 January 2012).

Last month, I accumulated units of Cache Logistics Trust on weakness at 95c a unit. Those units were divested today at 99c when my overnight sell order was filled. The reason for selling? Technically, I see resistance at 99.5c and, for more than a week, unit price has plateaued at 99c.

In a rangebound situation, I look to the Stochastics for clues and it has been overbought for many sessions. Together with the formation of a doji today on the back of very much higher volume, the risk of a downward movement in price is, therefore, higher. When would a decline happen? When the counter goes XD? Perhaps.

If price should break resistance and move higher, I would still benefit with my remaining investment in the Trust. Otherwise, it would just continue to generate passive income in my portfolio. I think this is a good position to be in.

See presentation slides: here.

Related post:
Cache Logistics Trust: 3Q 2011.

Capitaland: Partial divestment at $2.48.

Just two days ago, on 17 January, I said that I see resistance at $2.48. I got this from the weekly chart as that was resistance provided by the declining 20wMA and the 138.2% Fibo line.

So, I put in an overnight sell order at $2.48 and it was filled later in the session today.

In very bullish circumstances, we could see $2.50 and $2.53 taken out with ease. With the formation of a long white candle on the back of very high volume, this could indeed be the case. The MACD has just crossed into positive territory and this signals the return of positive buying momentum.

In such an instance, we could see $2.65 or even $2.75 tested. It would be a sight to behold. Remember, however, that TA is about probability. Nothing is for certain.

Relates post:
Capitaland: Resistance at $2.48.