Should we invest in AIMS APAC REIT in 2021?

Readers left me a few comments on AIMS APAC REIT (formerly AIMS AMP Capital Industrial REIT) recently and I decided to do a quick blog on one of my largest investments. 

Let us start with my reply to the latest comment: 

"I get palpitations when people ask me if something is safe to invest in. ;p 

"The one place where I would say our money is safe is the CPF which is risk free and volatility free. 

"Having said that, I have been invested in AA REIT for more than 10 years and it has been good to me. 

"You might want to read this and my other blogs on AA REIT for an idea: 

AIMS AMP Capital Industrial REIT: An opinion. 

"OK, maybe, this one too: 

AIMS AMP Capital Industrial REIT and free money for AK."


I should have said this earlier but if you are interesed, read Egg's comment in the comments section of this blog: HERE. 

I also posted a couple of replies to another reader's comments on AIMS APAC REIT in another blog. 

See the comments section here for Blur Sotong's comments and my replies: 

Largest REIT investments updated. 

For anyone interested in investing in REITs, maybe, read this too: 

Is investing in REITs right for you? 

Oh, if you are wondering where I got the inspiration for the title of this blog:

Neverwinter for the win!

Sneaky AK!

Bad AK! Bad AK! 

Hopefully, 2021 will be a better year than 2020.

Till the next blog, everybody stay safe!

Wilmar was $7.11 a share and DBS, OCBC and UOB?

This blog is in response to questions by readers, csky and linus.

On Wilmar, DBS, OCBC and UOB:

That price target of $5 for Wilmar which I suggested in November 2019 is outdated as Wilmar's chart pattern was damaged by the price action inflicted by the COVID-19 pandemic.

The chart has morphed since then.

For readers who don't know what we are talking about, see:

Wilmar: Target reacquired.

Wilmar's chart is showing very strong upward momentum right now.

RSI, a momentum oscillator, shows that Wilmar is overbought right now but it could stay overbought for some time.

This is because there isn't any negative divergence in the MACD which is another momentum oscillator.

As the stock price moves higher, the MACD moves higher and this positive momentum suggests price could go higher.

Compared to this, the charts of the three local banks show negative divergence.

Their higher highs in stock prices have been accompanied by lower highs in the MACD.

Softness in the local banks' stock prices is to be expected.

We could see them retreating to test immediate supports.

However, Wilmar's stock price looks like it could go higher.

How much higher?

I don't really do this anymore but I will stick my neck out this time.

You probably remember this blog from 2017:

Accumulating Wilmar on price weakness.

In that blog post, I noted that when Mr. Market was feeling very bullish about Wilmar's prospects (like now), Wilmar's stock traded at a huge premium to its NAV.

It was a really huge premium.

Today, Wilmar's NAV is significantly higher than it was in 2010.

Based on this observation, it is probably not irrational to think that Wilmar's stock price could go higher than $7.11 we saw so many years ago in January 2010.

Having said this, there is nothing wrong with taking profit.

So, selling some to lock in some gains is probably not a bad idea.

Trading around a core position?

Sounds familiar.

Buy more, sell some or hold?

You decide.

I anyhow talking to myself only hor.