Marco Polo Marine: Still cheap.

I have not sold my shares in Marco Polo Marine as its price rose in recent weeks. In fact, I am looking to add to my long position if its share price should do a retracement to support.

OSK Research on 18 Jan 13:
Marco Polo Marine is enjoying 20% premia on its vessel charter rates in Indonesia, yielding a 50 - 60% gross margin on its Offshore Support Vessels (OSVs), due to the severe supply shortage in the country caused by the cabotage law. Target price: 61.0c.

Marco Polo Marine could be continually re-rated upwards over time.

For anyone patient enough, investing in Marco Polo Marine could be very rewarding. It is still under-appreciated and I hope it stays this way for a while more.

Drawing a Fibo fan, it is easy to see that the 20d MA is the immediate support and it also coincides with the 50% line. Share price could move higher from here, hit the 38.2% line before retracing to test the 61.8% line for support or it could move up from here in a fresh attempt to form a higher high. The resistance to watch is at 43c.

Related post:
Marco Polo Marine: Will buy more on pull back.

Good and cheap(er) pineapple tarts.

Chinese New Year is round the corner and I see pineapple tarts for sale everywhere! I have a severe weakness for pineapple tarts, you know.

I felt so tempted by the yummy looking tarts but they were all so expensive. $18 to $20 for a small container is quite normal. Nope! I refuse to give in to temptation. Actually, being turned off by the price tags made it easier to deny myself any gastronomical satisfaction.

Lucky for me, a friend recommended this brand which is being sold at NTUC Fairprice supermarkets.

450gm of yum yum!

Now, it is not the cheapest on offer at $7.80 for 450 gm but it looks quite good. I brought it home, left it in the kitchen and the next day my sister told me that my niece ate 6 pieces at one go. Verdict, it must be good!

Actually, it reminds me a bit of the ones sold at Bengawan Solo but with a smaller price tag.

Er, I am not related to the "Chewly" brand in any way and this is not a paid advertorial. Just sharing what I think is good value for money. Enjoy!
-------
P.S. I just looked at my Deals.com banner in the right sidebar. They have some special offers from more atas establishments for pineapple tarts. You might want to check these out. (9.50AM)

This sounds like good value for money:
CNY Cookies (Choice of any 3 Boxes)
– Only $20 instead of $54
- pineapple tarts ($7.80 for 1 box instead of $18)
For your convenience, here's the link: Pineapple Tarts.

Sabana REIT: An 8.14% yield even now!

Sabana REIT's unit price rose today as expected. It closed 3c higher per unit. Annualised, anyone who bought at $1.185 today would be looking at a distribution yield of 8.14%.

UOB KayHian has a BUY recommendation on the REIT and a target price of $1.30 which means a yield compression to 7.42%. Don't ask me how they determined the target price. I have no clue. However, their call could help push the unit price of the REIT higher if there are enough people who believe the recommendation.

What do I think?

Well, I wrote a piece not too long ago in response to a friend's question as to whether he should buy into Sabana REIT. Anyone who is thinking of buying into Sabana REIT or any other REIT for that matter might want to read that blog post: 5 steps to take in REIT investment.

What about my opinion on Sabana REIT in particular?

Well, although an 8.14% distribution yield is relatively high even when compared to AIMS AMP Capital Industrial REIT which currently yields some 6.4%, I would say that we should exercise caution as almost half of Sabana REIT's leases by gross revenue would be expiring this year.

Although I am optimistic that most, if not all, of the leases would most probably be renewed and with some positive rental reversions to boot, there is always a chance that things could go wrong. Mr. Market will be Mr. Market. Or am I wrong to say this?

For anyone who is attracted to the distribution yield and we can understand why this is so especially in the extremely low yield environment which we find ourselves, having a long position as a hedge even at the current price could be considered. However, bear in mind that we could see unit price retracing once the REIT goes XD in a few days from now.

You know yourself best (I hope). So, if seeing the unit price decline by a few percentage points would cause you anxiety, please think twice about buying now. Of course, there is no guarantee that a decline would take place but the probability is for this to happen than for price to go higher when the REIT goes XD.

For those who already have a long position in the REIT, buying when there is a retracement to support would seem like a more logical thing to do. Buying last month when unit price was at about $1.10 instead of now at $1.185 would give you an idea of what I mean.

Anyway, I will leave you with this technical picture and let's see if you can spot the signs which would suggest that caution on the part of bulls would be rather wise.

Have a good weekend.

Related posts:
1. Sabana REIT: 4Q 2012 DPU 2.41c.
2. 5 steps to take in REIT investment.

Sabana REIT: 4Q 2012 DPU 2.41c.

The management of Sabana REIT have once again exceeded their own forecast and they have announced a DPU of 2.41c for 4Q 2012.

The REIT goes XD on 23 Jan 13 and the income distribution is payable to unitholders on 28 Feb 2013.

Gearing: 37.6%

Interest cover ratio: 5.4x

NAV/unit: $1.07

All in financing cost: 4.3%

The numbers are all good except for the fact that 44.7% of leases by gross revenue are still expiring this year. There is no news on any progress made towards the renewal of these leases and that could explain Mr. Market's more cautious attitude towards this REIT.

Sabana REIT's distribution yield is currently the highest in the S-REIT universe. Annualised, we are looking at a distribution yield of some 8.38% based on the last closing price of $1.15 per unit.

Unless it is able to assure Mr. Market that all of the expiring leases in 2013 are being renewed and with positive rental reversions to boot, its unit price could find it harder to rise much higher.

In the meantime, however, we could see unit price moving higher as the REIT goes CD tomorrow.

See presentation slides: here.

Related post:
Sabana REIT: 3Q 2012 DPU 2.34c.

Bona fide invitation or phishing site?

I received this in my mailbox today. Highly suspicious!

Here, phishy, phishy, phishy!

Hello,

You were recently chosen to represent your professional community, deeming you eligible for the inclusion in the new 2013 Edition of Worldwide Registry for Business Professionals.

We are pleased to inform you that your candidacy was formally approved on October 1st, 2012. Congratulations!

Click here to verify your profile and accept the candidacy

The Publishing Committee selected you as a professional based not only upon your current standing, but focusing as well on criteria from executive and professional directories, associations, and trade journals. Given your background, the Director believes your profile makes a fitting addition to our publication.

There is no fee nor obligation to be listed. As we are working off of secondary sources, we must receive verification from you that your profile is accurate. After receiving verification, we will validate your registry listing within seven business days.

Once finalized, your listing will share prominent registry space with thousands of fellow accomplished individuals across the globe, each representing accomplishment within their own geographical area.

To verify your profile and accept the candidacy, please click here.

Please kindly note that our registration deadline for next year's publication is January 31st, 2013. To ensure you are included, we must receive your verification on or before this date.

On behalf of our Committee I salute your achievement and welcome you to our association.


Sincerely yours,

Robert C. Anderson
Vice-President, Publication Division
Worldwide Registry for Business Professionals

1833 Tennessee Avenue
Southfield, MI 48075
248-317-0041



So sweet! Must be bad for me!

I wonder what achievement are they referring to? Light on details and heavy on flattery. The Chinese have a saying for this. I can't quite remember the exact words. Help!

The email invitation doesn't even have my name on it! Oh, in case you think it was sent to my office email address, no, it was sent to my private email address. Duh.

Phishing is the act of attempting to acquire information such as usernames, passwords, and credit card details (and sometimes, indirectly, money) by masquerading as a trustworthy entity in an electronic communication. (Source: Wikipedia)

You might also be interested in:
ASSI received US$15m offer!

Staying optimistic about 2013.

Feeling worried about 2013? At least the Americans should be feeling optimistic. Well, that is according to Warren Buffet et. al. in this video clip:



At the end of the clip, everyone seemed to be saying the best time to buy stocks and to start a business is when the economy is in the doldrums. Words of wisdom.

If the American economy finds its feet again, logically, that would be good news for Asia.

We can only wait and see, I suppose, but if these people are right, the worst could be over. Then, the bull market could have legs!

Related post:
Why is Warren Buffet the world's greatest money maker?