31 Dec 09: Healthway Medical

At half day, Healthway Medical's trade volume exceeded yesterday's full day volume! We have a breakout on high volume! The resistance level at 13c has been taken out with a vengeance. Price touched a high of 14c before closing at 13.5c. If we have confirmation in the next session, a retest of 14.5c, the top of the earlier cup pattern is at hand.

MACD has risen strongly above zero. MFI did a sharp about-turn, forming a higher low in the process. OBV continues to rise, indicating continuing accumulation. A retest of 14.5c seems very likely. If 14.5c is taken out, I see an intermediate target of 17c, followed by an eventual price target of 19.5c!
30 Dec 09: Healthway Medical and Golden Agriculture

AIMS-AMP Capital Industrial Reit (MI-REIT)

As expected, a re-rating upwards:

From Business Times, 30 Dec:
Moody's upgrades AIMS-AMP Capital Industrial Reit
Re-rating follows recapitalisation exercise

MOODY'S Investors Service has upgraded AIMS-AMP Capital Industrial Reit's corporate family rating to Ba2 from Caa1 following its recent recapitalisation exercise.

The industrial trust - which was formerly known as MacarthurCook Industrial Reit - underwent a change of name after a recent debt-and-equity-raising plan. The Reit placed out shares to new investor AMP Capital Holdings and existing sponsor AIMS Financial Group as well as other cornerstone investors. This was then followed by a rights issue and a new term loan.

Concluding a rating review that was started on Nov 9, Moody's said that the rating outlook for the Reit is stable.

In addition, its liquidity profile has improved substantially, without material refinancing needs in the near term, Moody's noted. The Reit's debt/capi-talisation leverage has fallen to 30 per cent, from 47 per cent as of Sept 2009. The Reit's major borrowing, a new $175 million term loan, is only due in December 2012.

Strategy: I bought a large chunk of MI-REIT at 20.5c after the recap exercise. At that price, it gives a yield of about 10%. It's trading at about 30% below NAV. It has the lowest gearing amongst Singapore industrial REITs. For anyone looking for high yield at a bargain, this is a BUY even at 21.5c. Once again, look to TA for guidance on entry and exit prices.
High yield portfolio