Saizen REIT: CEO bought more warrants.

Saizen REIT's CEO, Chang Sean Pey, bought 197,000 warrants today from 7c to 7.5c a piece. Persistent insider buying remains a characteristic of Saizen REIT.  This REIT is probably one of the most undervalued ones currently available in the Singapore stock exchange.

Successfully refinancing YK Shintoku's CMBS in future remains the strongest possible catalyst that would give Saizen REIT's units a lift up in price. Refinancing to bring down the current punitive interest rate of 7.07% to a more reasonable level would greatly improve the EPS of the REIT and, therefore, the DPU.

If the recent successful refinancing of the loan provided by Societe Generale for GK Choan, which attracts an interest rate of 3.8275% throughout its three-year term, is anything to go by, we could see the interest rate for YK Shintoku's loan in the region of 4% once it is successfully refinanced.  This would save 3.07% on interest payment for Saizen REIT's largest loan in its portfolio.  That would represent savings of about JPY200m a year!

The skies are clearing up for Saizen REIT and, at the moment, I do not see any storm cloud for the REIT apart from YK Shintoku's CMBS which I feel confident would dissipate in the coming months.

Other than the JPY 7.1 billion (S$108.6 million) loan of YK Shintoku (which is currently in maturity default) and the JPY 0.45 billion (S$6.9 million) loan of GK Chosei, Saizen REIT has no further loans that are due to mature in the next two financial years. This will allow the Management Team to focus on the refinancing of the loan of YK Shintoku.

Related posts:
Saizen REIT: Refinancing of loan from Soc. Gen.
Replies from AK71: All things Saizen REIT.

Charts in brief: 24 Jun 10.

LONDON (AP) -- World stock markets mostly fell Thursday after the U.S. Federal Reserve struck a note of caution in its latest assessment of the world's biggest economy, indicating Europe's debt crisis poses a risk to the recovery. Read full article here.

AIMS AMP Capital Industrial REIT:  Bollinger bands continue to narrow. Flat 100dMA is providing support at 21.5c. Rising 20dMA seems set to form a golden cross with the 50dMA. OBV is steady and MFI's decline halted just below 50%. Keeping an eye on this counter for a possible impending upmove.

SPH: Since selling away some shares at $3.82 and $3.88 on 18 June, I have been watching this counter, looking for signs of a reversal. Today, it closed at $3.79 on lower volume. The uptrending MFI suggests that the sell down lacks conviction, perhaps. OBV is flattish.  So, I have put in a buy order at $3.74 where we find the rising 200dMA.  This is a hedge.  Remember, the 200dMA support was compromised for a few sessions a few weeks back and this could happen again.

LMIR: A gravestone doji. MFI formed a lower high and dipped under 50%. OBV is flat. Negative divergence between price and volume still very obvious. 48c is reasserting itself as the immediate resistance. Bollinger bands are narrowing. Will the price go up or down? Hard to say but the negative divergence is worrisome and I am not adding to my long position here.

STI off 0.1%; Outlook not clear, says analyst
Thursday, 24 June 2010

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Charts in brief: 23 Jun 10.