Cambridge Industrial Trust: Land acquisition by SLA.

Cambridge Industrial Trust Management Limited, the Manager of Cambridge Industrial Trust (“CIT”) (“the Company”) wishes to announce that it has received a formal notice from Singapore Land Authority (“SLA”) on 11 January 2011 with regard to the compulsory acquisition of land on Tuas Road, Pioneer Road, Tuas West Road, Tuas West Drive and Tuas South Avenue 3 for the construction of Tuas West Mass Rapid Transit (“MRT”) extension and road works along the Pan Island Expressway, Tuas Road, Pioneer Road, Tuas West Road, Tuas West Drive and Tuas South Avenue 3.

Based on the Company’s initial assessment, three of CIT’s 43 properties will be affected to varying degrees by this land acquisition:

1) 30 Tuas Road (Lot No 1289X pt Mukim 7)
2) 120 Pioneer Road (Lot No 3237M pt Mukim 7); and
3) 1 Tuas Avenue 3 (Lot 1422X Mukim 7)
 
All or part of the land where these properties are situated will be possessed by the Government by January 2013.

Read announcement here.

Related post:
Cambridge Industrial Trust: Equity fund raising again.
Cambridge Industrial Trust: Fails to deliver.

Courage Marine: Dual listing.

On 14 November 2010, I said that "It would have to take a very bad 4Q 2010 to destroy whatever the company has achieved in positive numbers thus far in 2010."

Although the BDI has been declining and "even if 4Q 2010 does not turn in any profit which I believe is unlikely, net profit this year is already 120x higher than the whole of 2009!" So, I firmly held on, believing that the management would declare a generous dividend when the time comes.

Courage Marine gapped up today as it opened at 22c. My overnight sell queue was filled as I reduced my exposure to the counter by half. For me, locking in a gain now is like getting the dividend in advance. After all, the declining BDI is likely to have a negative impact on Courage Marine's earnings, going forward. The BDI has already broken the previous low and it is yet unclear where the next low would be but with greater increase in bulk shipping capacity in the near future, upside could be limited as supply outstrips demand.

 BDI
 (Source: Bloomberg)


What would I do with my remaining position in Courage Marine? I would hold on to see if price could go higher either through further developments in its plan to dual list in Hong Kong or through a possibly generous dividend payout.

Looking at the chart, immediate support is currently at 21c although it seems precarious as MFI and RSI spiked into overbought regions. Any weakness could see the counter pulling back to 20c which offers a stronger support and would correct the overbought condition. Further upside could see Courage Marine retest a many times tested resistance level at 23c. I would be tempted to sell more then.

Related post:
Courage Marine: 3Q 2010 results.

Courage Marine +13.2%; latest dual listing play 
Tuesday, 18 January 2011

© 2011 - The Edge Singapore

Courage Marine seeks dual listing in HK stock exchange. Courage Marine also believes the listing will also enhance its profile in Hong Kong and in China which are becoming increasingly significant markets and facilitate business opportunities, customer relationship and business development.
Monday, 17 January 2011

© 2011 - The Edge Singapore