Cache Logistics Trust: Downtrend intact.

After a brief two sessions of trading above the downtrend which started on 28 Jan, its unit price is once again within the downtrend. Fundamentally strong, this REIT's technicals are somewhat weak. The OBV suggests that distribution is ongoing.  

Could the divestment on 21 March by substantial shareholder, Morgan Stanley, have spooked investors? Morgan Stanley's stake in the REIT reduced from 7.1860 % to 6.9790 %.

With the chart spotting positive divergences and with the MFI suggesting some underlying demand, I expect the supports to hold up if retested. Unless distribution activities cease, it would be hard for price to move higher, however. So? This REIT could be bottoming too and, based on its strong fundamentals, I would accumulate on weakness, if any.


Related post:
Cache Logistics Trust: Mixed signals.

AIMS AMP Capital Industrial REIT: Still bottoming?

It is quite clear that this counter was in a downtrend until two sessions ago when price broke out of a steeper downtrend which started on 17 Feb 2011. Breaking out of the downtrend on very low volume could mean that the counter is starting a period of rangebound trading as it finds a bottom.  If this were true, we could see price trapped between 20c and 21c for a period of time.

Although the MACD histograms formed a higher low, the MACD itself did not although we could see it forming a higher high if the bouyant price action should continue. The higher lows on the MFI are quite obvious and the OBV has flattened in recent sessions. The mad selling down has ceased and the REIT has found support for now.

Fundamentally, it is a value proposition at 20c/unit as it would mean a distribution yield of 10%. With its loans not maturing until almost 3 years later and at a very low interest rate of 2.16%, there is very little risk in parking our funds here if we are looking for high yield investments. It is reasonable to assume, therefore, that its yield should lend support to its current unit price.

Related post:
AIMS AMP Capital Industrial REIT: Positive divergence.