What did AK71 buy today?

Sabana REIT at 94.5c.

In the morning, before the letters "CD" came on, there was some heavy selling but it was rather well absorbed and there was a long buy queue at 94c. This was after the price touched a high of 95.5c. After some initial hesitation, I decided to add to my long position and bought more units at 94.5c which happens to be where we find the 50dMA.

Technically, things continue to look up for this REIT's unit price. OBV shows strong accumulation. The MACD looks like it would be crossing into positive territory soon, heralding the return of positive momentum. MFI spiked upwards, suggesting strong demand. All in all, rather encouraging. Immediate resistance is at 96c which is where we find the 100dMA approximating.

See earlier blog post on Sabana REIT here.

Golden Agriculture at 67c.

I increased my long position in Golden Agriculture today at 67c as the 200dMA was retested as support. Volume today is the lowest in at least a week as price pulled back to 66.5c at the trendline support which originates from the low of 23 Feb 2011.

ADX is below 20 and the DIs are approximating 20 which suggest that there is no trend. Look at the Stochastics and we see an oversold situation. Indeed, price action has reached the lower Bollinger band.

Time for a rebound? Very likely. In such an event, it would be interesting to see if price could form a higher high and that would mean higher than 73.5c, the high of 11 April. This could turn out to be quite rewarding.

See earlier blog post on Golden Agriculture here.

Cambridge Industrial Trust: 1Q 2011 results.

I must say that Mr. Chris Calvert, CEO of Cambridge Industrial Trust, has not failed suspicions that he could underdeliver. He did so and did so stupendously.

DPU declared for 1Q 2011 is 1.001c (XD 5 May 2011). This is to be paid on 14 June 2011. Annualised DPU is provided by the management as 4.06c. This is much lower than the DPU of 4.84c, post rights, as suggested by the manager. I blogged about the tricky nature of the rights issue and DPU forecast in an earlier blog post. Read it here.

At today's closing price of 51c, the annualised DPU of 4.06c would mean a distribution yield of only 7.96%. This is greatly disappointing! Has Mr. Chris Calvert outdone himself? A rhetorical question.

Property manager's fees increased a whopping 46.4% while manager's management fees increased 8% year on year. All these while the gross revenue of the REIT increased only 3.8% year on year.

Regular readers know that I do not have a high opinion of Mr. Chris Calvert and I have blogged about how the Trust has failed to deliver in the past. An example? Please read blog post here. However, I decided to be friends with Cambridge Industrial Trust again (read blog post here) and it seems that I could have been too forgiving.

Given a chance for a small gain, I would probably divest my smallish investment in this Trust. Yes, the consolation is that my investment in this Trust is a very small one. Perhaps, a wary subconscious prevented me from foolishly investing too much in this Trust.

With gearing at 33.3%, an interest cover ratio of only 4.8x and a distribution yield of less than 8%, I am better off investing in Cache Logistics Trust, AIMS AMP Capital Industrial REIT and Sabana REIT. All of these have lower gearing, higher interest cover ratios and higher distribution yields. Cambridge Industrial Trust is a loser.

See manager's report here.
See presentation slides here.