A nibble at Wing Tai Holdings Limited.

On 22 October, I did an incomplete analysis of Wing Tai Holdings Limited to arrive at what I thought would be a nice entry price. 

Any reader who might have missed that and would like to read it, please see the related post at the end of this blog.

Today, I became a shareholder of Wing Tai Holdings Limited. 

Entry price is $1.655, a 56% discount to NAV and a few bids higher than the $1.64 per share that I mentioned on 22 October.

At this price, I am basically paying for their investment properties at book value, their development properties at a huge discount to valuation and I am basically getting their retail businesses for free. 

I shared some of these numbers in my incomplete analysis mentioned earlier.

Technically, the downtrend is intact but the momentum oscillators are forming higher lows. 

So, it seems that the stock could be forming a base and further downside could be limited. 

The chart shows stronger supports are to be found at $1.59 and $1.55 a share.

$1.55 also happens to coincide with the low formed more than 2 years ago on 15 November 2012.

Related post:
An incomplete analysis of Wing Tai Holdings.

Accordia Golf Trust: A distribution yield of 12.16%?

Some time in August this year, I was a trader for a day. The stock traded was Accordia Golf Trust. I got in at 78c a unit because I thought I saw a positive divergence in the chart and I subsequently divested at 82 and 82.5c in the same day.

The unit price went higher to touch 92.5c a month later. Some asked if I regretted selling too soon. Well, I entered for a quick trade and I had minimal risk holding on to my position for only a few hours. I made pretty good money when I exited. My action matched my motivation. What's there to regret?

Today, I became a unit holder of Accordia Golf Trust's again. This time, at 74c a unit and it is not a decision based on technicals. This time, it is a decision based on what I think is a safer entry price for the level of income the Trust is expected to distribute to unit holders.

Some might remember that I mentioned 74c in a blog post in July when I wondered at what price was Accordia Golf Trust a buy. The IPO price of 97c a unit was unpalatable to me for various reasons although the Trust promised a 7% distribution yield. I said then that 74c a unit seemed like a more reasonable price to pay for the Trust.

For the 8 months from its listing date, the Trust is expected to distribute 6c per unit to unit holders. Subsequently, the estimate is for a DPU of 6.8c per year. I am of the opinion that the first income distribution is probably safe but I am not so sure about subsequent income distributions. This is the main reason why only a much lower entry price would interest me in the Trust.

The first income distribution will happen in 2Q 2015. It is likely to be in May or June. So, there are still many months before that happens.

Click to enlarge.

Technically, unlike in August when I turned trader for a day, there is much weakness in Accordia Golf Trust's chart. The downtrend that started in late September is very much intact. There is no sign of a positive divergence. There are no reversal signals.

So, it would not surprise me if the Trust's unit price should go lower although it is testing its channel support. 74c is, coincidentally, where we find the 150% Fibo line but support could break and if it should break, the next support is at 72.5c where we find the 161.8% Fibo line.

Related posts:
1. Accordia Golf Trust: A hole in one.
2. Accordia Golf Trust: At what price to buy?
3. How to size our more speculative positions?