I am divesting 3k shares on Cambridge Industrial tomorrow. It is still a good stock but I want my money to reap a higher percentage of dividends in AIMSAMPI-REIT's near-10% than Cambridge Industrial's 7%. And besides, I need more spare cash in hand to get ready for Parkway Life REIT as I strongly believe that the boring volume indicated on its stock chart might spell a sharp fall in the price soon.
However, due to the looming US debt default crisis on Aug 2, I am not throwing everything on AIMSAMPI-REIT yet. I am loading 5k shares tomorrow first and see how things progress in days ahead. I am preparing to load another 15k shares, depending on the crisis situation.
Hopefully, by the end of next week, my portfolio should look something like this:
AIMSAMPI-REIT: 20k shares
Cambridge Industrial: 7k shares
Starhill Global: 10k shares
By the way, if you are wondering how come I am so interested in AIMSAMPI-REIT, basically this industrial REIT stock functions the same way as Cambridge Industrial but comes with a higher dividend payout. That's the reason why I am going for it.
Sunday, July 31, 2011
Saturday, July 30, 2011
Another Golden Opportunity's Approaching?
I can't stress enough on the 2 words "golden opportunity". Successful investors are born in times of difficulties. They gobble up stocks at ultra-cheap prices and hold them long enough for the economy to recover, thus sending these previously cheap stocks to sky-high prices and give these investors super-profits. Millionaires are created in this way.
Previously, I have missed golden opportunities such as the 2008 Sub-prime Mortgage Crisis & Economy Recession, the 2009 Euro Debt Crisis, and 2010 Euro Debt Crisis 2. Only a few of my stocks managed to break out of 'recession' and head for success (eg. Mencast Holdings). I won't repeat the same mistake again.
It seems that many stock websites and finance blogs are sounding alarm on the looming US debt default. Please read this latest news article to find out more. US is running out of time and may have to bite the dust hard.
Come Aug 2 and hopefully US would default its debt and plunge the world economy back to recession. Yes, my current holdings on Cambridge and Starhill Global would be affected but that's not the point. What you should be happy about is when the world is back to recession again, stock prices would fall sharply and that's the time you should enter the market and gobble up those attractive stocks previously overvalued. For example, I am setting my eyesight on Parkway Life REIT but at $1.84 now, it is very overvalued. I am also looking forward to buy more shares of Cambridge and Starhill Global to average down my purchasing price, should the second global recession take place.
My strategy now is to store up as much cash as possible and ready to deploy them in times of recession. REIT is all about long-term investment but I want to double or triple my earnings by entering the market at the right time. My 40% profit from Mencast Holdings stock has taught me this strategy.
Now, I imagine myself as the hungry eagle, waiting patiently for the big fat prey to get weakened before I rush in and enjoy the meal...
Previously, I have missed golden opportunities such as the 2008 Sub-prime Mortgage Crisis & Economy Recession, the 2009 Euro Debt Crisis, and 2010 Euro Debt Crisis 2. Only a few of my stocks managed to break out of 'recession' and head for success (eg. Mencast Holdings). I won't repeat the same mistake again.
It seems that many stock websites and finance blogs are sounding alarm on the looming US debt default. Please read this latest news article to find out more. US is running out of time and may have to bite the dust hard.
Come Aug 2 and hopefully US would default its debt and plunge the world economy back to recession. Yes, my current holdings on Cambridge and Starhill Global would be affected but that's not the point. What you should be happy about is when the world is back to recession again, stock prices would fall sharply and that's the time you should enter the market and gobble up those attractive stocks previously overvalued. For example, I am setting my eyesight on Parkway Life REIT but at $1.84 now, it is very overvalued. I am also looking forward to buy more shares of Cambridge and Starhill Global to average down my purchasing price, should the second global recession take place.
My strategy now is to store up as much cash as possible and ready to deploy them in times of recession. REIT is all about long-term investment but I want to double or triple my earnings by entering the market at the right time. My 40% profit from Mencast Holdings stock has taught me this strategy.
Now, I imagine myself as the hungry eagle, waiting patiently for the big fat prey to get weakened before I rush in and enjoy the meal...
Friday, July 29, 2011
2Q2011 Starhill Global
Starhill Global has released its 2Q2011 financial presentation. But how does it perform through my 5 indicators? Let's find out.
#1 High Current Dividend Yield of >5%
2Q11 dividend yield is 6.42%.
#2 High Expected Dividend Growth
1) Quality of properties in portfolio and quality of tenants
Starhill Global has ownership in popular shopping malls like Ngee Ann City and Wisma Atria in Singapore. Top 10 tenants contributed 52.2% of gross rent. Famous tenants are Nike, BreadTalk, FJ Benjamin, and vice versa.
2) Expected increase in property prices
While the 2Q11 presentation did not specifically state the property prices, I would expect the prices to increase drastically due to recent property inflation, the limited land area, and the increase of human traffic in Orchard Road.
3) Expected increase in rental
Maintains a healthy occupancy rate of 95.2%.
4) Acquisition of new properties
A large shopping mall in Orchard Road is under construction and expected to complete in 3Q2012. Famous global brands are switching over to Starhill's properties. Many ot its overseas properties are renovating and expanding.
#3 Low Gearing Ratio of <40%
Starhill Global has a healthy gearing ratio of 30.2%.
#4 REIT Stock Price Is Undervalued
NAV is $0.94 as of 2Q11. The current market price as of 29/7/11 remains at $0.65.
#5 The Stock Is Highly Diversified Within Itself
Starhill Global is widely diversified between retail and office sectors. It has properties in Malaysia, China, Japan and Australia.
Same as Cambridge Industrial Trust, Starhill Global is a good stock to buy and hold. While its dividend yield is lower than Cambridge, the capital appreciation in the long term is much attractive due to Singapore's main focus on retail and office sectors, and also the increasing population leading to more businesses in the city centre.
#1 High Current Dividend Yield of >5%
2Q11 dividend yield is 6.42%.
#2 High Expected Dividend Growth
1) Quality of properties in portfolio and quality of tenants
Starhill Global has ownership in popular shopping malls like Ngee Ann City and Wisma Atria in Singapore. Top 10 tenants contributed 52.2% of gross rent. Famous tenants are Nike, BreadTalk, FJ Benjamin, and vice versa.
2) Expected increase in property prices
While the 2Q11 presentation did not specifically state the property prices, I would expect the prices to increase drastically due to recent property inflation, the limited land area, and the increase of human traffic in Orchard Road.
3) Expected increase in rental
Maintains a healthy occupancy rate of 95.2%.
4) Acquisition of new properties
A large shopping mall in Orchard Road is under construction and expected to complete in 3Q2012. Famous global brands are switching over to Starhill's properties. Many ot its overseas properties are renovating and expanding.
#3 Low Gearing Ratio of <40%
Starhill Global has a healthy gearing ratio of 30.2%.
#4 REIT Stock Price Is Undervalued
NAV is $0.94 as of 2Q11. The current market price as of 29/7/11 remains at $0.65.
#5 The Stock Is Highly Diversified Within Itself
Starhill Global is widely diversified between retail and office sectors. It has properties in Malaysia, China, Japan and Australia.
Same as Cambridge Industrial Trust, Starhill Global is a good stock to buy and hold. While its dividend yield is lower than Cambridge, the capital appreciation in the long term is much attractive due to Singapore's main focus on retail and office sectors, and also the increasing population leading to more businesses in the city centre.
2Q2011 Cambridge Industrial Trust
Cambridge has released its 2Q2011 presentation. Now it is time for me to update this stock via the 5 indicators.
#1 High Current Dividend Yield of >5%
The dividend per share was declared $0.0103. Taking the market share price of $0.51 into factor, the dividend yield is computed as 8.1% annualised, far exceeding the minimum 5%.
#2 High Expected Dividend Growth
Using the 4 sub-indicators,
1) Quality of properties in portfolio and quality of tenants
Top 10 tenants account for 55% of gross rent.
2) Expected increase in property prices
Portfolio valuation increased by 5.5% from $928.5m to $1002.9m.
3) Expected increase in rental
Maintains a healthy occupancy rate of 99.02%.
4) Acquisition of new properties
Completed the acquisitions of 4 & 6 Clementi Loop and 60 Tuas South Street 1.
#3 Low Gearing Ratio of <40%
Cambridge managed to reduce its gearing ratio from 33.3% to 32.7%.
#4 REIT Stock Price Is Undervalued
While the stock price remains at a healthy value of $0.505 (as of 29/7/11). Cambridge's NAV increased from $0.61 to $0.62.
#5 The Stock Is Highly Diversified Within Itself
Cambridge's portfolio is diversified between logistics, light industrial, warehousing, industrial, self-storage & warehousing, car showroom & workshop. The diversification is expected to increase with announced future acquisitions.
Overall, Cambridge is a good buy. It has a very stable stock price but comes with a high dividend yield. It has so far the highest number of industrial properties compared to other industrial REITs, which implies wide diversification and lower risk. I will load up more shares if the US government clears the way for its debt defaulting crisis after Aug 2.
#1 High Current Dividend Yield of >5%
The dividend per share was declared $0.0103. Taking the market share price of $0.51 into factor, the dividend yield is computed as 8.1% annualised, far exceeding the minimum 5%.
#2 High Expected Dividend Growth
Using the 4 sub-indicators,
1) Quality of properties in portfolio and quality of tenants
Top 10 tenants account for 55% of gross rent.
2) Expected increase in property prices
Portfolio valuation increased by 5.5% from $928.5m to $1002.9m.
3) Expected increase in rental
Maintains a healthy occupancy rate of 99.02%.
4) Acquisition of new properties
Completed the acquisitions of 4 & 6 Clementi Loop and 60 Tuas South Street 1.
#3 Low Gearing Ratio of <40%
Cambridge managed to reduce its gearing ratio from 33.3% to 32.7%.
#4 REIT Stock Price Is Undervalued
While the stock price remains at a healthy value of $0.505 (as of 29/7/11). Cambridge's NAV increased from $0.61 to $0.62.
#5 The Stock Is Highly Diversified Within Itself
Cambridge's portfolio is diversified between logistics, light industrial, warehousing, industrial, self-storage & warehousing, car showroom & workshop. The diversification is expected to increase with announced future acquisitions.
Overall, Cambridge is a good buy. It has a very stable stock price but comes with a high dividend yield. It has so far the highest number of industrial properties compared to other industrial REITs, which implies wide diversification and lower risk. I will load up more shares if the US government clears the way for its debt defaulting crisis after Aug 2.
Monday, July 25, 2011
Portfolio Update - 25/7/11
Portfolio as of today:
Cambridge Industrial REIT - 10k shares
Starhill Global REIT - 10k shares
I have sold 1000 shares of Mencast Holdings at $0.535. I cashed in 40% profit. But in the late afternoon, this stock went up to as high as $0.56! Well, what's sold is sold, let's move on.
Actually, this is also another lesson learnt. Although a stock may far exceed its NAV or intrinsic value, it can still provide more rooms for further rises. What I could have done is - continue holding on to this stock until it has inflated so high that it reverses into a downtrend. That is, to quickly escape when the price has fallen by about 5% - 10%. But the catch is, you need to do it fast before ignorant investors realise the trend and refuse to buy at your limit price, then you might have trouble selling it off. I don't have much confidence on this and so I headed for an early exit.
One more bad news, by the way. It seems that the 2 useful blogs (read the previous entry) that provide vast information about local REITs are now dysfunctional. Hope it is just a temporary shutdown or a domain plan renewal. I still need to source for more REITs to advance my portfolio, don't leave me!
I am currently targeting MappleTree Commercial. Although some investors may want to eschew this stock due to its short history (it just entered the market as an IPO this year), I am confident of its vast potentials due to its holdings in highly-popular properties like Vivocity and PSA Building. It may present an opportunity for further rises, should Singapore economy progress to the pre-crisis level. However, some investors may not have confidence in it due to its seemingly highly-focused portfolio; it only has 3 properties in Singapore. But if we look from another angle, taking Vivocity for example, this shopping mall is the home for food and beverage, fashion, lifestyle, hypermart, entertainment, etc. This means diversification within the shopping mall itself.
(a) By Gross Rental Income for the month of November 2010
(b) By NLA as at 30 November 2010
Extracted from: http://www.mapletreecommercialtrust.com.sg/page.aspx?pageid=163
Anyway, the volume for MappleTree Commercial stock has sunk to its new low based on its 1yr chart. This implies that the stock price may experience a downtrend soon. In fact, it just fallen by 0.56% today. Could this be the signal of a downtrend? Well, I can't guarantee that. This might be a 50/50 chance. Only time will reveal the answer. I will gobble up this stock once its price falls below $0.87.
Cambridge Industrial REIT - 10k shares
Starhill Global REIT - 10k shares
I have sold 1000 shares of Mencast Holdings at $0.535. I cashed in 40% profit. But in the late afternoon, this stock went up to as high as $0.56! Well, what's sold is sold, let's move on.
Actually, this is also another lesson learnt. Although a stock may far exceed its NAV or intrinsic value, it can still provide more rooms for further rises. What I could have done is - continue holding on to this stock until it has inflated so high that it reverses into a downtrend. That is, to quickly escape when the price has fallen by about 5% - 10%. But the catch is, you need to do it fast before ignorant investors realise the trend and refuse to buy at your limit price, then you might have trouble selling it off. I don't have much confidence on this and so I headed for an early exit.
One more bad news, by the way. It seems that the 2 useful blogs (read the previous entry) that provide vast information about local REITs are now dysfunctional. Hope it is just a temporary shutdown or a domain plan renewal. I still need to source for more REITs to advance my portfolio, don't leave me!
I am currently targeting MappleTree Commercial. Although some investors may want to eschew this stock due to its short history (it just entered the market as an IPO this year), I am confident of its vast potentials due to its holdings in highly-popular properties like Vivocity and PSA Building. It may present an opportunity for further rises, should Singapore economy progress to the pre-crisis level. However, some investors may not have confidence in it due to its seemingly highly-focused portfolio; it only has 3 properties in Singapore. But if we look from another angle, taking Vivocity for example, this shopping mall is the home for food and beverage, fashion, lifestyle, hypermart, entertainment, etc. This means diversification within the shopping mall itself.
(a) By Gross Rental Income for the month of November 2010
(b) By NLA as at 30 November 2010
Extracted from: http://www.mapletreecommercialtrust.com.sg/page.aspx?pageid=163
Anyway, the volume for MappleTree Commercial stock has sunk to its new low based on its 1yr chart. This implies that the stock price may experience a downtrend soon. In fact, it just fallen by 0.56% today. Could this be the signal of a downtrend? Well, I can't guarantee that. This might be a 50/50 chance. Only time will reveal the answer. I will gobble up this stock once its price falls below $0.87.
Subscribe to:
Posts (Atom)