Starhill Global: Complete Divestment @ $0.63 and $0.64

At long last, after more than a year holding on to Starhill Global's shares, I have divested remaining portion of them this morning. My journey with Starhill Global began on 8th Feb 2011 when I purchased the first lot at $0.64 (also the divested price).

I made the decision to slowly divest Starhill Global after I gained interest in AIMSAMPI for its highest DPU payout of all REITs. Furthermore, AIMSAMPI is consistent with its increase in DPU, unlike Starhill. The fate is finally sealed with Starhill displayed a more volatile nature than AIMSAMPI which is a more stable industrial REIT. My plan to divest Starhill was paused for several times due to weakening market sentiments for the past year. Thankfully, this year's bullish rally has enabled me to materialise the divestment.

4 Levels of Passive Income Generation

Level 1: Development Stage

Small capital invested in high dividend-paying stocks. This is an infant stage which depends largely on active income to fund the investment portfolio.

Level 2: Hybrid Stage

Increased amount of capital invested. This is a 50/50 or hybrid stage which is funded by a balance of both active and passive incomes.

Level 3: Take-off Stage

At this stage, the investment portfolio is "self-dependent". The amount of passive income generated annually is sufficient enough to be reinvested without the involvement of active income.

Level 4: Advance Stage

In the highest level, the investment portfolio flourishes with an ability to generate huge amounts of passive income which guarantee financial abundance to the investor. Not only can the passive income be reinvested, it is also more than enough for the investor to quit his job (active income) and live comfortably on passive income.

Starhill Global: Sell Order Fulfilled @ $0.620

Continued with my plan to completely divest Starhill Global in view of its relatively stagnant DPU, I sold another batch of lots yesterday. At $0.620, technically I was making real losses since I purchased these lots at higher prices last time. But several quarterly DPU payouts have instead turned real losses into profits. I am left with only a tiny batch of lots. Should the price moves up in the next few days or weeks, the complete divestment of Starhill Global shall be materialised.

The stock market has been in a good mood since the rally began in Jan. Stock prices are breaking resistance every week. However, the rally in March has appeared to be slower than usual. In some occasions, some stocks even experienced heavy selling (eg. SGX).

I can't tell for sure whether or not this could be a market correction. I shall continue with my waiting game for now.

With divested funds returning to my main account, in addition to money earned from temp jobs, I have a larger warchest than before and is ready to exploit another market downturn.