| Company | Portfolio (%) |
| Lee Metal Holdings | 10% |
| Singapore Telecom | 16% |
| Cache Logistics Trust | 9% |
| AIMS AMP Captial REIT | 9% |
| Sembcorp Industries Corp | 12% |
| StarHub (SRS) | 18% |
| Keppel Corp | 4% |
| Dairy Farm International (USD) | 6% |
| Singpost | 8% |
Cache Logistics Trust recently when through a share dilution private placement price at 94cents was swift. The price drop was also swift causing it to bottom at 86cents. This I believe was for a warehouse acquisition in Australia that will help to bring a net income of 7.1% and WALE of 7.7years.
I was initially upset because it was not open to unitholders. However, looking back, I think this is a good calculated decision by the the management. They were wanted to complete the acquirement swiftly, a private placement is the way to go with lesser parties involved comapred to the long process through unitholders! As long as its value added I suppose its okay!
Cache was one of the REITS i first bought. Price have drop almost 20% at 94cents since i last bought. Hence, assuming it has bottom out at 86cents, I decided averaging at 88cents. It still higher than 94 cents private placement but at least its in a better position.
As i learn about dilution of shares, I learnt that this acquisition will positively add on to cache future returns and what better chance to average down. The past few days have seen cache rising prices quite well supported raising steadily. It closed at S$0.915 today. I might still like to add some more but will have to wait for the right time seeing the slow stochastic has reached 79%. I think it might still climb up till 94cents before correction.
Singapore post stole the limelight last year when Alibaba bought 20% stake in Singpost with it's shares soaring above S$2. Singpost has been paying constant dividends 3.8% (0.068.yr @ S$1.77) and the switch of focus from traditional post to e-commence is a sign of changing with times with the support of Jack Ma and his team at Alibaba plus the exponential increase of people shopping from Taobao, it is inevitable that Singpost is heading the right direction.
Two Weeks ago(10 December 2015), CEO Dr Wolfgang Baier the man whom revamp singpost business resigned. Not much is reveal on the suddenly resignation but insiders are lamenting on the differences of views with the board of directors. I cautioned a friend on falling knives when he mentioned he was queuing at S$1.705. A day later, Singpost dropped to S$1.660. Seeing strong support over the next 1-2 days, I thought it be good to nibbled some at S$1.665. I was even bullish it was going to turn the corner as it reached S$1.68.
24 December 2015, the reversal happened when news broke that there will be an external corporate governance probe seeing the price drop 3% to $1.61(lowest in 18months)
24 December 2015, the reversal happened when news broke that there will be an external corporate governance probe seeing the price drop 3% to $1.61(lowest in 18months)
Seems like those shouting for $1.50 is becoming a reality. Should I average down abit more or save up in my war chest or just cut .
I also average down slightly on Starhub at S$3.58 to S$3.84 when I topped up my SRS account. I wanted to make sure i do not average down too much with my limited funds. Starhub as a company is highly leverage(we will talk about it next time). I am still in 2 minds if i want to cut my losses or let them roll.
