Sold my Global Premium Hotels, for Croesus Retail Trust IPO

The stock market has been in a nice run the last few months. I made use of the chance to take profit on some of my stocks. Notably, I have sold my Global Premium Hotel, as its last quarter results were not very good + no dividend + high gearing ratio (increased borrowing costs). Price movement was hovering about 0.255-0.26. Hence, instead of tying up my funds in the counter, I decided to take profit, and divest my $ into another counter - Croesus Retail Trust.

Croesus Retail Trust IPO is now open for subscription, and will be closed on 8 May 2013 at noon. Results of the balloting will be known on 9 May 2013, and the stock will be listed on 10 May 2013. Basically, I am attracted to this IPO because of its potentially high dividend yield (8% for 2014), and the 100% occupancy rates for the 4 shopping malls in its portfolio + long term leases of > 10 years. I also believe that the current PM and government are taking concrete steps to lift the Japanese economy i.e. the worst should be over, and things can only improve from now onwards. Even though there is risk that the yen will continue to depreciate (in order to boost JP economy by making it more competitive), thereby affecting DPU, on the flip side, an improving JP economy means that people have more money, and therefore increased spending power.

Even though it is a business trust i.e. not mandated by law to provide dividends, I think that in the first few quarters at least, there management will provide attractive dividends at least for maintaining or even boosting its share price. At this low bank interest rate and high inflation times, investment in business trusts with promise of dividends, a high one at that, does not sound bad at all.

Now, the problem is just, how many lots I can get.

Update 12 May 2013: Wow, I didn't expect demand for the IPO to be so hot. I bid for 12 lots, and got nil. SIGH!

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

My holdings - January 2013

January 2013 has been a good month for the stock market. Stocks have been rallying, after fears of US and Europe crisis are quelled by cheery reports from the two economies.

For my holdings, on the REITs side, MCT has gone up by 12% during January from S$1.22 to reach a high of S$1.37 today. Sabana has also performed well, and increased 7% from S$1.14 to reach S$1.22 today. After doing some research, I noted that Saizen Reit is trading at S$0.19 which is a significant discount to its NAV value of S$0.30. Making use of the correction today, I bought some lots at its day low of S$0.188.

I sold my Singtel lots during this time for a profit of about 6%. Even though on hindsight, I should have hold onto the shares, however, as it is rather expensive at $3+, this gives it a lot of room to fall in price + tying up my limited $ resources, therefore I decided to sell it. If Temasek goes on a selling frenzy again, I can always buy it then :)

I still have my Second Chance. In fact, I bought a few more lots when it went XD recently and price dropped to S$0.40. Price movements are rather flat for this counter, but with a yield of 8.9%, I treat this stock like a fixed deposit. I am also holding on to my  Global Premium Hotel lots. Prices have gone up 8% during January from S$0.25 to S$0.27.

Other stocks that I hold include Food Empire (good prospects with expansion of business in China and India), KSH Holdings (booming construction in Singapore, good order outlook, and company is performing well), Vizbranz (bought on impulse recently on the basis that Lam Soon may privatise the company), and Biosensors (which I have been holding for close to a year, very low PE ratio of 5x). Of these, I am most inclined to sell Vizbranz to release the funds I have tied up in this counter.

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Global Premium Hotels - 2012 DPU S$0.0141

Since my last post on Global Premium Hotels, it has announced its third dividend payout of S$0.0101. Coupled with the $0.002 cents for the last two payouts, total payout for FY2012 is S$0.0141. This translates into a dividend yield of 5.2 % (80% payout ratio of net profit after tax).

With my 52,000 shares, the DPU of S$0.0101 amounts to a nice final payout of S$525.20. XD on 17 April 2013.

Given the low price at which I bought the shares, there is greater potential for the shares to go upside than down, further in view that the share is still trading at a discount to its NAV of S$0.31. I will be holding on to the shares for a long while :)

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Global Premium Hotels

Global Premium Hotels IPOed on 26th April 2012, which is a "spin-off" by its parent the Fragrance Group.

I am vested in this counter having bought some at its low point of 0.24. I hold a long term positive outlook on the shares.

Some of the reasons which I deem it an attractive buy:-
1. Current price at S$0.26 (which is also its IPO price) trading at about 20% discount to its NAV of S$0.3112.
2. Price-Earning ratio is low at 11.3.
3. Distribution of at least 80 % of net profit after tax for FY2012, estimated to be about 6% yield.

Furthermore, it has received good reviews and buy calls from various brokerages and media.

2 July 2012: 
Koh brothers increase stakes in Aspial Corp, Global Premium Hotels http://www.theedgesingapore.com/component/content/38325.html?task=view

5 December 2012: 
This is where Global Premium Hotels juices its lucky charm 
http://sbr.com.sg/hotels-tourism/more-news/where-global-premium-hotels-juices-its-lucky-charm

Buy call by OCBC
http://www.remisiers.org/cms_images/research/Dec03-Dec07_2012/GPH-121205-OIR.pdf

14 December 2012: 
http://www.theedgemalaysia.com/property/226653-global-premium-hotels-upgrades-hotels-and-opens-new-ones-away-from-geylang.html

20 December 2012:
Non-Executive Chairman Koh Wee Meng is once again accumulating Global Premium Hotels shares.
http://www.nextinsight.net/index.php/story-archive-mainmenu-60/916-2012/6236-armarda-global-premium-hotels-ezion-latest-happenings




Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

My holdings - December 2012

I hold a few REITs such as Mapletree Commercial Trust (MCT) (IPO lots) and Sabana, both of which are bought (luckily) before the awareness for REITs set in a few months ago. I feel that the prices are rather on the high side at the moment, especially for MCT, therefore, even though they have been providing me with good dividends every quarter, I am hesitant to add on to my position at this moment in time.

Recently, I acquired a few lots of Singtel when Temasek went on a selling frenzy. I thought myself lucky at that time as I had queued to buy at $3.19, and got them for $3.16. Haven't quite figured out how that came about. Anyhow, prices were hovering about $3.19 - $3.23, and dropped to $3.12 at one point since I bought them. A couple of days ago, it suddenly went up and is now at $3.31. I intend to hold on to the stocks, in view of the dividend payout end of December at 6.8 cents and Singtel being a blue-chip company.

I also hold a few small and mid-cap companies, reason being they are relatively low priced thus allowing me to buy more lots with my limited resources, and have greater potential to scale greater heights. I bought some Second Chance recently, in view of the attractive dividend payout of 3.8 cents, making it a dividend yield of 8.9% at its last done price of $0.425. In fact, I had sold the stock for a small profit after the results were released recently, when prices reached $0.45 at one point. I was looking for an opportunity to pick up the shares again, and was happy to do so when prices went down to pre-result release levels.

Another stock that I am holding is Global Premium Hotels, the hotel/hospitality arm of Fragrance, although that stock is not doing as well as I had expected and hoped. It is currently hovering around $0.235-0.245, which is lower than its IPO price of $0.26. A few reasons why I bought the stock:

a) it is selling at a premium compared to its IPO price. In fact, it is (I read somewhere) selling at a premium compared to the price at which Fragrance acquired it for $0.25.
b) Tourism in Singapore is (and still is) booming. Although there are uncertainties going on in the global financial markets, demand for economy hotels should still be there.
c) The management explained the decrease in profits during the previous quarters due to one time fees incurred as a result of IPO listing. Hence, it is reasonable to expect that profits should improve in the subsequent quarter(s).
d) Maintaining dividend payouts for 2012. So far, it has been $0.002 per quarter. That works out to 1.7% yield for half a year or 3.4% annual yield based on its last done price of $0.235.

I will watch and see if their results improve in the next quarter before deciding whether or not to divest in this stock.



Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.