Picked up some Sabana REIT today in the sea of red

The eve before Vesak Day was not peaceful at all. Well, I was expecting some kind of flat or slight negative market as it so often happens before a long weekend. However, today was kind of "bloody" in the sense that there was a sea of red in the stock market...

I was mindful of a possible correction due to the "up up and away" stock market the past few weeks. Therefore, I had taken profit on a few occasions, like selling off my Global Premium Hotel and Marco Polo after their results release recently. Therefore, I had a small war chest ready for deployment when needed.

I bought some lots of Sabana REIT today when it dipped >5% from yesterday's closing price. The price was hovering at about 1.25 - 1.285. Yield at this price range was > 7%, which still rank one of the highest amongst the REITS and a decent number at that.

I feel that Sabana's performance has been good the past few quarters. Even though there is an overhanging cloud regarding some of the master leases expiring this year, talks are underway to renew these leases. Should that happen, the stock price is very likely to increase further from the 20+ % it has increased the past year.

With this potential upside, the above yield % and REITs being a defensive stock in mind, I took the chance to get a few more lots today. I also took profit on Lum Chang, thereby filling up my war chest again ready for another deployment if so required.

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.

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.