More information on REITs.......
KUALA LUMPUR: Malaysia’s real estate investment trust (REIT) market is expected to swing upwards closer to their net asset value (NAV) in the next six months, with the entry of new players that can attract foreign investors, said Hall Chadwick Asia Sdn Bhd chairman Kumar Tharmalingam.
Besides YTL Corp Bhd’s Starhill REIT, he said the bigger ones that could cross the RM4bil threshold include Sunway REIT, which has a stable brand name including Sunway Resort and Monash University.
“The moment an individual REIT achieves a value of RM4bil, it will attract foreign investments.
“Foreigners may put in US$100,000 into the REIT, or maybe buy 5% or 10% of it,” he told reporters after speaking at The Edge Investment Forum on Real Estate 2010 on Saturday.
He said with a bigger local REIT market, foreign investors may even opt to put a large sum in one of the larger REITs and spread the rest of the investments into smaller REITs.
“Right now, with the exception of Axis REIT, most are trading at about 15%-18% below NAV, compared with property stocks, which are trading at 30% below NAV,” he said.
Among those that are expected to trade closer to NAV are Quill Capita Trust, Axis REIT, Starhill REIT and UOA REIT as they have plans to attract foreign investors, he said.
Tharmalingam said the NAV would also rise due to the revaluation of undervalued properties such as those under UOA REIT. — Bernama
17 comments:
Today, swap keladi stake to TH plantation. sold keladi at 16sen; bought more TH plant at 1.55-1.56, raising TH plant stake to top 2 holding in portfolio
Update portfolio + ultramargin line
1. Pharma 63.7% (cost: RM 4.30)
2. TH plantation 44.5% (cost: 1.56)
3. Keladi 35% (cost: 15.7sen)
4. Tomei 30% (cost 55 sen)
5. CCM Duopharma 26% (cost 2.39)
6. Yilai 25.6% (cost 77.5sen)
7. Bonia 12.3% (cost 1.005)
8. UPA 8.2% (cost 1.40)
9. Cresbld 4.9% (cost 73sen)
Second portfolio + margin line
1. TH Plantation 205% (cost: 1.52)
2. Keladi 28.2% (cost: 16.2sen)
3. Chuan 16.2% (cost 60.5sen
Hi hng,
Just wanted to know is there any particular reason u r loading on TH plantation. I really admired ur trading skill and just wish to learn more. Hope you will share. Thanks in advance.
Steve
I'm overweight on TH plantation mainly due to its upcoming final dividend of 8.5sen. In fact, i'm expecting TH to announce these dividend either today or tomorrow or at least by these week
No trading today; Both portfolio already fully invested!
hng,
you got it finally, :)
5112 THPLANT TH PLANTATIONS BHD
Final Gross Dividend 8.5 Sen Less Tax 25%
Entitlement Details:
Final Gross Dividend of 8.5 sen per ordinary share less tax at 25%
Entitlement Type: Final Dividend
Entitlement Date and Time: 10/05/2010 05:00 PM
Year Ending/Period Ending/Ended Date: 31/12/2009
EX Date: 06/05/2010
To SCANS Date:
Payment Date: 21/05/2010
Hng,
Thanks for your explanation. But 8.5c div is equivalent to 5.4% at current price. Just wondering what will be the minimum div % that you think is worthwhile to buy the share? I find that sometimes is the div declare is between 4-6%, the stock will not rise and it quite hard to dispose. If i wait for the dividend, upon receiving, the share will drop more than the div receive. Hope can get ur point of view. Thanks again.
hng,
following on steve's comments - with 'average' dividend like for THPLant, the jump is not as big as PIE. from 1.55; If buy less than 100k with 0.6% commission, that is hardly break even (maybe your commission is lower). at the same time, we are exposed to the mkt fluctuation which may depress the price more than the rise from the div announcement. I am trying to see what is the advantage of buying THIS particular counter, or is the dividend the main impetus for this transaction, u buy b4 the dividend news release, then sell when it comes out. Hope you can explain a bit mroe detail about your thought process.
Steve and ccdev
It seem both of you are trying to figure out what my strategy on TH plant. Lets me clarify your doubt.
First of all, my trading strategy is mostly base on volume, My criteria are
1 Stock trade cum dividend
2 fundamentally healthy
3 high volume which allow me to gear up successfully using margin line and accumulate in bulk to lower down transaction cost (transaction >100k)
4.have limited downside risk.
Take for example, today i have dispose about half of stake under second portfolio, at which my cost was at 1.52; sold at 1.57-1.58, realize more than 10k profit (Even if to sell TH under first protfolio, at cost of 1.56, i still manage to record more than 2k profit).
Of course, i can wait bit longer especially ex-date for dividend is approaching, which could then send share higher, more than 1.60, by then portfolio can start realize profit from first portfolio to command higher profit margin.
All in all, the utmost important is the stock must have limited downside risk and trade cum-dividend with relatively high volume and must allow margin line to help portfolio to pare down transaction cost and gear up to as high as ultramx of 1.5x of capital, in which if aim for net profit margin of just 2%, with the help from margin line, you stand to get additional 1.5x 2% = 3%, therefore your total return become 4.5%, that is total capital in portfolio can growth 4.5% in each round of trading. If manage to record such trading every 1-2x per month + compounding every moth these ROE, portfolio can growth more than double its capital
In conclusion, my niche is on volume + margin line + slim to moderate net profit margin + consistency
Update portfolio + ultramargin line
1. Pharma 63.7% (cost: RM 4.30)
2. TH plantation 44.5% (cost: 1.56)
3. Keladi 35% (cost: 15.7sen)
4. Tomei 30% (cost 55 sen)
5. CCM Duopharma 26% (cost 2.39)
6. Yilai 25.6% (cost 77.5sen)
7. Bonia 12.3% (cost 1.005)
8. UPA 8.2% (cost 1.40)
9. Cresbld 4.9% (cost 73sen)
Second portfolio + margin line
1. TH Plantation 116% (cost: 1.52)
2. Keladi 28.2% (cost: 16.2sen)
3. Chuan 16.2% (cost 60.5sen
hng,
Congrat again for the 10K profit on THplant. :)
I am staying side way for now. Still sourcing for good counter to enter but very cautious. I believe plantation counters have the upside potential in near future looking at the surge of oil price.
Notice Genm have late buy in everyday, should be able to trigger some selling from my target price soon. :)
Well trade mate.
horse
My net profit margin is merely 3%, far behind your super 36% record...But, as always emphasize, with high volume, even slim profit margin, absolute return still ok la
I've selling more TH plant under second portfolio (cost 1.52) today, to realize more paper profit. TH plant perform less than expected, but will keep them under my main portfolio (cost 1.56) at least until end of these month depending on market condition.
hng,
thanks for such a lengthy explanation on how you operate. For me to implement, have to have some similar financing capacity. and for you to be able to sell your TH cost of 1.56 at profit, your commission must be much lower than 0.3%. i will follow your trade system and digest what i can first.
Since you are aiming for thin profit margins, your entry must be very precise (down to the cent). Is there a general timeframe b4 you buy , like 2 months before the dividend announcement (based on last year div announcement) and do you use TA to assess your entry or just use your market experience?
And for such a high volume and ultramargin play, even with limited downside risk counter, you are still exposed to the market fluctuation. On a downtrend or general 'bad news' day, the counter can still comedown. what is your cut-loss or protective mechanism that you employ?
hng, i do not expect to get 100% clear picture of what u do (i'm sure your market experience counts for a lot)but like i told horse as well, i would like to learn some things from you guys. Hope you can keep sharing some stuff.
ccdev
As you know, my strategy to beat market and realize profit are
1. volume with help from margin line + target slim profit margin = reasonable absolute return.
2. Compound every return again + consistency = absolute growth in total capital
On the other hand, my strategy to protect my capital is on top of profit, is my utmost important, with cutting loss vary from 1%-10%. As full time trader, i absolutely realize there is no 100% good return in every trade, but with gaining experience in every trade, the odds can be improve substantially.
That is main reason why i choose to be full time investor to concentrate all my effort in stock investment. With current high market level, easy money could not be expected anymore, to beat market at current level, one must pay good attention on risk and reward in every trade.
yea, i certainly think so, at current high level, it make it harder for easy money.
The best choice is when there being no good counter to buy than don;t buy. Take a good rest till the market make a turn on your side.
My pick of counter is quite focus, not as enormous as compare to hng. Being day-trader he ought to have the ability to pick a broader range than just concentrate a few. Picking good stocks naturally became his learned skill couple with day-trade experience, these make one even sharper than ever. Furthermore this is his serious fulltime work/business.
Honestly, i can't have such intuition as i am very much a longterm player & parttimer. I opt to concentrade few counters and stick to my rule of picking stock that fit in my criteria. If it doesn't fit don't buy as simple as that. My priority is dividend, that is why i always stressed on high dividend yielding stocks. Chronologically, below are my searching criterion in that order/manner :-
1) DY (>3%)
2) EPS
3) PE
4) Sector
I have a habbit to always glimpse through heavyweight & bluechip first before sourcing lower liner stocks. As you may noticed majority of my portfolio are quite heavyweight one. These type of stocks allow me to engage them long term without fearing of closing shop.
horse
Your strategy really work for you, long term holding on good stock with consistent earning growth + value appreciation + high dividend income. I'll certainly will opt your strategy, probably in next few yr time :)
Today sold more TH plant at 1.57-1.58 under second portfolio, realize more paper profit. Portfolio also today bought CCM Duopharma at 2.39-2.41 under second portfolio. Expect CCM duopharma to declare final dividend 12sen by these wk.
Update portfolio + ultramargin line
1. Pharma 63.7% (cost: RM 4.30)
2. TH plantation 44.5% (cost: 1.56)
3. Keladi 35% (cost: 15.7sen)
4. Tomei 30% (cost 55 sen)
5. CCM Duopharma 26% (cost 2.39)
6. Yilai 25.6% (cost 77.5sen)
7. Bonia 12.3% (cost 1.005)
8. UPA 8.2% (cost 1.40)
9. Cresbld 4.9% (cost 73sen)
Second portfolio + margin line
1. TH Plantation 73.5% (cost: 1.52)
2. CCM duopharma 42.5% (cost 2.40)
2. Keladi 28.2% (cost: 16.2sen)
3. Chuan 16.2% (cost 60.5sen
hng, horse,
always a pleasure to hear you guys talk stock. excuse me as i cannot contribute (at the moment) but if it's any consolation, i am trying to input what you guys say into my DNA. have a good weekend!
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