Browsed by
Category: Stock Insights

Mapletree Commercial Trust – Why Did I Invest in the Blue Chip REIT? (Guest Post)

Mapletree Commercial Trust – Why Did I Invest in the Blue Chip REIT? (Guest Post)

Mapletree Commercial Trust had been in my “shopping list”, and a drop in its unit price of late presented a golden opportunity for me to add it to my long-term investment portfolio – which I did last Friday (03 April 2020) when the REIT’s unit price fell to my intended entry price of S$1.57.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 834 followers.

Where to shop in Harbourfront and Sentosa - Visit Singapore ...

 

Mapletree Commercial Trust (SGX:N2IU) was one of the “casualties” of the ongoing Covid-19 outbreak in Singapore, where its unit price took a huge tumble by 34% at the time of writing (it fell from its 52-week high of S$2.48 to S$1.64.)

This “blue chip REIT” had been in my “shopping list”, and a drop in its unit price of late presented a golden opportunity for me to add it to my long-term investment portfolio – which I did last Friday (03 April 2020) when the REIT’s unit price fell to my intended entry price of S$1.57.

In my post today, I will be sharing with you reasons why I’ve invested in the REIT.

Let’s get started…

 

Brief Introduction to Mapletree Commercial Trust

Mapletree Commercial Trust was listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 27 April 2011, and subsequently joining the benchmark Straits Times Index (STI) on 23 September 2019 (taking the place of Hutchison Port Holdings Trust.)

At the time of writing, the REIT’s properties in its portfolio are all located in Singapore, and they are:

  • Vivocity
  • Mapletree Business City
  • PSA Building
  • Mapletree Anson
  • Bank of America Merrill Lynch Harbourfront

 

Historical Financial Results of Mapletree Commercial Trust between FY2011/12 and FY2018/19

One of the first things I look at before I invest in any company or REIT is to first study its historical financial results (for at least the past 5 years.)

Read More Read More

Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio (Guest Post)

Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio (Guest Post)

Some insights about UOB ’s historical financial performance, along with its dividend payouts to shareholders over the years and many more.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 797 followers.

 UOB launches high street branch model at Faber House targeting ...

Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio

With my investment in UOB (SGX:U11) on 06 March 2020 at my intended entry price of S$23.26 (based on this entry price, and a dividend payout of S$1.30/share in FY2019, my dividend yield is 5.6%), I now have all 3 Singapore banks, plus another financial institution in Hong Leong Finance (SGX:S41) in my long-term investment portfolio.

In my post today, I would like to share with you reasons why I’ve invested in the bank…

 

Brief Introduction to United Overseas Bank

Before I talk about the bank’s historical financial performance, along with its dividend payouts to shareholders over the years, let me first a quick introduction about the bank.

Besides Singapore, UOB has more than 500 branches and offices in 19 countries (Australia, Brunei, Canada, China, France, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, Philippines, Singapore, South Korea, Taiwan, Thailand, United Kingdom, United States of America, and Vietnam.)

 

Historical Financial Performance of UOB over the Past 10 Years

Before I put my hard-earned money into any company, I will need to make sure the company fulfils some criteria – one of which is an improving set of financial results reported by the company over the years.

In this section, I will be sharing some of the key financial statistics reported by UOB over a period of 10 years (between FY2010 and FY2019):

Net Interest Income, Net Fee & Commission Income, and Other Non-Interest Income:

UOB’s “Total Income” comprises of 3 business components – (i) Net Interest Income, (ii) Net Fee & Commission Income, and (iii) Other Non-Interest Income.

Let us now take a look at the performances of these 3 business components between FY2010 and FY2019:

Read More Read More

Koufu Limited (SGX:VL6) – My Analysis of the F&B Company (Guest Post)

Koufu Limited (SGX:VL6) – My Analysis of the F&B Company (Guest Post)

Some insights for Koufu business, its financial results between FY2018 and FY2019, dividend payout history, catalysts and threats which I feel may positively or negatively affect the company’s growth ahead, and finally, its current vs. historical valuations.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 797 followers.

Photos for Cookhouse by Koufu - Yelp

I have received a number of requests from fellow community members in InvestingNote over the past couple of months asking me to do a company analysis of Koufu Limited (SGX:VL6).

In my writeup about the F&B company today, you’ll learn more about the companies businesses, its financial results between FY2018 and FY2019, dividend payout history, catalysts and threats which I feel may positively or negatively affect the company’s growth ahead, and finally, its current vs. historical valuations to find out whether or not at its current share price, Koufu is considered cheap or expensive.

Let’s get started…

A Brief Introduction to Koufu Limited

Koufu is a brand familiar to Singaporeans – the company operates foodcourts/coffeeshops under its namesake brand. At the time of writing, there are a total of 37 Koufu foodcourts in Singapore.

Apart from its namesake foodcourts, the company also operates foodcourts/coffeeshops under the following brand names (with the number of outlets at the time of writing in brackets):

  • Cookhouse by Koufu (5 outlets)
  • Rasapura Masters (1 outlet)
  • Fork & Spoon (2 outlets)
  • Happy Hawkers (18 outlets)
  • Gourmet Paradise (2 outlets)

The company has also businesses in the following:

F&B Kiosks & Stalls:

  • R&B Tea (27 outlets)
  • 1983 – A Taste of Nanyang (3 outlets)
  • Supertea (1 outlet)

Cafes & Restaurants:

  • 1983 – Coffee & Toast (3 outlets)
  • elemen 元素 (4 outlets)
  • Grove 元素 (1 outlet)

Shopping Mall:

  • Punggol Plaza – a 4-storey development comprising about 50 retail outlets. The mall is managed by Abundance Development Pte Ltd, a subsidiary of Koufu Pte Ltd

Overseas:

Besides Singapore, Koufu also have business operations in Malaysia and Macau, where they operate under the following brand names (with the number of outlets at the time of writing in brackets):

  • 1983 – A Taste of Nanyang (2 outlets in Macau)
  • Koufu (2 outlets in Macau)
  • R&B Tea (1 outlet in Malaysia, 1 outlet in Macau)

 

Financial Performance of Koufu Ltd between FY2018 and FY2019

Read More Read More

A Look into the Possible Share Price Movements of Singapore’s Blue Chip Companies in the Week Ahead (30 Mar – 03 Apr 2020) [Guest Post]

A Look into the Possible Share Price Movements of Singapore’s Blue Chip Companies in the Week Ahead (30 Mar – 03 Apr 2020) [Guest Post]

During the course of last week, the STI fell to a low of 2,208 points, before rebounding up strongly to finish the week at 2,528 points. In my opinion, in order for the trend to be considered as reversed (i.e. from a downtrend to an uptrend), it must close above 2,560 points when trading for the week closes this Friday (i.e. 03 April.) Otherwise, in my opinion, the overall trend is still a downward one.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 772 followers.

The share prices of quite a number of blue chip companies rebounded last week – but in my opinion, the trend is still a bearish one.

Before I proceed to analyse the share price movements of each of the 30 blue chip companies last week, and possible movements in the week ahead (for the trading week between 30 March and 03 April 2020) based on a weekly timeframe, here’s the share price movement of the STI on a weekly timeframe:
STI’s Movements on a Weekly Timeframe

During the course of last week, the STI fell to a low of 2,208 points, before rebounding up strongly to finish the week at 2,528 points. In my opinion, in order for the trend to be considered as reversed (i.e. from a downtrend to an uptrend), it must close above 2,560 points when trading for the week closes this Friday (i.e. 03 April.) Otherwise, in my opinion, the overall trend is still a downward one.

Now, let us take a look at how each of the 30 blue chip companies performed last week, and how they are likely to perform in the week ahead:

Read More Read More

Updates from Manulife US REIT & Prime US REIT (Guest Post)

Updates from Manulife US REIT & Prime US REIT (Guest Post)

Most of the REIT investors endure some extreme volatility in this March Madness. Their holdings have quite a good run in 2019.Coming into 2020, investors believe that the low rate environment is here to stay. Even when the threat of Covid-19 reaching the United States and Europe, investors rationalize that when the interest rate plunge, this must be a more conducive environment for the REITs. What comes next is that in a span of 2 weeks, many REITs saw their stock prices plunge 50%.

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with username known as Kyith and has 954  followers.

Most of the REIT investors endure some extreme volatility in this March Madness. Their holdings have quite a good run in 2019.

Coming into 2020, investors believe that the low rate environment is here to stay. Even when the threat of Covid-19 reaching the United States and Europe, investors rationalize that when the interest rate plunge, this must be a more conducive environment for the REITs.

What comes next is that in a span of 2 weeks, many REITs saw their stock prices plunge 50%.

Manulife US REIT and Prime US REIT both endure the same fate as their peers.

In the past 2 days, both REITs provided some updates to analysts, so as to address the potential uncertainties of investors.

Since then both REITs saw their share price go up 20-25%. Manulife’s share price held up better, probably because they are in the Index and are much more liquid.

Their transparency may have worked wonders for their share price. However, overall, a lot of the REITs managed to bounce off their lows.

Here are some updates that I have gathered.

 

Possible Reasons for the Sharp Price Falls

Management updated that possible reasons why the draw down was so swift was due to

  1. Manulife’s entry into the index. When index funds, exchange-traded funds systematically sell down, there isn’t many fundamentals per se
  2. There was a lot of margin calls from the Private Banks (my friend KK from RisknReturns mentioned a few days ago that the three US Office REITs may have been removed from the list of marginable stocks on private banks)
  3. Funds redeeming and switching around. They are switching from smaller stocks to more liquid stocks
  4. Ultra-rich Chinese are facing heavy margin calls (we can guess who they are). Manulife US REIT does not have them on their register

 

Are Manulife US REIT’s Properties Affected?

Read More Read More

Singapore Airlines Ltd (SGX: C6L) Is In Deep Trouble And Rights Issue Call Is Imminent (Guest Post)

Singapore Airlines Ltd (SGX: C6L) Is In Deep Trouble And Rights Issue Call Is Imminent (Guest Post)

The Covid-19 situation has hit the aviation industry really hard and in particular the airlines, SIA, since they are highly capitalized business which needs constant cashflow to fund their operating costs, capex and fixed costs. In the scenario where they have to cut capacity like where we are in this situation now, the company may be able to “save” on their operating costs since they do not have to incur charges like handling and ground charges that are related to the operating business.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs and 2068+ followers.

Image result for sg airline

Singapore Airlines Ltd (SGX: C6L) Is In Deep Shit And Rights Issue Call Is Imminent

The Covid-19 situation has hit the aviation industry really hard and in particular the airlines since they are highly capitalized business which needs constant cashflow to fund their operating costs, capex and fixed costs.

In the scenario where they have to cut capacity like where we are in this situation now, the company may be able to “save” on their operating costs since they do not have to incur charges like handling and ground charges that are related to the operating business.

But, they do have to continue paying for parking charges to the airport, levies as well as fixed costs such as salaries and rental that will continue to bleed the business.

Cashflow Simulation Run
I’ve run a simulation run where the left hand side shows their latest Q3 results for the year ending 31 Dec 2019, while the middle portion reflects what the situation is today. On the right side, I’ve accounted for movement that is related to cashflow, so things like depreciation is taken out of context because they are non-cashflow related items.

The middle portion reflects the current scenario we have today.

For example, the topline sees a 95% capacity cut which was announced just a few days ago since Singapore is on semi-lockdown situation. Consequently, I’ve adjusted the same for operating costs related such as fuel, inflight meals and handling charges.

For staff costs, I’ve used a 20% haircut across the payroll while for other fixed costs I’ve taken a 50% haircut.

The resulting loss coming in from this simulation is a negative $(1,998m) for the quarter. If we divide this by months, it means incurring a net loss of $(666m) / month.

What this means from a cashflow point of view is that should the situation prevails, the company is burning approximately $1,461m in cash every quarter, or $487m every month.

Now, this might look okay if you are in a good standing order in terms of your balance sheet but let’s see what they have today.

Read More Read More

A MUST-READ SPECIAL REPORT: BEAR MARKET 2020

A MUST-READ SPECIAL REPORT: BEAR MARKET 2020

A MUST-READ Special Report: Bear Market 2020 by @jaytun

The bull market is onto its 11th year and due to the knee-jerk reaction to the fear for the economic impact done by COVID-19, global equity markets tanked 30% at an unprecedented pace.

During this period, these are the questions you should be asking:
  • What Are The Macroeconomic Factors That Will Directly Impact Your Portfolio?
  • What Are The Key Levels On S&P 500 Where You Can Buy Safely?
  • Is It A W-Shaped Or V-Shaped Recovery?
  • Where Will Be The Bottom And How To Find It?
  • What’s A Better Alternative Compared To Catching The Falling Knife So You Can Profit Safely?
  • What’s The Top 10 “MUST HAVE” Companies That Can Potentially Return Multi-Fold On Your Portfolio?
  • What’s The Key Price Levels To Buy On These “Beaten Down” Stocks To Supercharge Your Returns?
If you’ve asked others or yourself any of these questions, you’re at the right place.

This 32 page special report is specially curated for you to help you navigate this treacherous bear market filled with uncertainty, with the aim of enriching you through the research based on Fundamentals, Technicals & Macros.

Get this report for only $9.90.

button_buy-now-1


InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

apple   android

Thoughts On CK Hutchison Holdings 2019 Results (Guest Post)

Thoughts On CK Hutchison Holdings 2019 Results (Guest Post)

2019 was a pretty challenging year by all standards. Being listed in Hong Kong, investors were concern about the impact of Hong Kong Riots on results. Since they have enough assets in Europe, a region which many believe is declining, they were concern about how Brexit impacts them. The declining in Euro and GBP, trade war between the United States vs China and Europe and also in recent times, it is Covid-19 and the plunge in oil prices will impact them.

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with username known as Kyith and has 953 followers.

 

In terms of investments, CK Hutchison (0001.HK…) will probably go down as one of my poorer investments.

I got it at $85.90, $87.65, $81.25, $80.60, $82.90, $76.40, $67.90, $55.45. Based on cost, this is one of my largest position. It may go down as one of my biggest mistakes.

CK Hutchison or CKH for short is the listed flagship company of Li Kar Shing. In 2018, he step down from the company, handing the reins over to his eldest son Victor Li.

Victor Li manages CKH together with the best-paid employee in Hong Kong Canning Fok and Frank SIXT.

CKH this week together with their sister companies CKI, CKA, and Power Assets announced their full-year results.

In terms of key metrics this is how it lines up:

  1. Share price: HK$49.60
  2. Total outstanding shares: 3.8 billion
  3. Total market capitalisation: HK$188.5 billion
  4. Enterprise Value: HK$395.5 billion
  5. Net earnings attributable to shareholders: HK$39.9 billion (2018: HK$39 billion)
  6. Free cash flow: HK$35.7 billion (2018: HK$24.7 billion)
  7. Earnings Yield: 21%
  8. FCF Yield: 18.9%
  9. Dividend per Share: HK$3.17 (2018: HK$3.17)
  10. Prevailing dividend yield: 6.39%
  11. Dividend Payout Ratio: 30%
  12. Net Debt to Asset: 19.3%
  13. EV/EBITDA: 3.53 times
  14. Price / Equity (net of non-controlling interests): 0.40 times.

 

Why a Post on CKH Matters

On paper, you do not wish to hear me talk about one of possibly my big investment failures. But I thought the results are applicable in the context of what we are going through today.

CKH operations happens to be global:

  1. Ports in China, Hong Kong, Belgium, Germany, the Netherlands, UK, Spain, Poland, Sweden, Malaysia, Indonesia, South Korea, Thailand, Pakistan, Thailand, Australia, Egypt, Oman, UAE
  2. Retail Beauty & Health stores through AS Watson, ParknShop, Rossman, Drogas in Albania, Belgium, Czech, Germany, HK, Hungary, Indonesia, Ireland, Latvia, Macau, Malaysia, the Netherlands, Poland, Russia, Singapore, Taiwan, Thailand, UK, Vietnam
  3. Infrastructure through CKI in Australia, Canada, Germany, Hong Kong, Mainland China, The Netherlands, New Zealand, UK, Portugal.
  4. Energy in Canada through Husky Oil
  5. Telecommunications in the UK, Italy, Sweden, Denmark, Austria, Ireland, CKH Networks, Indonesia,

2019 is a pretty challenging year by all standards. Being listed in Hong Kong, investors were concern about the impact of Hong Kong Riots on results. Since they have enough assets in Europe, a region which many believe is declining, they were concern about how Brexit impacts them. The declining Euro and GBP is a concern as well. As they are tapped into so many areas of world trade, investors were concerned about how the trade war between the United States vs China and Europe will impact them.

In recent times, it is Covid-19 and the plunge in oil prices.

There is definitely no escape for CKH. They tried to pillage the world. Now the world will royally fxxk them.

In the results update, we can learn more about how well they navigate these challenging times and how Covid-19 and the oil crisis have been for them.

Here we go.

Read More Read More

Will STI recover from 2500 or if contagion happens, will the next floor for STI be 2200 or lower? (Guest Post)

Will STI recover from 2500 or if contagion happens, will the next floor for STI be 2200 or lower? (Guest Post)

Now, the STI reaching 2500 in the next 3 months is probable. The more pertinent question is: will STI recover from 2500 or if contagion happens, will the next floor for STI be 2200 or lower?

This post was originally posted here. The writer, Wen Hou Lam is a veteran community member and blogger on InvestingNote, with username known as padraig_lam and has 170 followers.

Image result for global debt crisis
Based on the current environment, contagion will happen in either or both of the 2 situations:
– global debt crisis (likelier of the 2)
– lack of USD outside the USA

Our abnormal and irrational optimism for all asset classes has been supported by Central Bank liquidity for the past decade, and not so much a fundamental improvement in microeconomics.

There is a cost to printing money to support liquidity: risk misallocation. We are now in the dying throes of this risk misallocation, with Central Banks warning for the past 2 years that they cannot continue to support this madness.

Those who have been shouting that “this time is different” are about to learn the timeless lesson of all market crashes, because if fools can make money, we all will soon be out of business.

Back to the topic of contagion, we then look for the likelihood of the above 2 events happening. For the past decade, all developed economies have been dragging along under a low-interest rate environment, accumulating rolled-over debt, year after year.

This inevitably encourages zombie corporations which survive on the margins of market share, fictitious product demand and low interest expense. Simply, the world has been converging towards a Japan-esque economy.

Now, the debt markets are feeling strain as future prospects dim, and existing cash is being locked up in safe havens further into the future. We can confirm that this contagion event will happen as the yield curve remains inverted at a steeper decline or a longer period. Today, the market is moving again towards such an inversion.

 

Image result for money fly

The next implication is that these zombie corporations cannot roll over their debt unless they are willing to pay a higher interest expense due to immediate debt illiquidity in markets. Add the demand shock from COVID, we may soon see the first Lehman moment in a decade.

How bad such a contagion event transpires depends on what Central Banks have left at their disposal, which I personally believe is none are sustainably effective (due to being so close to 0% rates). Of which fiscal intervention will happen as it did in 2008, which I personally believe will politically backfire as the common man has seen what “too big to fail” has cost for themselves. The chant of “taxpayers will not bailout” will be extremely loud this time round.

And as with all debt crises, the market will panic into a tailspin, like a dead bird flying mid-air and freefalling. This is the more likely event if contagion happens.

I will return soon with a second post about the second kind of contagion event: lack of USD outside the USA. This first post is sufficient for today’s mental consumption.”

Thanks for reading.

Once again, this article is a guest post and was originally posted on padraig_lams profile on InvestingNote. 

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

button_view-now


InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

apple   android

ARA HTrust – Most Oversold Stock in Singapore with 10% Estimated Dividend Yield (Guest Post)

ARA HTrust – Most Oversold Stock in Singapore with 10% Estimated Dividend Yield (Guest Post)

ARA HTrust comes out to be the most oversold among Singapore listed stocks yesterday with a RSI of 8.2. This is its most oversold level since listing. ARA HTrust has tumbled approximately 22% from an intraday high of US$0.900 to close at US$0.705 yesterday, which is the lowest close since IPO.

This post was originally posted here. The writer, Ernest Lim is a veteran community member and blogger on InvestingNote, with username known as el15 and 400 followers.

Yesterday evening, as I run my stock screening via Bloomberg, ARA HTrust comes out to be the most oversold among Singapore listed stocks yesterday with a RSI of 8.2. This is its most oversold level since listing. ARA HTrust has tumbled approximately 22% from an intraday high of US$0.900 to close at US$0.705 yesterday, which is the lowest close since IPO.

Why does it attract my attention? Read on for more.

 

A) Chart – Selling pressures may ease as oversold pressures escalate

Based on Chart 1 below, ARA HTrust is entrenched in a downtrend. All the exponential moving averages (“EMAs”) are trending lower with death cross formations. However, indicators such as RSI and MACD are near, or at all time oversold levels. For example, RSI closes at 8.2 yesterday, all time low since IPO. At 8.2, this is also extremely low on an absolute basis. Although there is no rule to stipulate that RSI cannot go below 8.2, suffice to say that, on the balance of probabilities, near term downside may be capped as oversold pressures build. In addition, ARA HTrust has been bouncing around US$0.700 and this support level looks good on both chart and absolute basis (typically stocks find support on a round number).

Near term supports: US$0.700 / 0.675 / 0.650

Near term resistances: US$0.735 / 0.745 – 0.750 / 0.775

Chart 1: ARA HTrust has fallen 22% since its record high US$0.900
https://s3-ap-southeast-1.amazonaws.com/investingnote-production-webbucket/attachments/6b3ca741312c1560d88c9727ff14446c19b6bd81.png?1583393464

Source: InvestingNote 5 Mar 2020

B) Analysts are positive with target prices ranging from US$0.95-1.25

Based on Figure 1 below, average analyst target is around $1.10. Analysts estimate that ARA HTrust may distribute US$0.070 – 0.074 / share as dividends in FY20F. If I conservatively use US$0.07 as the estimated dividends per share to be distributed in FY20F, this works out to an estimated dividend yield of around 9.9% given the closing price of US$0.705 yesterday. All in, total potential return amounts to around 66%!

Figure 1: Average analyst target $1.10; total potential return 66%!
https://s3-ap-southeast-1.amazonaws.com/investingnote-production-webbucket/attachments/8957fb0bf1ad21d14b0929d5745c42c3ed0cc0b6.gif?1583393465

Source: Bloomberg 5 Mar 20

C) Other noteworthy points

ARA HTrust has completed the acquisition of its three new Marriott acquisitions on 17 Jan 2020 and this is likely to contribute to their net property income. In addition, ARA HTrust has set up S$800m debt program in Jan 2020. According to KGI’s research report, they cited that ARA HTrust’s management intends to acquire more Marriott or Hilton hotels.

Risks

As with most companies, there are numerous risks that ARA HTrust faces. Just to cite a couple of risk factors (readers can refer to the analyst reports HERE for more risks that ARA HTrust faces)

a) Macro outlook has deteriorated

Given the supply headwinds, compounded by COVID-19 which is likely to have an impact on domestic and overseas travel, the macro outlook for ARA HTrust has deteriorated. It is noteworthy that since news of COVID-19 spreading in countries like South Korea broke out on the weekend of 22–23 Feb, ARA HTrust’s share price has slumped 18% from US$0.860 on 21 Feb to close US$0.705 on 4 Mar 2020. Although part of the decline can be attributed to its weaker than expected results, I think part of the decline may also be attributed to the spread and the fear of COVID-19 worsening in U.S. and overseas resulting in a drop in domestic and overseas travel. If this worsens further, it may have an adverse impact on current and future net property income and subsequently distributions.

b) Illiquidity is an issue

Average 30-day volume for ARA HTrust is merely 320K shares per day. This is an illiquid stock where it is not easy to enter or exit with a meaningful position. Furthermore, it may be subject to large price movements should there be sudden buying or selling interest.

c) Other risks include U.S. tax changes; forex risks etc

Other risks include U.S. tax changes and forex risks as ARA HTrust’s earnings and distributions are denominated in US$.

Conclusion

ARA HTrust captures my attention due to its extremely oversold nature, coupled with an attractive potential capital upside and good dividend yields especially in current low interest rate environment. However, it is noteworthy that its business faces certain headwinds. Illiquidity is also an issue.

Notwithstanding the above, it is noteworthy that I am neither familiar with ARA HTrust’s fundamentals, nor do I have direct access to management (as my main basis is more on its oversold nature). Readers who are interested in ARA HTrust should view ARA HTrust’s announcements on SGX or on their website. Furthermore, you can view the analyst reports HERE.

P.S: I have highlighted to my clients on ARA HTrust past two days where it is trading around US$0.700-0.705. I am vested in this stock for trading purpose.

Thanks for reading.

Once again, this article is a guest post and was originally posted on el15s profile on InvestingNote. 

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

button_view-now


InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

apple   android