Monday, June 22, 2015

Recent Action - FraserCenterPoint Trust (FCT) (3)

Today, I made a divestment for my last batch of 10,000 shares of FCT at a price of $2.09.




The last two divestment I made in batches was in the previous couple of months at the price of $2.15 and $2.06 respectively. You can view my rationale for divesting here:

Recent Action - FraserCenterPoint Trust (FCT) (2)

Recent Action - FraserCenterpoint Trust (FCT)

The investment thesis rationale for divesting remains the same as previously discussed. I think given the impending increase in interest rate and with the yield hovering at around 5.4%, the premium return yield in excess of the risk free rate continues to linger low, perhaps not having the required margin of safety that suits my comfortability.

Some may ask why didn't I divest all then when the share price was at $2.15. The only reason I could think of is I was awaiting for further development for both the economy in general as well as the Reits. Now with more information, I think I am comfortable enough to sell the holdings, diverting the proceeds to the warchest which has now grown to around 34% of the overall portfolio.

I'll be patiently waiting for a much better risk adjusted reward returns. Given the economy we are at right now, I am sure there are plenty of meats to choose from in a short while more.


"It takes character to sit there with all that cash and do nothing. I didn’t get to where I am by going after mediocre opportunities" — Charlie Munger


12 comments:

  1. Hi B,

    The recent news of interest rates hike tempted me to sell my REITs.

    The way I prevent myself to sell those REITs that I told myself to keep long term during the time of purchase, is by participating in DRP. With DRP, I have all the odd lots that make it so difficult to sell....hahaha

    Sounds stupid right!

    Anyway I always admire your timing of the market! From SCI, Silverlake, FCT (this time), I think you are sharp!

    ReplyDelete
    Replies
    1. Hi Rolf

      That's actually a good way to do things about it. I've too considered DRIP but because of the odd lots arrangement, it makes me rather confused and I think because of that you did not sell the stocks as a result.

      I think it's still too early to say, silverlake is badly beaten up these days, but if it goes down to attractive price further, I'll be the first to pop in and accumulate :)

      Delete
  2. hi, how about fcot in ur portfolio? plan to sell also?

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    Replies
    1. Hi Richard

      I have no plans to divest FCOT at the moment, for now :)

      Delete
    2. Ok. So u are selective. Not dumping all reits. :).
      Btw, cmpacific trades halt today. My guess is buying new roads or rights issue/placement, or both. Watch for the news. I also vested in this counter. Althogh not as much as u do.:)

      Delete
    3. They just undertake quite a sum of loan facility recently, but I guess it'll be a bigger acquisition than jiurui which I also think will be funded partly debt and partly placement.

      Delete
  3. 34% cash is quite a lot, what if the market moves upwards sharply?

    ReplyDelete
    Replies
    1. Hi Felix

      If the market moves up sharply, the majority of my equity holdings will enjoy the upside. It's a win win situation for me.

      What about you? Are you still holding on to any cash?

      Delete
    2. when STI was 3500 I was around 90% vest, then it fell to around 3300 and I deployed my remaining cash to add more STE, UOB, M1 and CCT

      currently 100% vest, holding 7 stocks

      Cheers

      Delete
  4. I share similar views, trimming the portfolio every once in a while, whilst keeping most of it intact

    ReplyDelete

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