So, when is your next estimated crisis then?

I do not want a crisis just yet ..... at least not this year or next ........... but if it does come, I am not the least afraid of losing my job.

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Added on May 17, 2011, 5:49 pmNobody knows. No use trying to time the market. Just be prepared at all times.

This post has been edited by Veda: May 17 2011, 05:49 PM

some would trade reit i.e. buy when mkt dips and sell after reaching their target, then repeat
some would collect reit when mkt dips and reinvest divvy when mkt dips again

just for fun reading only
large asteroid passing near earth on 08.11.11 http://neo.jpl.nasa.gov/news/news171.html
conspiracy theory linking to 11.11.11 some1's favourite numbers??
ooph OTT liao

KLSE suffer major setback on 1994, after super mega bull run.
1997 Asian financial crisis. (This could be once in our life-time), nothing to cheer about this one, lot of company went burst.
2001-2002 mini dip
2008 308 political Tsunami

No matter how, you don't wish it to happen.
You may see it as big opportunity when looking back.
But when you are dealing at that time, there were lot of uncertainty factors, which listed company can go burst or in trouble.

It is easy for anyone to look back and comment, but at actual time particular time, you never know the market or your specific stock can recover, or burst.
There are stocks that still not recover from 1994, 1997, even until now, and some already missing on the board.

I am very surprised to see some senior member actually don't know that we live our own life, and not other people's life. We live on our own expectation & not others'. One man's meat is another man's poison. One Junior Member's wish is another Senior Member's nightmare!

If we want to lose our job, it's our business & our life! If we want 30% yield, it's our expectation. So? What were they thinking?! They think they're so senior that they are highly respected & work for Welfare Department. There's a need to become busy-body & take care of every citizens' welfare. LOL!

Self-employed welfare department senior member also afraid of losing job Why? Not smart enough to play? Oh, i get it...Malaysia's share market is too tough. No worries, can always play Monopoly. Not smart enough? Ok, la...go play guli

I don't think it's a matter of wish or don't wish. If we live for 45 more years, we will no doubt experience at least a dozen more stock market crashes and 3-5 economic crises. Anyway, I've experienced bad, traumatic times in my life and a mere economic crisis will not shake me

I don't think I have 45 more years...
So less stock market crash scene for me may be.

Actually live through a crisis, is a valuable experience, which can be beneficiary for future.

What doesn't kill U, makes U stronger?
Sometimes, when actually GOING THROUGH it, U may wish it kills U OR U may have an out of body experience

This post has been edited by wongmunkeong: May 18 2011, 05:13 PM

wong, how do you calculate your "net profit/loss"?
& why do you put up that...that, apa nama that " " thing har? telinga ka?

Guys, that's why sometimes i bang my head on the keyboard; because i let that extraordinary moment to slip off
If you were me, how are you going to react?
You know that early teens yield are a rare occasion for reit & that opportunity wouldn't wait for you.
But on the other hand, you have no prior knowledge about reit.
So, do you give it a pass while you equip yourself with enough info?
Or just grab that opportunity while it's still available?

My advice is always the same.
Don't know/understand, do not invest.

How do you ensure the reit won't go burst during bad time or when the yield is teen number time?
You/we don't know.
There were well known reit in overseas went burst during the global crisis time, and never recover until now.

Opportunity is always there, you don't need to buy at the bottom to make money.
You may miss the opportunity to make 50%, 80%, 100% return, but if well equiped yourself, and invest wisely, getting a 10%, 15%, 20% return also very good.

While if invest wrongly, money burned resulted in little capital left, which eventually you lose many many more opportunity in the future as stock market is
no capital, no talk.

Ooo...so my thumb-sucking activity is correct, eh?
Even almost after 3 years since the crisis, i'm still in beginner level
But when the next crisis come along, i know i'm more well-equipped than before
Thanks, cherroy...for advice & infos

HJebat, my calc of per transaction's net profit / loss, even if still held (thus pre-calculated), assumes:

Current Closing Price (or selling price if i just sold)
+ Dividends Received

Less Costs:
Purchase cost
Selling Cost (pre-calculated)

and divided into 364.25 days pa of time between purchase and selling to get XX%pa profit/loss

The ears? "" - i like ears, nice to hold, especially beautiful women's
Seriously though, i put "" as it's my personal definition of net profit / loss, even if still held. Some people tracks net profit / loss held without including the cost IF sold now. I'm more pessimistic that way

I can't get the bolded part...

Current closing price + Dividends : RM2.25
Less costs : RM1.55
Bought in 2008 & assume that i sell in 2011.
How do i do the math when i reach the bolded part?

To be clearer, i'll use the example below. Your data needs to be more specific in terms of Dividend amount, date bought (2008 isn't a date, it's a year), date sold

Eg.
Bought: 1/1/2008
Bought at $1
Units: 3,000

Dividends: $0.10 single tier

Sold: 30/06/2009
Sold at $1.20
Units: 3,000

a. Cost of Purchase = ($1 * 3,000) +brokerage +stamp duty
I'll assume here that Cost of Purchase = $3,043

b. BEP = Cost of purchase - Net Dividend received, say $3,043 - $300 = $2,743

c. Net Profit = Sales - (brokerage + stamp duty) - BEP,
say $3,600 -$21 -$2,743 = $836


Thus the pa% returns calculation based on the above (in Excel formula) would be:
((BEP +Net Profit) / BEP) ^(1 / (Date Sold -Date Purchased) /364.25) -1

where: (BEP +Net Profit) / BEP = simple Profit % (er.. minus 1 please from here)
where: (Date Sold -Date Purchased) = days held. Dividing this by 364.25 days will get U years
where: ^(1 / blah blah). The basic formula is derived from S = P * (1+%)^n

Anyone yet? heheh - it looks simple in Excel. Any maths genius can check the above? I just translated it from my Excel spreadsheet from interpretation of the cells' data - did my spreadsheet (finalized) several years ago

This post has been edited by wongmunkeong: May 19 2011, 01:07 PM

I have few questions again. Just take AXREIT for example:

1.
What does distribution of income mean? Distribution of Dividend?

2. After taken account of management fee, dividend rate of each quarter for AXREIT is 7-8%? Or 7-8% each year?

3. According to what I know, any REIT would not distribute the same dividend every year, right? So what is the minimum dividend rate for AXREIT?

To answer your questions:

1) For REITs, the correct term is distribution per unit (DPU) rather than dividend. They are actually the same, in terms of you getting the money in the end!

Take a look at my guide on "REITs and dividend" : http://forum.lowyat.net/topic/1039913
- Post no #5

2) Yield for REITs is usually quoted as % per year.

3) REITs usually distribute 90% or more of their profits. As such, the amount of DPU would depend on their profits and there is usually no fixed minimum dividend rate for any REITs. However, if that particular REITs has a stable income, you more or less would know how much they will get each year.

This post has been edited by kmarc: May 21 2011, 11:19 AM

Thanks for your reply.

I thought REIT distribute dividend 3 or 4 times a year? Or is it I mistaken?

Nope. Some REITs give quarterly DPU, some give 6-monthly. Take a look here: http://mreit.reitdata.com/

In the "Period" column, you can see either 1H, 2H, Q1, Q4 etc. 1H means first half of the year, meaning that the particular REIT distributes every 6-months. Q4 means fourth quarter, meaning that that particular REIT distributes quarterly.

In that case, would every REIT give DPU on a fix momentum basis? Meaning if REIT A gives once every 6 months, forever gives DPU once every 6 months?

Yes.. if not they will either give bonus shares (reinvestment plan) or else they are in trouble...oh...they meaning us too!! lol