alaqar volume very big for today ...... unload by big player i guess

but price drop only.. 3 Cents

This post has been edited by wongmunkeong: Aug 4 2011, 05:16 PM

is alaqar worth investing? been seeing research papers by investment banks and not many of them recommend alaqar. most will recommend axreit, arreit, sunreit and cmmt.

what's your say?

I WANT to buy in for my own reasonings (asset allocation, target type of REITs, DY%, D/E, ROTA, etc.) , but not at current market price

Analysts? if they be so changgih (all of them lar, some are dang good), they'll be filthy rich liao + they'll be keeping quiet about their personal research Want competition for them stocks meh.

so what's the price ur targeting? any idea how to find out a good price for REIT? i dont think the normal ratios for stock evaluation is suitable for REIT, like ROE, DE ratio etc.

what sort of asset allocation for REIT are u talking about? is it about diversification on different kind of REIT, eg retail REIT, commercial REIT, industrial REIT etc?

Someone mentioned REIT is more about dividend & not buy & sell like stocks. So if you want for a good price to buy, maybe you can wait a long time

"Good" price only happen if REIT cannot get lease or big funds exiting or some other negative reason. However, at that time you also be breaking into cold sweat deciding on whether you want to click on BUY button.

Sometimes analyst report are more opinion than facts. So go through the report & filter what you need then decide.

Price targeting? Bro, I'm no analyst, thus dont want to publish my targets lar. No brownie points

U can use whatever evaluation U like to find your target price - i chose mine for my own reasoning
Valuation and "of value" is a very personal thing - thus, for example to me, i wouldn't buy any REITs if its expected GROSS DY% is less than 7% UNLESS it's historical growth factor is great AND its D/E aint too leveraged yet. Another chap may accept less / more than gross DY7% based on other factors.

Normal ratios for stock evaluation isn't suitable?
Very simple example to my simple logic (i'm a simple fler)
eg.1 - can any business be solid if it's D/E is much higher (comparatively among its peers)? a stumble here, a hiccup there and kabloey.
eg. 2 - can any biz be worth your time if its ROE (or in the case of REITs, ROTA) is like 4% to 5% only, for the past few years?
Can ar? Ok - go ahead and buy. I'd just chose another lor, that's the beauty of being an investor and not tied to a company. Different strokes for different folks, thank gawd - else there'll be too dang much competition for our "valued stuff"

IMHO, the basics will always be "the basics". I still need them, then add spices (PEG, ROE/ROTA, etc.) & garnishing (minimum gross DY%, etc.) , depending on what's my aim of the investment (or trade if not REITs).

Just a thought - ever worked in the engineering or IT industry before? Most of the "new stuff" have the same basics and these are supposedly cutting-edge tech

This post has been edited by wongmunkeong: Aug 4 2011, 06:25 PM

i see.. just deducing from my observations.

I'm willing to wait - bad stuff sure to happen within a 5 year period cycle. Hheheh - then it's either small or big sale! Woohoo!

This post has been edited by wongmunkeong: Aug 4 2011, 06:25 PM

when we mention a good price in this thread, I believe it is only when something drifts near to historical supports, or drifts below average price. as you might be aware, reits here trend according to current and perceived future EPS/DPU growth. Have a look at Axreit, Arreit, and compare with Atrium. you'll understand, so when it misprices itself then there might be an arbitrage opportunity.

the only 2 outliers in the MREIT market, from my POV is Sunreit & CMMT, because these two got a lot of retailer marketing & interest, hence a higher premium, higher capital gain, but lower dividend yield.

of course, value is very subjective. but if you want REITs cheap, you must be praying for an earthquake or massive floods or the last one, a simultaneous crash in the 3 markets, industrial, retail, office props giving a massive devaluation in rental prices... touch wood

This post has been edited by teehk_tee: Aug 4 2011, 06:27 PM

Those with $ammo$ stored + dry powder will DEFINITELY touch and bang wood - for it to happen!

Not all SG REITs behave like that. Some REIts have consistent dividends, and some even have growing ones. Take a look at the following REITs :-

1) First REIT

2) Parkway Life REIT

Good payouts.

The thing about SG REITs are the higher transparency, and zero tax on individual investors. Now, the buying can be done throughout the whole day, no lunch breaks.

Think about it.

Of course, I have tried this too, but the problems start when that 'Shopping Day' never comes, and I start to feel that I am losing out on opportunity cost, and missing out on the dividends that I could have earned, on the coupons that I could picked-up, or the premiums I cold have collected... or when it comes to properties, on the rentals I could have collected from my tenants had I taken the plunge, even if at a premium price.

So long as we are able to hold, and the investment is sound and not toxic, I stand on the belief that anytime is a good time to buy.

One should be able to invest in any market conditions.

Agreed - it depends on which vehicles (bonds, stocks exREITs, REITs, properties, metals, MM) and for what (income, cap gains via value or growth, trade, etc.). Still gotta "wait" for the right triggers / personal entry rules mar right? Touch wood, touch wood

This post has been edited by wongmunkeong: Aug 4 2011, 08:39 PM

I do not understand your equation. You mention that YD 8%. Then calculate to get net YD %?

If dividend distributed is in cent or percentage?I confuse ade...

3 cents is quite a lots for me already hardly will drop that much in one day !!

ops i mean varies as in diff sg reits diff div payout, but u r right, 3-5% for most of it

---

Added on August 5, 2011, 12:22 amOPs...sorry i meant varies as in diff sgreits diff div payout, so u r right.
Ooo..parkway life?? okok...shall take a look! Thanks!

This post has been edited by mIssfROGY: Aug 5 2011, 12:22 AM

Certainoy, in other words, need to be fully-satisfied that it is a viable entry point to go for, but what I am trying to say is not to take too long.

Assuming that most people say DY%, they mean gross Dividend Yield:

gross DY% = dividend yield based on the price paid BEFORE tax

To get the "$ in pocket" version of that, please remove 10% tax to get net DY%


Hm.. i thought i did state gross DY% and net DY% in my earlier posting. Waitaminit.. i did! Bro - English lar, read lar. Spoon feed meh

earlier's posting:
DY% mentioned is gross. Thus, if say TWRREIT is supposedly paying 8%DY at current price, then U better calculate it as
8%*(100%-10%tax on dividend distributed) to get a closer net DY%.

Cost of purchase is about 0.55% (one way), assuming U are buying at least $3K worth, when buying stocks (investing in REITs are investing in their common stocks). Do the maths

This post has been edited by wongmunkeong: Aug 5 2011, 07:06 AM

Lol...Sry bro...But I did read that. What I mean here is I do not understand your equation.

Let's say TWRREIT stock price is RM 1.09.

DY = RM 1.09 * 8% = RM 0.0872

If I got 3k amount of stock, RM 3k/RM1.09 = around 2.7k unit.

The dividend I got is RM 0.0872 * 2.7 k = RM 235.44 each year

This is how I calculate without deduct anything yet. Is it correct?

This post has been edited by goo5257: Aug 5 2011, 08:27 AM