Good day guys,

is still a newbie and just recently I started in this trading business.

One question. Since Hektar have already announced the dividend at .024 sen per unit, entitlement before 04.06.09, why didn't I see buyers lining up to buy them?
I mean, if I buy 10,000 units now and sell them off on 10.06.09, I will still get that dividend cheque coming to me, yes?

Thanks y'all.

you can sell anytime after the ex date (2/6).

Yea u will get the cheque, but at the same time the price of the shares will be down 0.024. You're back to square one. Unless u plan to hold it, theres not much point of buying now (after the price has gone due to div anouncement), collect the cheque and sell it later (price drops after ex-div).. It really depends on your strategy.

Aiseh, ahead of me, today buying at 0.84 to join in.

Mine all matched at 0.84

How come you so slow leh? Me fast fast today as I'm on emergency leave.... Maybe I should take more leave.....

This post has been edited by kmarc: May 20 2009, 12:35 PM

Reits... no rush to buy ler, slow slow accumulate. i have get ready more cash to "sin" at 80 sens. cherroy you don't "chiao" with me okay!!

Owh... like that one ka? I thought have to rush like normal shares....

---

Added on May 20, 2009, 3:26 pmBuy small small nia, sellers at least having a few 10K lot of sell, everyday they sell a bit and a bit.
The trend/transaction pattern is similar to Axreit when plunged from 1.50 to 1.00.

Ok don't chiao with you, queue at 0.805.

Everday also same price, why rush?

This post has been edited by cherroy: May 20 2009, 03:27 PM

Plenty of QCAP at 0.84, take it easy. Lately most of the REITs falling slowly. I think those with lots of REITs exposure starting to sell some and overweight on goreng stock in anticipation of a bull run. This theory boleh pakai kah?

tak boleh pakai.

you ask cherroy to sell all his reits and buy goreng shares to goreng, see he wants or not

cherroy is diff ma. Im referring to the average joes and tom,d***,harry who will do that gua. They follow the smell of $$.

Tak boleh pakai, no offence.

Those play in goreng stock won't touch reit or those boring counter one, they never bother whether the Qcap is at 0.10 or 1.00. They just want some "action" stock that can shoot up tomorrow and fast within days.

Those invested in Reits won't bother how goreng stocks performance, as the intention to have reits is once invested, then waiting for distribution every Q or semi-Q, just like FD. Any price appreciation is a bonus, which you cannot hope for much.

Reits price tumbled because anticipation or poorer economy condition which tenants are hardly to get or renew which could affect its ability to pay DPU, while properties price might under some pressure.

When someone holds large amount like fund managers want to get rid of it, then you will see some selling pressure which depressing the price until they managed to clear the stock. (which you see Axreit bounced up from 1.00 to now) mainly due to liquidity is low across.

There are a lot of dividend funds, insurance funds are investing in Reits, so once they decide to sell, so market price always being depressed.

---

Added on May 20, 2009, 4:09 pmBasically reits is moving on its own which based on their fundamental and prospect.

This post has been edited by cherroy: May 20 2009, 04:09 PM

What about those investors who are waiting out the downturn? Since they have $$ and reits are liquid, give high yield (more than FD), does it make sense for them to overweight on reits in the short-medium term? basically they just want to park their $$ somewhere safer, with decent yield.

Logically, if overall market goes down so does reits price.

As stock market normally plunged because of economy recession, if economy recession, reits will have problem of getting tenants as well as softer property market.

yeah true. i guess msia reits didnt behave like US, aussie, sg reits. msia reits did show some sign of struggle (nestle house - axreit, ceva - atrium) but overall they seem pretty tankish. They even had +ve rental revisions!

QCAP 0.835.. down somemore and ill going in

I guess we can applaud our Malaysian system at times like this. Those economies with property bubbles are facing the music now for their greed (namely US, Europe, Australia). That is why our REITs still stable. On why our REITs plunged when property bubbles burst and global recession, is because of fear. It's common for people to fear. Just like yesterday when AXREIT dropped, people scatter. Fearless people who bought at 1.35 yesterday can already earn 5sen today

So we can easily predict REITs, that is why I am sticking with REITs. I am not going to get involved with normal stocks until I have extra cash

P.S. I even sent an article to Personal Money "Question of the Month" section on REITs, due to release for next month's issue. I hope I can be one of the featured article

On QCAPITA, I think some of you might want to rethink your decisions. A rough study on the annual report tells me that they are holding to some low-yielding properties (as low as 1% pa). So, I don't really have faith in its management as their cash is not utilized efficiently. I will do a more thorough study on its property yields and post it here later.

This post has been edited by Jordy: May 20 2009, 08:35 PM

Alamak! Really ka?

Please give any info if you dig out anything. I just bought some today!

Please share with us the analysis later on.
Many thanks

Done a thorough analysis on some of its properties today (couldn't do more because the management did not disclose the income on other 5 properties). Here are the results:



By looking at the results, we can see 4 properties out of 5 analyzed were receiving low yields. These 5 properties have an average yield of only 7.46% (below average yield for REITs).

Let us take a look at the average yield of the other 5 properties:

Net total annual income (a): RM 12,706,037
Total purchase price (b): RM 319,000,000
Average yield (a / b * 100%): 3.98%

Well, this simply means that the average yield on all 10 properties is (7.46% + 3.98% / 2) = 5.72% (still well below average for REITs).

Anyhow, this yield is just an estimate by using some calculated assumptions based on FY2008's figures. The yield should not increase unless there are positive reversions done this year. Otherwise, we will be seeing another year of low yield.

I am only wondering how did they manage to pay its investors a gross yield of 8.16% (net yield 7.35%) for FY2008 while it is earning a net yield of only 5.72%. Still, if they were able to maintain 7.51 cents distribution for FY2009, those who bought at 0.84 would only be yielding a net of 8.05%.

If any of you who have also conducted a study on QCAPITA and found a mistake in my analysis, please do correct me. I am just hoping everybody would be informed of the actual situation before someone really gets stuck with QCAPITA.

P.S. Just to add onto my comments, another reason I do not have faith in its management is due to the fact that they are not being fully transparent in their report. A good management team would disclose the full breakdown of their income in its annual report. This must be taken into consideration before choosing the stocks to buy.

This post has been edited by Jordy: May 21 2009, 04:52 PM

I have no problem with yield around 7-8% if those tenants are going to stay long and paid up on times.

Compared to yield of 10% on Atrium warehouse, while potential lose tenants in between. I would take the 7% for long term play.

Anyway, me invested little nia.