Got, just no transaction being done.

Quite norm for those low liquidity and hardly known by retailers stocks.

Axreit is the most aggressive reit out there, keep on acquire newer properties into their portfolio. In Reit, size is an important issue to attract investors especially foreigners. This issue (size & liquidity is the main disadvantage of Atrium, that's why its (atrium) price can drop so much to have highest yield as it is all depended on retailers interest. Fund managers can't interest in it even though they wish to.

Just having 4-5 reit counters are not considered too much, diversify a bit.

PS: Axis reit code name is Axreit, while there is another second board counter code name Axis which is not reit and not related. Just to avoid some confusion.

Another point, bare in mind, buying reit is not as same as normal stocks, don't expect to earn like normal stocks did as Reit price generally hardly move much. Its price will only move if properties market is booming or on the rise.

The main target is getting its yield, other than (price appreciation) that is considered as extra bonus.

This post has been edited by cherroy: Feb 14 2008, 03:26 PM

Aiyo, I miss the boat. Didn't queue, as didn't think can be done.
The sellers are depressed, throw disregarding the price as long as got the buyers.

At 1.70, it is almost at par its NTA (1.65) already and with 13.+ to 14 cents EPS is expected for the full year then it is about 7.7% yield, net yield about 6.5%.

This post has been edited by cherroy: Feb 14 2008, 05:19 PM

1.65, definitely would add some.

The 1.70 done is jump down from 1.74 straight away to 1.70, so it is just no buyer queue, as selling was done with several hundred lots only in total (x1000), not that much for market standard. If buyers emerge then price will go back up to 1.73-1.75 for tomorrow. Unless the sellers are aggressive as today.
Buyers generally not in hurry to buy one especially for some want to invest in Reit, if I know sellers are eager to sell, I also put it low low.

---

Added on February 14, 2008, 9:27 pmCount me in.

This post has been edited by cherroy: Feb 14 2008, 09:27 PM

I am more into getting its yield only, anything on price appreciation personally considers as bonus.

But will sell also, if its price is way beyond its NTA or yield become no attractive anymore, so FD interest rate can be an important comparison figure.

Reit counters are like that, once they don't trade aka buyers not will to buy at high side or sellers won't keen to sell then no trade at all.
Once either side want to buy or sell then it will move the price up or down as liquidity are not that high for all the Reit counters may be except Stareit. From the movement of trade of Axreit, somebody eager to sell or liquidate.

Reits price (all over the world) will under some pressure for near term as global slowdown might affect properties sector not to mention the subprime mess in US doesn't affect people view on real estate. So don't except any dramatic turn around to upside for Reit for near term. Having said that, the lower the reit price, the higher the yield they become which make them attractive for long term. But do assess the portfolio properties in the Reit as whether they will be afffected by the economic slowdown.

But if one view to buy low and sell high for short term gain like normal stocks, then Reit is not a place to be.


Yes, whenever people qoute on yield, it is p.a. But most give their distribution semi-annually. Atrium gives every Q so far.

This post has been edited by cherroy: Feb 15 2008, 11:36 AM

Will queue Axreit at 1.68 <-- nice number mah especially new year time

Still got a bout 2 hours of trading, long way to go.
Today cannot get, then wait for Monday loh, Monday cannot get then Tuesday or another week.

Why need to rush then. Market or specifically reit won't shoot up in near term.

This post has been edited by cherroy: Feb 15 2008, 03:17 PM

See, 1.68 done, close at 1.67. Too bad my queue 1.67 can't get the matching, at the back of the queue.

I don't know as it depends on individual preferences. But most of the time, I opt to have some differences like 5 cents before add on again, something like 1.68 bought then 1.60-1.63 would be my next target.
But remember to keep on touch on the company financial situation, if nothing goes wrong, then it is ok to add on, but if financial result shows deteoriation, the plan has to be changed.

Axreit is projected to have around 14-15 cents DPU, so roughly gross yield 8.9%. net yield 7.6%. <-- see the detrimental effect on the 15% witholding tax. You need to take the net yield as benchmark, gross yield carry no real meaning one.

Last year before budget, when reit industry company are lobbying the gov to reduce the witholding tax, at that time, all reit price went up, axis to 2.10, Stareit to 1.05. But after budget disappointed everyone with no change, reit price continue to slide down until now.

This post has been edited by cherroy: Feb 15 2008, 05:37 PM

Personally, I look for the yield only as alternative option of FD.

Also, even though most reit price is falling but not that much, (I got Atrium at about 0.96 average, Stareit at 0.90, Axreit average around 1.75-1.85), which those already getting some distribution from it.

Yield is 'locked down' when you purchased, the price movement won't affect the yield. Just like I had bought Atrium at 0.96 which is about 7.8% net yield (after deduct the 15% witholding tax). As long as Atrium manage to maintain its DPU at 8.8 cents pa, then daily price movement doesn't affect my yield or decision in it. Only if Atrium DPU drop, then I would concern about it or selling it. That's mean I can expect 7.8% each year from it from my invested 0.96.

Instead the price goes down which only makes the yield even higher and more attractive for future purchase.

But remember to watch the individual company issue closely especially their earning result. If nothing goes wrong, yield play is ok, but if earning result shows some deteoriation then need to revise the strategy again, and decide whether to hold, sell or buy.

I do see some more downside for reit although yield is attractive, mainly due to real estate mess in overseas as well as potential economic slowdown which does hurt Reit price in general which follow overall market trend unless gov intends to reduce or abolish the witholding tax which is a great news for reit.

This post has been edited by cherroy: Feb 16 2008, 03:55 PM

Yup, this is the main issue of unpopularity of Reit in Malaysia. Singapore is much lesser, if not mistaken, Singapore domestic investors are exempted from any tax, while foreigners at 10%

This post has been edited by cherroy: Feb 16 2008, 06:03 PM

Yup, it is fair to raise a question like that.
For long term investment target, personally mostly doesn't opt to set the TP precisely both cut loss or profit take.
Any decision in future is made based on the fundamental changing issues. If it is expensive to hold or not worth to hold anymore or fundamental issues of company deteoriate aka profit drop (with trend or prospect no good) then will sell, disregard profit or loss.
On the other hand, if fundamental is good and just the price goes down, then will buy.

Neo,
can contra the Axreit we bought last Friday, earn few hundreds buck, want to take the profit?

If both at same yield, I, personally would prefer Axreit, as it has more liquidity in the market and more diversified.

This post has been edited by cherroy: Feb 18 2008, 03:46 PM

Axis reit DPU is expected to rise after some properties acquisition in future.

The major downside for Atrium is its liquidity, that's the major reason why it drop from 1.00 to 0.92 so quickly, which actually not much transaction done in between. In this kind of stock, if one holds few hundred lots (I mean x 1000) of it, then one would find difficult to dispose at a short time without depressing the market price. So hold few ten lots to hundred may be, but more than that, price surely depress a bit just like current Atrium case.

But having said that, if someone really want to push it or got high interest in it, low liquidity stock is much easier to go up. So there are pros and cons.

So it is about individual preference.

Judge your own then.

This post has been edited by cherroy: Feb 18 2008, 04:01 PM

Queueing for the second round.

Never mind, may be tomorrow or next week or next month. Already got some in hand, right?

Then I queue at 1.63 later.

This post has been edited by cherroy: Mar 5 2008, 03:34 PM