Sell @ $0.445. Gave up waiting for $0.45 (just missed it yesterday and today, the Q is close to 1000) and decided not to be too greedy as the risk is high due to their high gearing. 😀
Cambridge @ $0.415
Sell @ $0.415. Contra off as I have some more. Buyer ’70’ – CLSA, looks like they are the one buying in 100-200 lots. Also got seller of 100-200 lots aro’. 😀
Comments
My estimate of their recent foray into MI-REIT will result in no extra realised gains but will have some unrealised losses, assuming they don’t sell all their shares,
Div Collected = (26Mil x 1.939ct) + (13.31Mil x 0.95ct) = $624,695
Realised Losses (Assume buy at $0.40 and sell at $0.35) = 12.69Mil x ($0.40 – $0.35) = $635,500
They sold on 24-Nov where the low was $0.32, so potentially, the losses will be higher. The Nett effect is there’ll be no increase / reduction in DPU payout for the next Q.
On why they sold, it could be to raise $$ for the rights issue (altho’ they have enough $$ raised fm their recent Private Placement, I don’t think they want to be too heavily exposed to MI-REIT, esp. since their stake is not large enough for them to particaipate in the mgmt). My estimate,
Amt fm sale = 12.69Mil x $0.35 = $4,441,500
Amt Required for Rights = 13.31Mil x $0.159 x 2 = $4,232,580
The above estimates is based on a sell price of $0.35 but it could be lower. Anyway, it does explain their recent actions if I’m right. 😉
Cambridge @ $0.405
Cambridge @ $0.41
Buy @ $0.41. Take a risk, Yield = 13.1%. Whatever the outcome of today’s MI-REIT vote, their stake will still be yield accretive (I think better than if they’d make new acquisitions or assets enhancements). Seller ’21’ – Kim Eng. 😀
10:58:42 0.405 405,000 Sell Down
10:48:28 0.410 20,000 Buy Up
10:47:42 0.410 781,000 Sell Down
10:40:39 0.415 3,000 Buy Up
10:36:39 0.415 1,000 Buy Up
10:35:54 0.415 5,000 Buy Up
10:27:07 0.415 25,000 Buy Up
10:21:01 0.410 30,000 Sell Down
10:19:18 0.410 10,000 Sell Down
10:17:40 0.415 100,000 Buy Up
10:15:55 0.415 100,000 Buy Up
10:14:01 0.410 37,000 Buy Up
10:13:27 0.410 25,000 Buy Up
10:12:50 0.410 13,000 Sell Down
10:12:29 0.410 12,000 Buy Up
10:12:19 0.410 10,000 Buy Up
10:11:27 0.410 15,000 Buy Up
10:10:40 0.410 475,000 Sell Down
May be Mr Yap Chin Kok (YCH) who’d also sold down his stake last week.
Additional Comments
Their 25Mil Units stake in MI-REIT is now in limbo. When they purchased at $0.40, Yield = 19.39%. But, if the MI-REIT recap vote goes through today, Cambridge will have to come up with another $6.5Mil (less div 1.939ct + 0.95ct) for 50Mil rights units, which’ll also dilute the yield to 10%+ (lower than Cambridge yield). It’s still yield accretive though as these are using $$ raised from an earlier private placement.
IMO, the biggest blunder made by CITM CEO was in the press interview where he ruled out a merger (I think a merger would have been the best outcome), which by law, rule out any merger proposal for another 6 mths. He was left with no choice but to propose CITM running both REITs, which was further ruled out by MAS. This allowed MI-REIT to go on the offensive.
At the end of the day, the inexperience of a young (38?) CITM CEO shows, losing (??) out badly to the shrewdness and experience of George Wang (AIMS boss who has a 100% stake in MI-REIT manager and who made his fortune in Australia).
BUT, the vote may still not go through as they need a simple majority (50%) for ALL the resolutions as CITM may have successfully highlighted to shareholders on the value destruction of the large private placement (huge discount at $0.28) and the bad decision in the purchase of AMP’s assets (not at a good discount to market valuations).
Cambridge @ $0.46
Buy @ $0.46. Taking some risk to buy as Gearing @ 43.8% is one of the highest for SREITs ie. high chance of rights issue and a 1-for-1 will dilute the yield to 6%. Yield @ 11.728% but AREIT (another Industrial REIT) which released their results yesterday showed slightly lower DPU (q-on-q) likely due to lower occupancy and declining rental rates. Seller ’83’ – CitiGrp. 😀
Big players around earlier,
09:26:54 0.460 300,000 Sell Down
09:24:56 0.460 180,000 Buy Up
09:24:33 0.460 20,000 Buy Up
09:24:23 0.460 20,000 Buy Up
09:23:46 0.460 30,000 Sell Down
09:23:17 0.460 10,000 Buy Up
09:23:17 0.460 1,000,000 Buy Up
09:08:57 0.460 20,000 Buy Up
09:07:02 0.460 20,000 Buy Up
09:06:18 0.460 20,000 Buy Up
09:05:03 0.460 6,000 Buy Up
09:00:53 0.460 30,000 Buy Up
08:59:01 0.460 275,000 Sell Down