Sell @ $4.20
Take profit. Decided not to wait for the FY14 (Oct) Results to free up more cash in case I need it to buy more OCBC Rights + Exercise as prices looked weak…. 😀
King Wan @ $0.335
OCBC Rights @ $1.9875
Buy @ $2.01, $1.965
After the reset yesteday, I have the opportunity to start afresh today. There was a sharp drop when mkt opened and after I bought @ $2.01, it gradually weakened for the rest of the day. This time round, I have more free cash and will be able to sleep better… plus, I can do one more buy on further declines… 😀
F&N @ $3.0371
Sell @ $3.03, $3.04
A good price jump at open with continued buying interest, hitting an intrday high and closing at $3.09. Perhaps, Fung Choi being halted before mkt opened + the previous article in the news of F&N in plans to dispose of their substantial stake contributed to the demand…. But, F&N had issued a clarification yesterday and had not been halted with Fung Choi… something else brewing??
Anyway, sold my entire stake as I couldn't control my temptation to profit take, plus I happen to need Free Cash now for other alternatives… 😀
FCOT @ $1.39
Buy @ $1.39
The same pattern as yesteday. For most of the day, it was trading at a higher price but sellers appeared towards 5pm and during matching. Range $1.39 to $1.41 ; Vol = 1,119,000
Jump-Q to get some. Have hit my minimum budget Qty but can buy more at current prices. Alternatively, can also trade as need only 2 bids… 😀
Saizen @ $0.935
Sell @ $0.935
Forgot to sell yesterday (1st day xd for 3.2ct DPU) when it opened and matched at $0.94. Sold at a loss but will have a small profit after DPU payout.
I managed to clear all the ones I'd bought in anticipation of a good recommendation (eg. Pay out Special DPU due to high cash or Sell all assets and liquidate as NAV Discount 20%+) but was disappointed with it maintaining status quo. Am left with the original ones but may also sell those at current prices if there are buy volume. Reasons,
- Unable to understand their financials. Saizen uses Loan Amortization (they explained that it helps to lower their loan interest expenses – I can understand this) but uses Cash Reserves to offset that in order to maintain a larger DPU payout. They further mentioned that this DPU component (close to 50%) may not be sustainable as it's dependent on their Free Cash balance. What I don't understand is why Saizen is doing a Loan Amortization as I don't see it being done in other REITs, including those with Japan assets eg. CRT (in case it's a Japanese accounting requirement).
- Abenomics is taking a longer time to positively impact Residential assets and more so, in outlying areas (Tokyo commercial properties are already enjoying good increase in valuations)
- JPY continued to weaken recently, possibly to help make their Exports more competitive. But, this is bad for Saizen DPU
- Next DPU payout is 6mths later. Money could be better deployed elsewhere.
However, in the event Saizen share price slides towards 90ct, I may change my strategy… 😀
OCBC Rights @ $2.00
Buy @ $2
Quite scary to see it drop so much after I'd preiously bought at $2.15. After buying, almost got a heart attack to see it drop to a low of $1.935. Unfortunately, I don't have enough free cash (need to also set aside $7.65 /share to exercise) to buy more to average down…. 😀
Sell @ $2.13
Prices started to recover when it was closer to 5pm. I calculated my average breakeven to be $2.08 (for the two buys) and put in a sell order during 5pm matching. It was matched at $2.13. With that, I have done a reset ie. no more OCBC Rights. Can start afresh again tomorrow… 😀
F&N @ $2.96
FCOT @ $1.39
OCBC R @ $2.15
Buy @ $2.15
Itchy fingers. Buy OCBC Rights on the 1st day of it's listing. Last day will be on 9-Sep-14 (Tue). Exercise Price = $7.65
There's a gap of 3-5ct with the Mother Share (OCBC) and for a while, both volumes track each other very closely.Perhaps, the Arbitrage Gap is wide enough for the bigger players to do an Arbitrage ie. Sell OCBC shares and Buy OCBC Rights, equal numbers. This would make sense to those who are already holding OCBC shares for long term purpose. The transaction costs must also be lower than the Arbitrage Gap.
In my case, $2.15 OCBC R => $$9.80 OCBC or $10.25 "call' (Div = 18ct ; 1-for-8 Rights @ $7.65). Definitely not as good as the $10.15 I didn't act on. Further, a different strategy is being tried out. 😀