Tuesday, 11 March 2014

AimsAmp Ind Reit: Rights issue

I was tempted to buy in AimsAmp due to the good dividend yield . Then then then... luckily I saw on a blog that I follow that they have rights issue - OFFER OF 7 FOR 40 @ SGD 1.08.


No wonder the price dropped and thus the good % yield! I think I shall wait for a while for its price to stabilise before I do anything. It's now trading at $1.31.


A few other reits I am looking at now is CDL, Frasers Centrepoint and Starhill global. Bought CapitaRetail China.


Just a few points here to remind myself:

* Sometimes dividend yield can be a deceiving figure. Since % is correlated to the share price. Look also at the absolute figure to see whether it is in actual fact increasing or decreasing.

* A chart gives only a 2D representation of a stock (one-sided view) but we must look at the entire 3D view of a stock before making a judgement. As behind every major fluctuation in a stock (which seems independent of the macro market), lies a story to be uncovered...

* The magnitude of drop a chart show you may not always be what you see. Is it a full chart or a partial chart? What is the time frame you are looking at?

* Always look at the company's earnings and cash flow.

* REITs tend to issue rights to fund their debts, do check the purpose of their rights issue before deciding to sell or subscribe. With rights issue, share price would get diluted.

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