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 side points to note:

* 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 before deciding.


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