Gravity Pulled My Top Holding Back To Earth Today! I Look at It's Latest Financial Result (4QFY2017).

Yesterday, I blogged about Frasers Commercial Trust's sudden rise in share price. Today, the price dropped by 2.04%. Most REITs' share price went down btw. At least for the 1s that I owned. 😭

Technical

RSI and Stochastic indicate overbought price. Divergence spotted. Hopefully, the support line at $1.43 can hold.

Screenshot from Chartnexus

Fundamental

As promised, I shall give a quick review on it's latest financial results which was released on 20 Oct 2017. Even though I already own FCOT's shares, I will try to be as unbias as possible. If I feel it's bad, I will say it straight. But that is strictly my personal opinion. I may feel it's bad but you may have a different opinion.  Disclaimer: I am just sharing my thoughts and interpretation of information that I have gathered so far. This Post is solely for information/education purpose only and should not constitute any buy or sell decision. As usual, dyodd before making any trade decision. Without any further ado, let's dive into it's results.

Alamak! First page of 4QFY17 Financial highlights doesn't look good. Nothing good on this page. "BAD" is added by me. That is not indicated on the actual report. Heehee.

Overall, the DPU for FY17 is stable at 9.82 cents. This may sound good or bad and depends on individual. If you have high expectations of this REIT, you may expect the DPU to increase.

Jialat lar. So many "BAD"

Portfolio valuations of Australia Properties Up. Nice!

As United States is likely to increase Interest Rate at the end of the year, it is better for REITs' borrowings to be on fixed rate.

Stay Tuned As We "Visit" Their Properties Next. To be continued...

My Top Holding Stock Just Went Up by 3.52% Today!

For those that have been following my blog, you will probably know Frasers Commercial Trust is currently my largest holding. Today, the price suddenly shot up by 3.52%. The rise in price happened during the late afternoon. So what news triggered this price rise?

Screenshot from Chartnexus. Look at that Long Candlestick! Breaking out from it's range with a huge Spike!

Screenshot from My SGX App

I checked the Spiking app and could not find any news related to BB buying. A check in SGX website did not return any positive news. With this price surge, FCOT is currently trading at it's 52-week high price. So is it a good time to reduce my position? My average purchase price is $1.333. My current dividend yield based on my purchase price works out to be 0.0982/1.333 x 100 = 7.37%. In my opinion, this is a very attractive yield. However, we would also need to examine their latest financial results to determine if this is a counter worth holding. 

Screenshot from Stocks.Cafe

To be Continued...

I Bought Back This Stock...

The stock which I bought back after selling it in August is none other than Religare Health Trust. I bought this Trust back in Feb which I also blogged about the purchase in an earlier Post. To read my RHT Post, simply type "RHT" in the Search bar at the right if you are using a tablet or desktop PC. I have recently changed the background photograph to reflect the market which I am investing in. Please also click on the Q-chance link so I can earn some affiliate commission if you are a Qoo10 shopper. 😀

Revenue and Beds Increase.

Potential additional bed capacity for the coming years

Beds...beds...

And More Beds...

Financials

Based on Unit Price of $0.855, the dividend yield is 5.5%

DPU drop y-o-y

The dividend yield is not exactly attractive in my opinion. The reason for the purchase is mainly due to the potential acquisition by Fortis Healthcare.

Analysts' Target Price

Things To Take Note Before Buying

CFO sold off his shares. Does that mean the buyout price is lower than his sell price?

Fixed interest rate is rather low and could be affected by rising interest rate

RHT distribution policy is at least 90% of distributable income which is currently at 95%. Net Asset Value is $0.835 and Gearing Ratio still remains low at 23.1%.

In the event that the buyout fails to go through, I will just have to stay calm and keep collecting dividends. Their annual report is also the nicest I ever seen so far. 😛

Multiply Your Money The Easy Way

Good news for DBS Multiplier Account holders! DBS has recently revised their interest rate for Multiplier Account and it is now even easier to earn higher interest rate the hassle free way! We will need to have at least 2 eligible transactions per month in order to earn the higher interests. 1 of the criteria needs to be Salary Credit. The other criteria could be credit card, home loan, insurance, or investments with the bank.

Take an example of someone who has $3000 salary credited into his bank acount every month. Assume he receives $50 dividend from shares and spend $10 on his DBS credit card every month, he would receive 2% interest per year! Previously, the criteria to earn 2% interest pa is way much higher. There is no lockin period for funds inside the Multiplier Account and we will receive interests the following month. I like the passive and hassle free way to earning higher interests as I do not need to have a minimum spending on my credit card or minimum investment amount in order to fulfil their crietria. I am using the POSB Everyday Card for my daily commute, receiving dividends in my bank account and also buying shares with DBS Vickers. 

The downside is only the first 50k in Multiplier Account will enjoy the higher interest rate. For those interested, can check out the link here.

However, depending on individuals, ocbc360 could be a better choice for higher interest rate if you could fulfil their conditions.

Disclaimer: I am not given any monetary incentive by DBS to promote their services. This is purely a public service announcement. Cheers!

My Dividend Income for Oct 2017

Once again, it's time to review my dividend income results for Oct 2017.

Stock Portfolio (Cash)

Similarly to Sep, my dividends for Oct is also experiencing a slight drop compared to previous year. This is mainly due to the absence of dividends from Suntec Reit and Soilbuild Business Space REIT. I sold their company shares this year.

Screencap from Stocks.Cafe

These are the companies that will be distributing dividends to me.

Frasers Centrepoint Trust - $89.10

Cache Logistics Trust - $318.987

Frasers Commercial Trust - $305.4965

Duty Free International Ltd - $75

Total - $788.58

Cache Logistics Trust is currently my largest holding. My top 3 holdings are as shown below.

A piece of  good news for Cache shareholders, Cache has settled their lease dispute amicably with Schenker Spore. Finally, my Cache position has chance to turn positive.

More dividend on the way for Cache unitholders

Bond Portfolio (Cash Inv, Unit Trust)

My Unit Trust bond portfolio sees an increase in dividend compared to previous month. In Oct 2017, I received $983.61 in the form of units compared to $966.17 in Sep. The increase was a result of my monthly purchase of UOBAM United Asian High Yield Bond Fund.

Total dividend income for Oct 2017 = $788.58 + $983.61 = $1722.19

Total dividend income for Sep 2017 = $144.66 + $966.17 = $1110.83

Options Trading Result

I also have an Options contract expire in Oct which netted me USD$525 in profits.

Oct 2017 Options Trading Result = USD$525 - $48.44 (comm + fees) = USD476.56

October 2017 has been a fruitful month compared to Sep. I am expecting a drop in dividend income for Nov and Dec. I will be on the lookout for companies and opportunities to buy more shares in the meantime. Stay tune!

I Like SATS - Conclusion

1Q17/18 Highlights

Free Cash Flow drops y-o-y

For more info on SATS, check out their Investor Relations Page here: link.

Added SATS

I added SATS to my stock portfolio on 12th Oct 2017. What I like about SATS: proven track record, local monopoly for inflight food catering and gateway services, growing EPS, DPS over the years and low debt. I believe their is further local growth potential with fourth and fifth airport terminals coming up. Temasek is the major shareholder holding 39.87% of shares.

Assuming a DPU of $0.17, my dividend yield based on purchase price of $4.65 would be 0.17/4.65 x 100 = 3.66%

This yield may not seem high for now but if the EPS can continue to grow, SATS will be able to raise the DPU again in future. This is also a dividend yield that I could accept. They have been growing their DPU in the past. Their payout ratio has been around 70% range for the past few years. I believe they will not have any issue maintaining the DPU unlike some *cough* telco *cough* companies. This is a small purchase for me. If the share price further dips, I will be able to slowly accumulate. With DBS Multiplier and Cash Upfront account, I am basically buying shares commission free. The interest that I earned from this account already more than cover the fees.

This is not a recommendation to buy SATS. The price is currently on a downtrend. Please DYODD before buying or selling any company shares mentioned in my blog posts.

I Like SATS - Part 2

Part 1: here

Food Solutions

Here are some positive news I read from their 2016-17 Annual Report:

Food Catering business continues to grow both locally and overseas

Gateway Services

Gateway Services also growing with new contracts won

Financial Highlights

EPS and ROE increasing over the years

DPS also increasing

Majority Revenue from Singapore and Japan

The numbers are increasing over previous years. Looks good to me.

To be continued ...