CACHE is another industrial REIT whose shares I owned other than Soilbuild Business REIT. I still own Soilbuild Business REIT sharesthrough CPFIS. Recently, the company announced rights issue to raise approximately S$102.7 million. Approximately S$99.9 million (equivalent to approximately 97.3% of the gross
proceeds) will be used to partially repay Cache’s existing borrowings to reduce
aggregate leverage and create additional debt headroom for future growth.
The rights issue will reduce the gearing of CACHE from 43.4% down to 35.5%. However, the DPU would also reduce with the increase in number of shares. NAV would also drop slightly.
My average purchase price for CACHE is $1.12 and I currently own 16000 shares. I am still in the negative for this REIT. I am entitled to 2880 shares. I accepted and applied for 7120 excess shares. Hopefully, it would not be a mistake to average down. The results for the rights issue would be out on 9th Oct.
Is CACHE Worth Investing Now?
CACHE's share price as at 22 Sep 2017 closing price was $0.835. It is trading above it's NAV. For this company, I don't it's worth the premium currently even though the dividend yield may seem attractive. I did cover CACHE in an earlier blog post. I don't see any positive news coming from CACHE.
Screenshot from Chartnexus
However, at an offer price of $0.632, I will buy first. Buy more too. Assume a DPU of 6.882 cents, based on my purchase price of $0.632, my dividend yield for the new shares would be 10.89%. Of course, the dividend yield for my existing shares would also suffer as a result.
Screenshot from Stocks.cafe
The Management was capable of growing the DPU in the past. Hopefully, they could turn this REIT around soon. Until we could hear some positive news coming from CACHE, I would not touch this REIT if I am not currently invested.
Stock Portfolio (Cash)
There's a drop in my Sep 2017 dividend income compared to previous years. This year's drop is due to change in XD date of Croesus Retail Trust which was brought forward to Aug. CRT will no longer be contributing to my dividend income from now on as majority of shareholders voted in favour of Blackstone's buyout offer.
Screenshot from Stocks.Cafe
These are the companies that will be distributing dividends to me.
Bond Portfolio (Cash Inv, Unit Trust)
My Unit Trust bond portfolio sees an increase in dividend compared to previous month. In Sep 2017, I received $885.41+80.76= $966.17 in the form of units.
Screenshot from dollarDex
Total dividend income for Sep 2017 = $144.66 + $966.17 = $1110.83
That concludes my dividend report for the month of Sep 2017!
There are a lot of haters for this video. I suspect they are working for the media. Haha.
Bottomline, when people are fearful and start dumping good quality stocks, it's time for us to be greedy. However, we will need to have the mental capacity to withstand paper losses in the short term. We do not have a crystal ball to tell us when the market has hit a bottom. Most likely after buying, the price may continue to move southwards. Alternative, wait till there's clearer sign such as higher lows on technical charts before buying.
Do you exhibit qualities of becoming rich and successful someday? Watch these 3 part mini series videos to find out!
Part 1
Part 2
Part 3
I want to highlight the point of don't be a victim of your circumstances. It's important not to play the victim card and start blaming others for your failure. For those that often lose money in trading or investing, don't blame the market or the people whom you get stock tips from. Instead, find out the reasons why you are losing money instead of profiting consistently. What I like about the financial market is every retail trader is treated equally. The market doesn't judge you based on your education level. You don't even need to have a degree or finance related background to trade or invest. I don't have both by the way. It all depends on individual skills and the amount of time and effort you are willing to spend in order to master the instrument.
The 2 videos below tell us how the Rich and Poor do things differently. I personally feel that Rich and Poor is just a state of mind. Everyone has their own expectation of how much networth to be able to consider oneself being Rich. Therefore, my financial goal is just to to able to achieve financial freedom through multiple streams of income. With that said, there are stuff in the videos that I also believe that differentiate the Rich and the Poor even before I came across the videos.
Highlights of the 7 Things That The Poor Do
#1 Consuming Vs Creating
This is a classic example. We can just take a look at the obscene income hollywood stars and movie studios are making for each blockbuster. Handphone manufacturers like Apple and Samsung are also making huge profits every year by releasing new handset models.
#2 The Poor Lose Time Consuming Media
Instead of spending time improving ourselves in terms of financial literacy, a lot of us like to spend our spare time watching videos and playing video/mobile games. This syndrome is very common in Singapore and we can see most people doing that while commuting. We seldom see commuters reading a book or newspaper nowadays. This is actually making the content producers rich!
#3 The Poor Spend A Lot of Time To Save A Few Dollars
The Poor spends time to make money while the Rich spends money to buy time. The Rich will focus their time doing stuff that make them rich. They would pay others to help them with stuff that doesn't add value or produce less wealth for them.
#6 Most People Have One Source Of Income
This is very true. Most people only have a fulltime job and doesn't have other sources of income that could help them to achieve financial freedom. They may set aside an amount of money for savings each month but the miserable interest earned would not be able to fight inflation in the long run.
#7 Most Aim to Retire At 65
Sad to say, as life expectancy increases, retirement age has to increase too. People are finding it hard to retire early. In the past, retirement age was 55 years old. So what could people do after 55 as a lot of jobs would be replaced by robots and automation eventually? Collecting cardboards? Become entrepreneurs by selling tissue packets at hawker centres?
On to the Next Video: 8 Habits Rich People Have (That Most Of Us Don't)
#1 The Rich and Successful Build Morning Routines.
The Rich looks forward to each day while most of us drag ourselves to work basically. However, I am not quite sure how doing yoga in the morning would help in achieving success. Perhaps it refers to doing stuff that would energized and prepare you for the day ahead.
#2 They take Immediate Action
The Rich takes action and do not give excuses why not to do it. The Poor tend to procrastinate and give excuses.
#4 They kill time wasters
No netflix and chill? No cat videos? Done.
#5 They visualize their success
Visualize and experience in your mind the goals and results that you want to achieve.
#6 They step out of their Comfort Zone
Successful and Rich people do stuff that the average person is afraid to do.
#8 They cut their Loss
Rich people are not afraid to lose money and they cut their losses. They let their winners run and cut losses short. The Poor are afraid to lose money and hang onto their losses, hoping things would turn around eventually.
Do you have the Rich or Poor's mentality? Hope you find the videos educational!
It has been a while since I last updated on my Forex Trading Experiment. I have stopped trading on lower 15 min/1 hr chart. My stop loss got triggered quite often due to the tight stop loss. The trading experiment will just focuses on 1hr/Daily chart moving forward. The screenshot below shows all the trades taken so far.
$1000 Profit On a $5000 Account in Less Than 2 Months!
The gain on my account is roughly 1000/5000 x 100 = 20% However, if I just calculated based on the total amount risked for the 15 trades, the gain would be 1000/(150 x 15) = 44.4%!!! If you have been following my Forex Posts, you would know I am risking $150 per trade for the potential to make $300. In total, I was risking $150 x 15 = $2250. But in reality, it would be impossible for me to lose this amount. I was following the trend on a daily chart. Unless the trends always reverse after I took it, which is not impossible but unlikely. Imagine flipping a coin 15 times and getting the same side everytime. Possible?
The amazing thing with this result is actually I was only right 50% of the time! This reinforces the risk/money management rule I was making on my first Forex Trading Post. My Risk Reward for each trade is 1:2. Without having proper money management rules in place, a trader could win 90% of the trades but still end up losing money. This also applies to other trading instruments like stocks and futures. As can be seen from the result, I may not have the best trading method which is only right 50% of the time but still end up profitable!
