Sheng Siong's IPO and the American debt ceiling.

I received two emails today from readers. The first asked me about Sheng Siong's IPO and the second commented on how the Americans have come to a compromise on raising the debt ceiling.

To the first reader, I said that it has been a long time since I took part in any IPO, believing that they do not offer good deals for investors most of the time. I rather wait and see if I could get the shares

Tea with AK71: Tartlets and a view of the city.

Life is unpredictable. Sometimes, we get nice surprises and, sometimes, we get nasty ones. Today, I had a surprise which resulted in me being quite free of work. So, I suppose this is a nice surprise. However, I found myself wondering what to do today.

I did the laundry in the morning, had breakfast with a friend in town and came back home. After washing up, I checked my blog, replied to

U.S. Senate scuttled emergency legislation!

So many want to have a two party government in Singapore. Personally, I always say that if something is not broken, don't fix it. Seeing how the two parties in the US government are acting, I am thankful Singapore is not on the same boat.


With National Day just round the corner, a week after the 2 August deadline for the US to raise its debt ceiling, I am counting our blessings. We never know

How will a default by the US affect Singapore?

I read an article in the newspapers today and it confirmed my fears that Singapore could once again suffer a severe downturn if the US government does not raise its debt ceiling come 2 August. Many would have to face extreme hardship once more.

Salient points in the article:

1. US banks account for some 15% of domestic lending in Singapore.

2. If US defaults, US banks will withdraw their funds

Banks are slashing jobs!

Banks are retrenching. Should we be worried? Is a recession round the corner? Your guess is as good as mine. Best to have our emergency funds ready just in case. If we are thinking of buying shares on the cheap, make sure we have a war chest ready as well. Oh, make sure it is not empty. ;)

HSBC will slash more than 10,000 jobs as part of the global banking giant's recently announced cost-cutting

Cache Logistics Trust: 2Q 2011.

The decision to use funds from the partial divestment of Saizen REIT to invest in Cache Logistics Trust at the right prices a few months ago continues to be rewarding.

The management has declared a DPU of 2.086c for 2Q 2011 which is much higher than the DPU of 1.71c the same quarter last year in 2010. At the high of 99c/unit hit this morning, the REIT had an annualised distribution yield of

Sabana REIT: 2Q FY2011.

I have been accumulating units in Sabana REIT even after it went XD the first time round, convinced that it has many high quality assets and that the income distribution is sustainable for the foreseeable future.

Last night, it released results for 2Q FY2011 and results were largely in line. DPU of 2.18c was declared, slightly less than my expectation of 2.2c. At the current unit price of

AIMS AMP Capital Industrial REIT: Higher DPU and 20 Gul Way.

AIMS AMP Capital Industrial REIT has once again delivered results which are above expectations. I was expecting a quarterly DPU of 0.5c but, instead, 0.53c has been declared. XD: 2 August. Payable on 14 September.

What's more? This is only 96.8% of total amount for distribution, not 100%. Annualised, it would be 2.12c which means a distribution yield 9.64% at the unit price of 22c/unit.

Gearing

Noble Group: Another quick trade.

Technical analysis (TA) is dynamic. Day to day, charts have new information and TA will provide new insights. Not too long ago, I wondered if Noble Group's share price might hit $1.90. Read blog post here.

If you guess that I must have been waiting to sell at $1.90, you are right. However, doing a bit of charting last night revealed that we might not see $1.90 although there is still a chance

Golden Agriculture: 200wMA cleared.

Golden Agriculture closed above the 200wMA in the last session. Cleared of this hurdle, we could see its share price going higher from here.


It is interesting to observe that the 50wMA has been crucial as support, seeing how share price bounced off the line each time it was tested in the past.

It would not be unrealistic to expect any retest of the 50wMA to see strong buying interest.

First REIT: 2Q 2011 results.

First REIT's results are more or less in line with forecast with a DPU of 1.58c for 2Q 2011. The REIT will go XD on 28 July and income distribution is payable to unitholders on 29 August.

The REIT's strong numbers have been mentioned before and here's the update:

NAV/unit: 78c
Interest cover ratio: 15x
Gearing: 13.8%

I am pleasantly surprised that its management is planning to have a special

Cambridge Industrial Trust: 2Q 2011 results.

The last time I blogged about this REIT was on 28 April and I was so negative about it that some readers divested their shares in the REIT straightaway. Read blog post here.


Now, I have to say this again that my blog is purely to share my thoughts, a place where I think aloud, so to speak. It is not to exhort anyone to buy or sell anything.

In a reply to a reader, OT, I mentioned that I would

CapitaMalls Asia: Interim dividend declared.

Today, during lunch hour, when I read that the management is declaring an interim dividend of 1.5c per share (XD on 31 August and payable on 16 September), I immediately put in a buy order. I feel that it is a generous payout for a growth company and testament to the fact that it is doing well.

2Q 2011 EPS: 4.2c
1H 2011 EPS: 5.5c
NTA per share: $1.52

See presentation slides here.


Its share

NOL: A quick trade.

On 12 July, NOL formed a white candle and I mentioned that I was wary of its reliability as it was formed on relatively low volume. I also used Fibo lines to determine where stronger supports could be found. Then, I added to my long position at these supports. See blog post here.

On 19 July, NOL formed a white hammer and I wondered if price could rise to test $1.45. See blog post here.


For the

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Noble Group, NOL and CapitaMalls Asia.

Just a quick look at some charts:


Noble Group's share price formed a bullish engulfing candle on high volume. If we turn on the MA envelope, we see how it touched the lower boundary and bounced off. Stochastics is in the oversold region and could turn up. Could share price rise to $1.90?


NOL's share price formed a white hammer on high volume. Similarly, Stochastics is in the oversold region

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Sabana REIT: Safe to buy now?

Someone who managed to get some units of Sabana REIT at IPO asked me if it is safe to buy more units of the REIT now? Before the counter announced its first income distribution of 3.04c, I blogged about how I felt Sabana REIT was a great investment then.

Of course, there were nay sayers and people who told me I was wrong. There were also many who got in at the REIT's IPO and were burnt,

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Noble Group: Caught a falling dagger?

Today, for the first time ever, I became a shareholder of Noble Group. I will confess that I do not understand the business and that going long here is taking on quite a bit of risk. Then, why did I do it? Let me share with you what's on my mind.

The share price of Noble Group is, undoubtedly, in a downtrend. I drew two trendlines, one connecting the lower highs and one connecting the lower lows

NOL: A white candle.

A white candle formed on NOL's chart today. For most of the day, I saw a black spinning top after its share price gapped down at the start of the day. So, the rather large buy up, after market closed, which pushed up NOL's share price to close 1c higher was somewhat surprising.


However, the white candle was formed on lower volume compared to the previous session's black candle. Share price

CapitaMalls Asia: TA update.

CapitaMalls Asia's share price did not experience the kind of explosive upswing Capitaland's did in the last session. However, it looks promising too in a subdued way as volume was pretty decent as price moved up a bit.

Daily:

 Weekly:

We could see gap closed at $1.55 in time. This would probably also coincide with the declining 50dMA sometime next week. Judging from the highs in the last two

NOL: TA update.

NOL has been one big disappointment. So, is this the fault of the counter? Nope. We can only be disappointed if we have expectations and when they are not met. It was a mistake and I will accept it as such.

However, downtrends are rivers of hope. NOL's share price could be overdue for a rebound. This does not mean that I think a rebound is imminent though.


Look at the daily chart and we could

Capitaland: TA update.

What an amazing run up Capitaland's share price had in the last session. That the run up was accompanied by huge volume is good news for bulls. Short sellers were probably scrambling to cover their positions in the last session, surprised by the buying strength.


Anyone who added to their long positions or initiated one in the last few sessions would be wise to search for exit points, if they

Golden Agriculture: 68c support.

In my last blog post, I said that chances of a breakdown in price are higher. I have been proven wrong by Mr. Market, once again demonstrating the risky business of guessing Mr. Market's future movements.

Golden Agriculture's share price touched a high of 71.5c on very high volume before closing at 70.5c in the last session.


People ask me if the price could go higher? Well, only Mr. Market

First REIT: Yield accretive purchase in South Korea.

First REIT has bought a hospital in South Korea. This has a nett property income (NPI) yield of 9% and is a yield accretive purchase. The purchase is most likely going to increase the distribution per unit (DPU) for unitholders since it will be fully funded by debt, increasing its gearing level from 13.8% to 16.4%. Expectations of a higher DPU could account for the recent strength of the REIT's

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Singapore industrial property market picking up!

People tell me to be careful about investing so much in industrial property S-REITs. They think it is going to experience a contraction in demand. I personally do not think so and shared my research here in my blog.

"According to Colliers International, average monthly gross rents for prime factory and warehouse spaces surged between 6 and 7 per cent on-quarter. This was the fastest quarterly

Worst ever NDP song!

Legal issues aside, this song is really mindless.

We are celebrating National Day! We are suppose to celebrate Singapore's achievements and vision for the future!

How does this "Fun Pack Song" fit into the picture? It is demeaning! The organising committee should be taken to task! Definitely in bad taste.

Haresh Sharma, this is a joke!

I want Newater and I want a cold drink
You and me,

Hyflux secures funds of S$150m.

The Tuaspring desalination plant is part of a project expected to cost S$890 million, which the firm said it is "on track" to secure funds for this second tranche.

More fund raising exercises on the way, I think.

Related posts:
Hyflux: 6% perpetual Class A preference shares.
Hyflux: $800 million bridge loan.

Male cheerleader brings it on!

Thoroughly entertaining and somewhat disarming!

Golden Agriculture: FA and TA.

I retain a very small long position in Golden Agriculture. The price of crude palm oil (CPO) has made a new low for 2011, closing at RM3,040.

"Inventories are likely to accumulate in the coming months, unless prices fall to around MYR2,700-MYR2,800/ton, levels that might spur strong physical demand for the commodity and prompt traders to buy on dips, said a trading executive in Kuala Lumpur...

Capitaland: Weekly chart.

Capitaland seems to be enjoying a respite.

A quick look at the weekly chart suggests that a retest of the declining 20wMA as resistance is likely. It could happen this week or the next couple of weeks.


If I were to hazard a guess, it could be at $3.14 if it should happen as that is also where we see some resistance provided by the candlesticks. However, volume declined in the last couple of

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Silver: Price formed another lower high.

Staying cautious on silver has been the right thing to do. The declining 50dMA seems on track to forming a dead cross with the 100dMA in the near future with silver's price forming another lower high this week, closing the week at US$ 33.70 an ounce.


All eyes are on the 200dMA and whether silver's price could stay above this long term moving average. If the support holds up, we could see bulls

AIMS AMP Capital Industrial REIT: 2nd AGM.

Northtech
Some readers are concerned that I am divesting my investment in AIMS AMP Capital Industrial REIT. Is there a change in its fundamentals? Is it going down from here?

 I did blog about my reasons for partially divesting my investment in AIMS AMP Capital Industrial REIT. In a nutshell, I am just re-balancing my portfolio to reduce over-exposure to this REIT. It is a risk management