Friday, March 28, 2014

Croesus Retail Trust [Portfolio Buy] March 2014

Just one of the many places under the portfolio of Croesus Retail Trust.

I decided to take the trade in my SCB account as I saw the price decline to a level which I thought has a very good margin of safety. I shall list the rationale below.

Current dividend yield based on the forecasted DPU will give a yield of 9.27%, which is honestly, quite sickening.

Based on Price/NAV, the Trust is currently selling at a 4.15% discount.

Based on the 52 week low, the lowest price ever recorded was 0.845. This represents a downside risk of 3.5% based on capital gains loss.

Of course, there is no gaurantee that the 52 week low will hold and people will buy in at that price. However, if it really is capped to the downside here, the risk reward-ratio is insane, since you're going to be getting a yield of 4.5% every half a year.

The last dividend will actually be paid out in a few days, for the 2nd half of 2013. I'm looking forward to the announcement likely in August later this year to announce for the distribution for the 1st half of 2014.

With an invested position now, I will definitely be watching this like a hawk, ready to pick up cheaper shares to make sure that with the dividends distribution, overall returns for this investment selection will be positive!

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