Monday, April 28, 2014

Saizen REIT [Portfolio Buy] April 2014


Just one of the many places under the portfolio of Saizen REIT. In fact, they have 139 properties in 14 different cities.

So, a month after I decided to take the trade in my SCB account with Croesus Retail Trust, for some reason I felt compelled to get a stake in Saizen REIT I shall list the rationale below.

Current dividend yield based on the forecasted DPU will give a yield of 7.22%, which is pretty decent. Above average I feel

Based on Price/NAV, the Trust is currently selling at a 23% discount!!! Now, this is just crazy!

Based on the 104 week low, the lowest price ever recorded was 0.867. This represents a downside risk of 3.6% based on capital gains loss.

Of course, there is no gaurantee that the 104 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 still insane, since you're going to be getting a yield of 3.6% every half a year.

That means if you hold on for just half a year and get your dividends, you will almost definitely be in the green as long as the bottom can hold for this stock. But trading at more than a 20% discount to its NAV? Insane still!

With an invested position now, I will waiting for their annual report to come out. If this continues to weaken, I really feel very tempted to build up an even larger position with this stock! We shall see first, all right?

For some reason, the transaction costs were $4.87 this time around. That is about 0.54%, much higher than the 0.25% commission 0.04% SGX fee and 0.0075% clearing fee of SGX. It should be about 0.32% with GST included. Anyway.... it's just a few dollars, so I won't think about it this time. I will wait for my account to update all the transactions and send me my confirmation before I pursue this matter. I must admit that I did confirm all the charges in a jiffy because I was busy at work.

Bought T8JU.SI @ $0.90

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