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FrasersComm

no wonder.....BBs out in full force to push up mother share ?!!?! :D

today is 18 Aug, last day to exercise rights...price appears to u-turn

okay..thank u very very much!

Alligator ( Date: 14-Aug-2009 20:04) Posted:

you can use ATM again, key in 0 for entitlement and key in what you want for excess rights. pay, collect receipt

alexwong ( Date: 14-Aug-2009 19:36) Posted:

Hi all, i've a question regarding the Rights thing to ask u guys.....cause this is also my first time buying rights

I've applied for my rights through ATM already and i've also requested for another 3 lots of excess rights.. All payment have been deducted and now only waiting for the date that they'll tell us the results of the rights issue...

Then now after a few days of consideration, i think i want to apply for more excess rights.. is it possible? If it's possible, cause i've already applied for provisional rights, do i key "0" in the provisional rights menu,and let say 5lots or 10 lots in the excess rights issue..can this be done? or is it after i've applied already means no way i can apply for more excess rights?

Need kind souls out there to help me with this...Thanks alot in advanced..

you can use ATM again, key in 0 for entitlement and key in what you want for excess rights. pay, collect receipt

alexwong ( Date: 14-Aug-2009 19:36) Posted:

Hi all, i've a question regarding the Rights thing to ask u guys.....cause this is also my first time buying rights

I've applied for my rights through ATM already and i've also requested for another 3 lots of excess rights.. All payment have been deducted and now only waiting for the date that they'll tell us the results of the rights issue...

Then now after a few days of consideration, i think i want to apply for more excess rights.. is it possible? If it's possible, cause i've already applied for provisional rights, do i key "0" in the provisional rights menu,and let say 5lots or 10 lots in the excess rights issue..can this be done? or is it after i've applied already means no way i can apply for more excess rights?

Need kind souls out there to help me with this...Thanks alot in advanced..

Thanks for the help. Alligator and members.

Alligator ( Date: 12-Aug-2009 20:56) Posted:

your interpretation is incorrect

what you did just down in market is BUY 20 lots of Nil-paid Rights at 0.05,

after you pay this to broker, your 20000 'rights' will be in your CDP

then before 18 Aug, you MUST go to ATM and pay 0.095 each our rights to convert them to mother share. Pay your 20 lots or $1900 plus may be 2 dollar transaction fee for the bank.

then on 27 Aug check your CDP again, they should credit you with 20000 FCOT share.

denn_goh ( Date: 12-Aug-2009 20:51) Posted:

Izzit this one from SGX?

Fully underwritten renounceable rights issue on the basis of three (3) rights units for every one (1) existing unit at an issue price of S$0.095 per rights unit

Another thing.

Is this correct? Sorry i nv do rights before

I bought 20 lots of right at 0.05 = 1000 (This is the amount i should have in my poems account)

When excercing the right at 0.095 * 20000 = 1900 (This is the amount i should have in my ATM account)

Can someone pls advise. :)

Just for those who may be interested to find out more about my technical analysis for FCOT.

Short-term flat to correction to 0.145~0.15 region.

See: http://picasaweb.google.com/tanzq83/FCOTChart12August09#5369081131359178802.

For your reference only

your interpretation is incorrect

what you did just down in market is BUY 20 lots of Nil-paid Rights at 0.05,

after you pay this to broker, your 20000 'rights' will be in your CDP

then before 18 Aug, you MUST go to ATM and pay 0.095 each our rights to convert them to mother share. Pay your 20 lots or $1900 plus may be 2 dollar transaction fee for the bank.

then on 27 Aug check your CDP again, they should credit you with 20000 FCOT share.

denn_goh ( Date: 12-Aug-2009 20:51) Posted:

Izzit this one from SGX?

Fully underwritten renounceable rights issue on the basis of three (3) rights units for every one (1) existing unit at an issue price of S$0.095 per rights unit

Another thing.

Is this correct? Sorry i nv do rights before

I bought 20 lots of right at 0.05 = 1000 (This is the amount i should have in my poems account)

When excercing the right at 0.095 * 20000 = 1900 (This is the amount i should have in my ATM account)

Can someone pls advise. :)

I manage the the rights at 0.5 at 4.57pm. Lolz.

Question. So i should now head down to ATM to excercise the rights? Just pay another 0.095 cents right?

Anyway can i see how much do i have to pay extra har.

Thanks in advance.

el7888 ( Date: 12-Aug-2009 16:42) Posted:

Last 15 mins to go for 0.055 if you want.

denn_goh ( Date: 12-Aug-2009 16:39) Posted:

Wah sian.. i queue very long for the rights alreayd still cannot get.

tanzq83,

You certainly have done your homework. Good post. Please continue to contribute on this and other counters in this forum.

tanzq83 ( Date: 12-Aug-2009 11:09) Posted:

Some facts about FCOT

Approx.diluted NAV at 0.26/share.

FCOT Moody rating: BB (satisfactory) versus other 'cheaper' S-REIT such as SAIZEN of Caa1 and perhaps also MacAuthor REIT of Caa1 (speculative).

The gearing ratio will be lowered to 38.5% from 58.5% after issurance of rights.

NAV (Net Asset Value) is affected by Assets which include properties valuations.

FCOT has commercial properties in Singapore, Australia and Japan, of which global properties valuations appear to be low.

There are also no debt due until 2012 after the rights, therefore during this period of time to some 2011 or early 2012, if the market will to be recover, there will be a improvement in business for the company.

Technical Analysis

On technical terms, MACD showed a signal yesterday which may be heading down slightly further as confirmed by momentum is still heading down, however both of these are lagging indicators ~ these may just be correction on the counter as the counter was slightly overbrought RSI (97.5 vs current 66, on 24July-6Aug) and stochastic (91.3 vs current 47.5, on 22July-4 Aug). Average Direction Index (ADX) shows that the counter may remain flat-slightly down in the short-term. >> Short-Term (within 4weeks): 0.145-0.16

Opinion

Backed by FCL (Fraser Centrepoint Limited) a property arm of F&N, I do see that this counter will not perform too badly in the mid-long term (3months and onwards) provided if they can resolve some of the problems due to their properties such as COSMO Plaza (client's default and high vacancy rate) and KeyPoint (high vacancy rate) and if the global market were to recover by 1H2010.

Revenue during 1H09, 2H09 affected by 3 main properties: (1) Central Park (~32% drop 2H08 v 2H09), (2) Key Point (~40% drop 2H08 v 2H09), (3) COSMO Plaza (~80% drop 2H08 v 2H09, due to client's default).

Long-term lease (lease expiring 2012 and after) of Total Gross Rental Income 62.5% of the portfolio.

I have yet to see the impact from the acquisition of Alexandra TechnoPark (ATP) and my concern will be what if the market dont pick up in the next 2-3 quarters? To-date, long-term lease expiring on 2012 and after (for ATP) will be 69.8%, and 15.4% will expires during 2010, it will be worthwhile to see what happens during 2010.

The FCOT Rights is currently trading at 0.05~0.055 region, assuming today it closes at 0.045 (tentative worst scenario), it translates to 0.14/share, from observation on the transacted volume, there are high volume of buyers between the region 0.05 to 0.055 over the past few sessions. Therefore it translates to a price of 0.145~0.15/share, it seems really unlikely that people is willing to sell below this region unless something catastrophe happens in the market that forces that market to head down. As for those who exercised their rights and bought during march 09 lows (at 0.135/share) and july 09 (0.17/share), the averaged-out share price will be at $0.105 and $0.115 respectively. The total volume for those 2 periods were also relatively low of around 8-10million/day over 20-odds days (cumulative total volume of around 180million) during March and about 8million on 13 July 09. Recent lowest volume during rights trading is around 12.6million.

>>Unlikely to experience high selling pressure <0.135 unless something catastrophe happens.

Conclusion

The TP of 0.12/share by POEMS is perhaps a bit too low in my opinion. Market may be trying to push the price down but I expect to see strong support at the region of 0.14~0.145 region in the short-term. However, if the market were to take a major correction of another 20-25% (STI <2050pts), there may be possibility that it may edge towards 0.13~0.135 region.

The rights issurance certainly has strengthened the company's financial position.

DPU (Distribution Per Unit) will likely to be lowered as a result of dilution.

NAV and revenue will likely to be improve in the mid-long term if there is an improvement in market.

Share price may also surge up upon any improvement or upgrades.

Limited downside exposure

My 2-cent worth. For your information.

Thanks for your sincere feedback.

tanzq83 ( Date: 12-Aug-2009 16:57) Posted:

well.. would it go south further? would it become a sub $0.10/share counter? is it a trap?? no ones know.. this is just market, nobody knows what will happen in the future.. not even Warren Buffet.

oo.. come on.. buy it at your own risk.. for those who bought it.. good luck.. for those who shot it today, well.. can see some are covering..

3 more minutes to go, buy or not buy..up to individual.. if u look at long term, say 2-3years, sure it's a good bargain, even at $0.2/share.

Cheers.

wongmx6 ( Date: 12-Aug-2009 16:47) Posted:

Base on Calculation, even if one buy the right at price of 0.55. It's consider a bargain.

Who know what going to happen on next few days. Seem like price will go toward to south further.

Could be a trap, hard to believe...

well.. would it go south further? would it become a sub $0.10/share counter? is it a trap?? no ones know.. this is just market, nobody knows what will happen in the future.. not even Warren Buffet.

oo.. come on.. buy it at your own risk.. for those who bought it.. good luck.. for those who shot it today, well.. can see some are covering..

3 more minutes to go, buy or not buy..up to individual.. if u look at long term, say 2-3years, sure it's a good bargain, even at $0.2/share.

Cheers.

wongmx6 ( Date: 12-Aug-2009 16:47) Posted:

Base on Calculation, even if one buy the right at price of 0.55. It's consider a bargain.

Who know what going to happen on next few days. Seem like price will go toward to south further.

Could be a trap, hard to believe...

Last 15 mins to go for 0.055 if you want.

denn_goh ( Date: 12-Aug-2009 16:39) Posted:

Wah sian.. i queue very long for the rights alreayd still cannot get.

q for FCOT R at 0.05, then pay for the rights.

check with your broker or what.. then subscribe to the rights @ 0.095 before 18 Aug, 9.30pm. :)

When you choose to BUY rights share in market, you do as per normal online broker,

after BUY, and paid, these will get into your CDP account

then you need to use ATM or ARE form to pay for the exercising price of 9.5cents in order to convert to mother share

your broker WILL NOT help you to exercise the Rights and convert to Mother shares, this one u must do it yourself via ATM or ARE form

denn_goh ( Date: 12-Aug-2009 14:09) Posted:

I am sorry because this is my first time buying rights share.

So in my poems account. i should place buy at 0.05 for the rights and the system will auto add up the price to 0.145

Or i should buy the rights at 0.145?

Thanks alot.

Hi Tanzq83,

Thank you so much for your explanation.

tanzq83 ( Date: 12-Aug-2009 12:35) Posted:

Hi wongmx6, deciding the right time to invest on REITS or other investments is subjective, and in my opinion is dependent on the following few things: 1. your time horizon (how short/long the timeframe which you are looking at, in which it determines your entry and exit points). for instance, the outlook for the current market may be uncertain, as property prices are relatively low (globally), high vacancy rates as a result of oversupply or rather i should say, lowered demands due to lowered demand for jobs/employment + stringent lending criteria from banks (companies cant borrow (as much or not at all)). 2. risk appetite or maybe, your holding ability for equity (how long can you wait for the company to be doing well again). 3. fundamentals of the counter, in this case FCOT, how strong is the management, financial position and etc. after considering some of the mentioned pointers, i feel that you will be able to make an informed decision to buy the counter or not. personally i see that demand for offices will gradually pick up around 2H2010 and have to agree that some of the properties such as those in singapore (Chinasquare, Marketstreet and KeyPoint) will do well again due to scarity of commercial space here. In addition, property valuations will probably improve over the next few years if this situation improves which also translates to improved lending condition ~ companies including FCOT are able to borrow at lower rates again to finance their assets. Perhaps another point to note for KeyPoint is that the Circleline station: Nicoll Highway looks likely to start operation next year, this may helps to improve the high vacancy rate at that time (future prospects). i hope that im not been too optimistic about the recovery, but we are now about a year into this recession and although growth may be slow after that, but i certain feel that this is a good time to invest REITs as their valuations are still low (and it offers dividends, although not guaranteed, but always good to have). i cant deny that we may see the counter (or rather the general market sentiments) going down during late sept to october but i always try to stick to the 3 points mentioned. Conclusion: (1) Fundamentals of the company- must be sound, (2) Individual Holding ability/risk appetite, (3) Time Horizon that you are looking at to exit, maybe one more point (4) future prospects. Surely we wouldnt want to invest in a counter which has high valuation now (because it doesnt tally with the market fundamentals)? and we wont want to join in the 'party' halfway through, right? Markets nowsadays are forward-looking (and very kiasu), if they see anything that may be good in the near term (say 3months time), they will price in now. Just my 2-cent worths.

wongmx6 ( Date: 12-Aug-2009 11:59) Posted:

Hi Tanzp83,

Can you please kindly share, at present moment, isn't the right time to invest in Reit?

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