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Yes the ex-right nav is 26 cts, which is way above 12.5 cts. The main reason why FCOT, the predecessor of Frasercomm, drop from 89cts to the teens is funding or its gearing, which has more or less disappeared with the passing of the financial crisis and new funding, backed by F&N so the price should recover somewhat though not expected to be to previous level. The new management are so sure of their financial position that they can afford to give 1.44 ct dividend for 1H09(15.2% p.a). Sentiment has improved markedly in the markets they operate, Asia and Australia - just compare the prices of property and financial counters from just a few months ago. Indeed all the reits prices have also significantly improved over the last few months. The majority holders and their associates has the muscle to make any significant shortseller pay deerly and they are a long way off from having to trigger a general offer. With more shares listed, it makes the counter more liquid, attracting more players - genuine investors and speculators alike because its easier to buy and sell. Wether the price will go up or down nobody knows. The 12.5 cts is at best a wild guess or a wish for some people who had missed the run-up to get in. I think the market sentiment is a very big influence on the share price, and that sentiment so far has been improving by the week barring any major correction. Buy or sell with your eyes open.
Zelphon ( Date: 01-Aug-2009 10:20) Posted:
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Well..
1) Dilution due to Rights lower DPU and thus lower yield
2) P/B ratio is worse than other REITS after dilution
As such, other REITS are more attractive !
choonmng ( Date: 01-Aug-2009 12:36) Posted:
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Can anyone provide more insight as to why the price will drop instead of appreciate?
a) With rights completed, their funding problem will be resolved till 2011
b) Any recovery end year or early next year will provide stablization above current condition. There may be opportunity to sell a property or two to futher improve their financial strength
c) After rights with NAV adjusted from 0.79 down to 0.26, price over NAV is similar and comparable to other reits?
Instead shouldnt it be time to load since it provides safetly margin till nav of 0.26 and have an extremely strong parent supporting it?
Yup..
I agree..
I am looking at 0.125 - 0.130 price range..
soloman ( Date: 01-Aug-2009 09:11) Posted:
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For some folks who think NAV is 79 cts, think again
After rights, NAV is approx 26 cts or even lesser due to assets value depreciation-
from ===>> reitdata.blogspot.com
Clarification - what Phillips mean was when the close to $3 billion units trade, price will drop
Notice people buying madly into current price of 19 - 20 cts thinking it is very cheap, when actual fact is not
When correction comes, price will get cheap - PHILLIPS
shouldn't the XR price now factor in the rights issue?
soloman ( Date: 31-Jul-2009 21:42) Posted:
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Hi Junction,
NAV of 79 Cents is before or after dilution due to right? How much last year Div?
junction ( Date: 31-Jul-2009 23:28) Posted:
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If anyone believes it will drop to 12.5 cts, they should short the counter and lets see whether they would lose their pants. The reason why this counter formerly FCOT drop from 89 cts to the teens was because of the financial crisis and they needed to raise funds in a tight market. Now that the situation has turned, and they have taken care of the liquidity backed by a very strong parent F&N, the price should appreciate. The NAV is 79 cts according to SGX magazine.
soloman ( Date: 31-Jul-2009 21:42) Posted:
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PHILLIPS SECURITIES
- THIS ONE WILL SELL TO 12.5 CTS OR BELOW WHEN RIGHTS TRADE
PLEASE DON;T CARRY THE BABY
Hi baniel,
You are entitled for the right. Just wait for the letter of notification. I am looking at both SGX and http://www.fraserscommercialtrust.com/ for the x-date for the dividend and rights with noavail.
Maybe someone can tell us.
baniel ( Date: 29-Jul-2009 15:57) Posted:
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Ya hoh.... I think so too.
axlaxlaxl ( Date: 29-Jul-2009 16:11) Posted:
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I think the book closure date is today (29-7-2009) 5.00pm. They will then finalise who are entitled for the rights then only send out the application forms. So, you should entitle for it. Regards.
baniel ( Date: 29-Jul-2009 15:57) Posted:
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hmm....i think it's only *1, not 4...u havent even pay for the rights yet.
baby88 ( Date: 29-Jul-2009 15:42) Posted:
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Hi, I bought some FrasersComm lots last Monday. Havn't received any letter on the rights. Does it mean I don't get it? What's the X date of the dividend/rights? Anybody knows? Thanks!
So, the dividend is 1.44cents ? If we have 1 share before the ex date, we should have a total of 4 right now (if we exercise it). Then, the 1.44cents is x 1 or x 4 ??? Very happy to have bought this counter. Thanks again e17888.
axlaxlaxl ( Date: 29-Jul-2009 15:26) Posted:
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Heng, not right issues again! Dividend payout - 1.44 cents.
el7888 ( Date: 29-Jul-2009 15:19) Posted:
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Hi ronnie123 & baby88,
You must have making money from this counter already... plus today annoucement on dividend. Happy for you!
Hi,
Is this a good counter to get into? What price is good to go in? We're expecting way lower than .135 ? Thank you for your advice.
oops!! fund raised not enough....raising MORE ?!??!?!?!? :P