Post Reply
41-60 of 216
well, i should have accumulated more over the past few days. might consider loading more considering the clear positive uptrend of this counter.
this counter is definitely still MUCH below its FAIR value. Wise investors who got in should be gleaming with delight now as it might just unleash its FULL potential soon if it can successfully lisk in HK
. People who are going to get in will still be getting a GOOD bargain. Well, these are just my personal opinions. Whether u believe my earlier postins is entirely up to your discretion.
YEAH!!!YEAH!!!YEAH!!!
Fortune Reit has made an OFFICIAL application to the Stock Exchange of Hong Kong for the DUAL LISTING!!!
the link is below:
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_E0D85FEB361BCDFA482576EE0031A187/$file/PriListing-SEHK-Annc.pdf?openelement
oops, sorry for the late reply. logged off when i posted yesterday. yeap, it is denominated in HKD.
Just another point to share with you guys.
Trading in HKD is a GREAT ADVANTAGE!!!
Looking at the current exchange rate, 1 SGD is equivalent to around 5.56 HKD. By comparing to a 5 year chart of the SGD-HKD conversion, the peak is 1SGD to around 5.7HKD. This means that the exchange rate is considered VERY HIGH at the moment.
The lowest exchange rate is around 1 SGD to around 4.6HKD. This represents a GAIN of around 20% in forex gain. Currently, the exchange rate is so HIGH is probably due to the loose monetary policy in HK. There are probably 2 reasons which could explain why HKD will appreciate.
The first one is that all of us know that the overall monetary policy in HK is quite loose nowadays. Interest rates are low and the government does not want to stifle the economic growth by allowing the currency to appreciate too much. As the signs of the economy stabilizing become more apparent, the government will DEFINITELY have to RAISE interest rates to prevent INFLATION which is another BIG issue for the government now. Property prices are sky-high in HK now and the government will eventually curb it. So when interest rate increases, HKD will GO UP and economy stabilizes.
The second reason which will explain why HKD will go up is probably due to the influence of her big brother, China. China is facing HUGE pressure to allow the yuan to appreciate. Personally, i think that the yuan is undervalued. The value of the yuan is not justified by the booming economic growth of China (although I think that China is purely using its reserves to prop up domestic spending). China wants to ensure that it will always have to edge in exports and the value of the yuan is decisive in this aspect. China faces HUGE INFLATION right now, with property and food prices SHOOTING up high. China must eventually allow the yuan to go up so that the chance of a social unrest (due to lower spending power of the Chinese) will be minimised. Even if it refuses to remove the peg to the USD, I personally reckon that US will step up measures to ensure that goods from China will not have a continued advantage (in terms of pricing) by imposing higher taxes on Chinese goods. This is definitely not what China wants as Chinese exports will not go up and living standard of Chinese will go down due to the value of the yuan. The macroeconomic balance must be achieved across the globe as the other countries have been too passive on China for the past 2 decades, allowing China to run up excessive reserves while they are running huge fiscal debt. Thus, I believe that China will have to bow to pressure eventually to raise the value of the yuan. HK, being closely associated to China will probably follow suit.
These are just some of my personal opinions. Please correct me if I am wrong.
sarsar ( Date: 18-Mar-2010 09:32) Posted:
|
betting BIG on this BABY!!!
hopefully, it will reach at least 0.8 P/B ratio of around HKD 4.20 in a few months time. if it can be listing in HK, i believe that those HK people will snap it up until it is at least 1X P/B ratio. It is unbelievable that a REIT like this with strong financial backing is actually at a HUGE DISCOUNT to its overall net asset value.
here is a list of price/NAV ratio for some of the REITS:
Fortune Reit: 0.64
Ascendas India Trust: 1.177
Ascendas REIT (A-Reit): 1.221
Ascott REIT: 0.996
CDL Hospitality Trust: 1.238
CapitalMall Asia: 1.665
CapitaComm: 0.804
CapitaMall: 1.197
Capitaretail China Trust: 1.090
Frasers Centrepoint Trust: 1.346
K-Reit: 0.742
Parkwaylife REIT: 0.988
Suntec REIT: 0.736
From the list above, comparing the list above, I believe that Fortune REIT has the lowest price/NAV ratio for REITs under the retail category. (i.e. Capitamall Asia, Capitamall, Capitaretail China, Frasers Centrepoint, Suntec reit). The REITs for commercial use like Capitacomm and K-reit are exposed to a pipeline of more office area in the coming year in Singapore. Thus, price may still face a downward pressure.
Comparing Fortune Reit and Suntec Reit, it is quite evident that Fortune has an advantage over the latter as Fortune is proposing a dual listing in HK as i mentioned earlier in my post.
Now, comparing the Debt to Equity Ratio, Fortune Reit has a ratio of 0.366 while Suntec has a ratio of 0.554.
Next comparing the Price to Cash Value, Fortune has a ratio of 10.964 while Suntec has a surprising huge ration of 78.613. This shows ONE IMPORTANT thing. Fortune is in a MUCH stronger financial position. I believe that Suntec has been distributing too much dividend. This is definitely a thumbs down as they might face future problem in servicing their debts.
These are just some of the key points which i noted.
invested in this today
. If I can remember correctly, the net asset value of this counter is HKD 5.23. This means that we are getting a DISCOUNT of around 35% of NAV!!! This REIT has the backing of Cheung Kong Group. I believe that one of Asia's richest man, "Superman" Mr Lee Ka Shing is the head of the group. As we proceed into this year, uncertainty may be prevalent. So i believe that this reit which consists of some of the more diversified tenants will prove to be resilient .What's more is that recently there is an announcement that it is seeking a DUAL LISTING in Hong Kong through a introduction. This will definitely boost its valuation as the valuation in HK is generally HIGHER than in Singapore. With the portfolio based in HK, i believe that the dual listing will most probably be realised. This is definitely a GREAT boost to people holding this counter :D
the link to the announcement of the DUAL LISTING:
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_93223A436A079B77482576DB0010FF22/$file/DualListing-SubmissionSFC-030310.pdf?openelement