Ascott   

Ascott

Hi all, I had vested in this counter.. why is Ascott price keep dropping but the Ascott Reit is rising.. Will the drop trend continue.. or will it be up together with the Reit.. anyone to advise..

 

Correction, with 7.14cts DPU, seem ok to me, but like u say the issue price would be important to determine your returns. cheers

 

shplayer,

thanks for the info to my question, as I am vested in this counter, I am prepared to put up more fund for the preferential shares, at 7++% seem like a good bet. On track record with this management, they seem to be delivering. I don't mind putting my trust on them. I hope my retirement nest can grow.

 

alexmay,

Oh, you mean the proposed preferential rights for ART.



Usually, when the REIT needs to raise capital for expansion, it will issue new shares. A portion (in this case 1 for 10) will be allocated as preferential 'rights' to existing REIT holders. There is also usually a discount in price for the existing shareholders......from past experience, will be about 10% disc from the price to other retail investors.



As to whether you should take up the 'preferential rights', you need to assess if it meets your investment criteria. ART say post issue...DPU  for 2007 will be 7.14cts. However, they have not confirmed the issue price of the new ART.

 

Hi shplayer, thanks for the expeditious reply, as for the new preferential  share issue, I was refering to the raising of 199mil to fund some new acquisition, this was annonced earlier, should one subscribe?

 

alexmay,



No, I don't think ART will offer Ascott Group shareholders discounted ART share in the near future.



They did it last year as a one off exercise as a reward to the Ascott Gp share holders and also to promote the subscription of the new launch ART.

 

I was looking at it innocently as a reward to the long term investor. Care to comment otherwise?   I am fairly new in this arena. Ascott will be issuing more preferential shares to mother share holders at discounted price does it mean its not so good? Pse comment thks.

 

Cd is 6 cts (one tier)....which is a yield of 3.57% based on today's price of 1.68. I think it will find support at around this level.......baring any major upheavals in the market.



Sporegal,



from the charts, Chaikin seems to have hit rock bottom, whereas A/ D is still high. How do you inteprete this?



Thanks

 

Caution... this may be topping out soon.

 

Alexmay,

No prob.



But, as you said, the issue price of 68cts is special to mother share Shareholders.  



Don't you think it was abit odd to ask shareholders of Ascott Group to buy ART (albeit at a discount) for something they already own? ...........Just something to think about.

 

shplayer

Sorry I take so long to respond was out of town, 9.3% was based on ART issue price to shareholder for subscription at 0.68cts. This was on the brochure.

 

Vested, I think fundalmentally it is sound with a good biz concept, big investment coming, overall world properties are doing OK. I am in for medium long term. Analyst put tgt are $2.25. Should accumulate on dips below $1.70, which I am planning to do. 

 

hm. ascott's charts are confused; volume shifts a lot between days, a sign of counter is being manipulated. pls trade with care yea....appears to be crossing a sell signal soon. likely profit taking since it has been up since late sept.

 

A lot of resistance at $1.71. Once it cleared, it went to close at $1.67. Still,  I have faith in this baby of Capitaland.

 

drop 9cts  today.. good time to go in?? any experts to advise?

 

Great! Management strategy doing very well, and I think it will be another good year for them.

 

Ascott posted results....eps 9.5cts (verses my est of 9.3cts...see my post of  8 Jan). My est 98% accurate.

Divident 6cts one tier TE.

 

alexmay,

The estimated 07 DPY for ART is 7.14cts....based on today's close of $1.75, the yield is 4.08%.

How did you derive 9.3% returns?

 

Ascott has moved all time high at $1.72 Hope the EGM on 23Feb will give more upside. He.... He.....

 

First time trying to attach a link, I hope you it can be viewed. Info on how unit holders can benefit at preferential prices.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_01C9FF1A1C97A0EA48257272004B875A/$file/ART_Announcement_Notice_EGM.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_01C9FF1A1C97A0EA48257272004B875A/$file/ART_News_Release_EGM.pdf?openelement