Current Price on 15th March 2011 = $0.495 (It will be $0.487 after adjustment for rights)
- Current Yield = 10.42%
- Price-to-book Ratio = 0.829
- Assets per unit = $0.938
- Debt per unit = $0.352 (including current liabilities)
- Gearing = 37.5%
Japan earthquake has affected the stock markets and Cambridge is one of them. It has dropped below $0.50 level which I thought was the support/lowest level it can go. These are exceptional cases.
Anyway, Cambridge has announced for rights issue to fund acquisition which I felt that it was favourable. It improves the yield to current level of 10.42% (which is now better than AIMSAMP REIT), and reduces the NAV only by a small amount (from $0.607 - $0.587). My rationale is this. As long as the acquisition is yield-accretive, it is a good deal and the manager is acting in the interest of us (unitholders).
I will apply for the maximum that I am allocated for (when it comes) and will also apply for excess rights (Another good chance to earn a bit more).