Current Price on 9th Feb 2012 = $0.795
- Current Yield = 7.56%
- Price-to-book Ratio = 0.576
- Assets per unit = $2.734
- Debt per unit = $1.352
- Gearing = 49.5% (considering CPPU as liabilities)
- Secured NAV = $0.193
FCOT has updated their results this month which shows a higher DPU and therefore a higher yield. Its assets and debts remain the same and I am still considering CPPU as liabilities.
This year will be a critical year as they will need to refinance these CPPUs. These CPPUs have a conversion price at $1.18 which nobody wants. Therefore, they will opt to receive cash and buy shares on the market. Thus, I am still expecting a cash call from FCOT to reduce gearing level.
I am also awaiting news about their refinancing efforts which I am expecting interest rates to be lower, thus boosting DPU.
Finally a surprise will be the sale of Keypoint at valuation price which will boost its trading price. It can also be used to redeem these CPPUs.
I have a total of 20,000 shares in anticipation of all those stated above even through its yield is below 8%. Will be looking at this closely
This year will be a critical year as they will need to refinance these CPPUs. These CPPUs have a conversion price at $1.18 which nobody wants. Therefore, they will opt to receive cash and buy shares on the market. Thus, I am still expecting a cash call from FCOT to reduce gearing level.
I am also awaiting news about their refinancing efforts which I am expecting interest rates to be lower, thus boosting DPU.
Finally a surprise will be the sale of Keypoint at valuation price which will boost its trading price. It can also be used to redeem these CPPUs.
I have a total of 20,000 shares in anticipation of all those stated above even through its yield is below 8%. Will be looking at this closely
Impressive yield and seems to be good stock to have in someones portfolio. Business Plan Writers will definitely recommend it for short run.
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