- Price = $0.205 (TERP based on $0.22)
- Yield = 10.15%
- Price to book ratio = 0.789
- Asset per unit = $0.401
- Debt per unit = $0.141
- Gearing = 35.2%
This is a yield-accretive acquisition which increases the yield to 10.15% according to current price of $0.22. The only drawback is that there is no more secured NAV as it is used as a collateral to a $280M loan.
According to my criteria, AIMSAMP Capital REIT still fits nicely with low gearing, high yield, discounted price-to-book ratio. I felt that it is time to invest in AIMSAMP Capital REIT so I have made an investment of 25,000 shares today. Moreover, I will subscribe to its rights issue and hopefully be able to subscribe to some excess units.
Looking at my current portfolio, I might have over-diversified. Therefore, I am looking at consolidating my portfolio within the next 6 months. Of course, if you have some advice, please do let me know and we can discuss about it. Many thanks in advance.
can you advise on how to apply for the rights?
is it a good price?
my advice is to stay away from this counter.ReplyDelete
Whenever there's a rights issue, the price is put under pressure by arbitrages between the shares and the rights.
Buy the rights on their last trading day, if they quote with a substantial discount.
Further details will be released at a later date by AIMS AMP. Just prepare your money in a bank account because we are able to subscribe into rights issue thru ATM. The price is good enough considering the recent rise in Cambridge makes AIMS AMP Capital relatively more attractive. However, you got to calculate your own TERP to determine the average price that you have purchased.
It depends on situations. Notice my analysis is based on TERP price. Moreover, it has risen by 5%.
Take it as an opportunity to invest at a discount, so that you are able to earn more dividends (which are recurring income)...
May I know how you calculate the TERP?
Also, how to apply for the rights and is it the price is not fixed?
You may refer to more details from the SGX website...ReplyDelete