Current Price on 5th March 2011 = $0.51
- Current Yield = 9.36%
- Price-to-book Ratio = 0.84
- Assets per unit = $0.946
- Debt per unit = $0.339
- Gearing = 35.8%
The price of Cambridge has dropped since the crisis in Libya. Someone has told me before that the price to enter is at $0.50 which I agree. With a yield of 9.36% at current price and a discount to NAV, I think we have a good buy here.
I think the price will hover between $0.50 - $0.60. The reason is that $0.50 is a tested support price level so if I can try to enter at this price, I am confident that it will not drop further. However, I think it will not move beyond NAV price. According to my strategy, anything beyond NAV price is a premium REIT which is not favourable. Unless there is substantial evidence that the valuation will move further up, I think I will look for other opportunities.
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