Saturday 2 May 2015

Portfolio Update - April 2015

*As of 30 April 2015

No. of Shares
Average Price (SGD)
Total Capital Invested (SGD)
Accordia Golf Trust
SembCorp Industries
Cash Reserves and Equivalents
Total SGD

Total Invested Capital = $22,014.88

Total Expected Dividends/month = $132.41

Average Dividend Yield = 7.22%

As you might have noticed, I have sold off Cache Logistics Trust as it has run up in price, reaching close to the previous resistance levels for the stock. I decided to take the profits off the table and consolidate my warchest back to at least 50% of my total net wealth.

REITs remain a challenging sector, with the impending interest rate hikes from the Fed, the cost of running a REIT would only go in one direction now, and that is up. The interesting thing is, I have never held Cache Logistics Trust for more than 2 months and have traded it approximately almost 3-4 times a year ever since the second half of 2013, when the taper tantrum had just began.

So why Cache Logistics Trust and not other REITs? The idea for me is to look for REITs with a clear band of volatility where it is possible to buy in close or around the supports and selling closer to resistances. Be mindful that this band of gyrations do move with time and we have to be consistently monitoring the movement of the prices. The volatility has allowed for me to have much better prices of entry and exit as opposed to the buy and hold period of pre-taper tantrum. Cache Logistics Trust also has a high dividend yield payout which allows for greater gyration of movements during the results announcement period for REITs. There are much better yielding REITs than Cache Logistics, but the others had either too little movement or had poor business performances which limits the upside we can achieve. Do note that I had monitored the stock for quite some time before trading them to observe the patterns before going in with real cash, so I suggest perhaps trading with virtual funds before going in for real.

And of course, risk management is always important in any trade. Strict risk control, discipline and nimbleness are some of the many attributes a successful trader needs to possess. Good luck!

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