A Whole Lotta Selling

Selling Wholesale

I guess the EPF, Khazanah and all those pension funds are liquidating their holdings in blue chips to hold on to their new acquisition of FGV shares.

This is actually quite a concern because liquidating  defensive stocks like TM, Digi, BAT and also banking shares may not be a wise move even though opportunities may present itself to enter these stocks again at another time. There could be a relative loss of dividends or even appreciation as Wall Street has broken its losing streak to rise sharply on Friday last.

Wanton Seller

The only interesting thing I found was that EPF is picking up YTL Corp shares

What gives?

Life is like that

So cherish life.

Enjoy your youth, courting days and family life.

Live each day as if it is your last and you will savour the best that God has given you before you leave earth once more.

So cherish and enjoy the company of loved ones before the material world spin circles around us and we reel from its treacherous impact.

Twinkle,Twinkle Little Stareit

Star Dividends!

It has hardly moved from its IPO price of  98 sen.

Today it is straddling at the RM1.07 to RM1.08 range.

This is one hospitality REIT worth looking at as it has more properties both in the country and overseas in Japan and Australia.

The latest result is reassuring to the unit holders.

This is the latest report.

Starhill Real Estate Investment Trust (Starhill REIT) has declared a final income distribution of 3.6247 sen per unit for the six-month period ended June 30 2012, amounting to RM48.0 million.

Combined with the interim dividend of 4.0112 sen per unit paid for the six months ended 31 December 2011, Starhill REIT’s total income distribution of the financial year ended 30 June 2012 stands at 7.6359 per unit, compared to 6.4855 sen per unit last year. This represents a yield of 7.2% per annum based on Starhill REIT’s 5-day volume weighted average unit price of RM1.06.

 Francis Yeoh , CEO of Pintar Projek Sdn Bhd, which is the manager of Starhill REIT, said, “The completion this financial year of the rebranding exercise to transform the Trust into a pure-play hospitality REIT marks a turning point. Starhill REIT’s property portfolio has now been fully rationalised to focus on prime, yield-accretive hotel and hospitality-related assets. This has enabled us to achieve a 32% increase in the total income distribution from the Trust to RM101.1 million, compared to RM76.5 million last year, and a 17.7% increase in the distribution per unit”.

Under the rationalisation exercise, Starhill REIT acquired the Pangkor Laut, Tanjong Jara and Cameron Highlands resorts, the Vistana chain of hotels, The Ritz-Carlton, Kuala Lumpur, the remainder of The Residences at The Ritz-Carlton, Kuala Lumpur not already owned by the Trust, as well as the Hilton Niseko in Japan, the Trust’s first international acquisition. 

Subsequently, in June 2012, Starhill REIT also entered into agreements to acquire the Sydney Harbour Marriott Hotel, Brisbane Marriott Hotel and Melbourne Marriott Hotel in Australia for a total purchase consideration of AUD415 million.

The book closure and payment dates for the final income distribution are 3 August 2012 and 28 August 2012, respectively.

Wahlau... good one, man

BJF-Out of Tobruk

Joy, Mercy and Grace

From the looks of it, there seems to be some buyers this morning.

Time to get out some more.

So I am cashing out and taking losses along the way.

Will the buying sustain?

Friday is seldom a seller's day and buyers can be brutally 'bargainy' and pare down prices like a bear in heat.

Right now,the pattern has set in with buyer at RM 1.00 and a seller at RM1.03.

Though the bids are wide, some 2,471 lots have been done raising up BJF by 6 sen.

Methink forces are at work to shore up the prices when the OR gets traded.

At today's price an OR should be worth 1.03 minus 65 sen which is 38 sen. Buy in volume and brokerage is cheap.

On average, a person who takes up the rights should stand to gain somewhere between 35 sen to 50 sen hopefully.

Then we would want to see how the warrants trade as well when we know the details of conversion and duration to exercise.

It will be noon close in 2 minutes' time. BJF closed at RM1.03.

I will continue looking at this counter until 4 pm then I need to go out to Bangsar again on business.

Looks like it ended up 7 sen at RM1.04 giving hope for the OR to trade more positively on 17 July 2012.

BJF: An Unfinished Journey

Salving despondency?

Truth be told.

I am disappointed at the price of  BJF as it opened ex-all. It finished half a sen up at 97 sen on a volume of 6,041 lots done.

Mostly, I was sore with myself for reading the signals not too correctly. A lot of things have changed when I played counters with impending rights issue and it gets more confused when they priced in a free warrant.

Not so bad-lah

So, I spoke to my remisier. What gives, I asked her.

Then, she explained to me that these days rights are  also adjusted.

For BJF, the last price done was RM1.43. The impending rights are priced at RM650. If you have paid RM1,430 and need to pay RM650 again, then the total outlay will be RM2,080. So the ex price for BJF should be RM1.04.

However, the price ex at 96.5 sen, short of  7.5 sen.

So where did that 7.5 sen go?

According to my remisier it could be priced in the Offer of Rights (OR) which will trade from 17 July until 23 July. After that if you keep the OR, you need to  get a bank draft and buy into your entitlements.

The question is everyone who has bought the share above 96.5 sen seems to have lost a bundle has lost out to those who did not take the rights and warrants.

Can that be true?

Let us see the revelation in days to come.

One thing I am sure, the new rights issue will be traded pari passu the current ex price. At today's price, you can only gain 32 sen per lot. So hopefully it will go up after all those weak sellers depart.

Then there is the question of the warrants. By now, the details should be out. We would want to know the conversion price and period for conversion. May be it will be on the Bursa site soon and we can sell these for good returns too.

The game has just started and so do not be too despondent or defeatist.

It is always darkest before the dawn.

We still have great hopes in the OR, the traded warrants and the eventual rights issue.

If BJF prices stay moribund, not many will take the rights especially those with fractions.

My SOP will be to apply for excess to enhance my potential returns. This may convert my loss to profit.

Fighting back, bugallo

By then, my wounds would be richly healed! Hopefully....

Ex-Day for BJFoods

I must confessed that I need to learn from this market. As I know from long ago,rights issue are not discounted on listing ex.

Those clowns must have instituted new trading rules.

This morning, I found out from the stock news of BJF that its new maximum trading price is RM1.26 and its new adjusted minimum price is  66.5 sen.

I am trying to fathom what is the formula.

At 1.43 closing yesterday, why should the price now be adjusted to some 17 sen lower ?

Is this indicative of what will be the trading of the rights document on 17 July? So it  could be the lowest trading price of that issue; and possibly the warrant document trading price is now computed in as well.

Let us observe the trading pattern this morning.

BJF: Normandy Assault or Trapped in Tobruk?

Seattle Export

In moments, BJF starts trading on its last legs before it goes ex-all tomorrow.

My thoughts before trading commence.

So,the usual pattern has appeared with seller bids at RM1.44 and buyer bids at the overnight level of RM1.41. Interesting tug of war. Are the 2 sellers out fishing and reluctant to give up their bidding ground? Also, are the 2 buyers seeking 70 lots not in desperation too.

It may be a long while before a deal can be struck, I surmised.

No, I was wrong. the sellers got off their high horse and gave in to the buyers. some 215 lots are now done.

The seller now retrace his chess move back to RM1.44 with an offer of 170 lots.

The buyers are sticking at RM1.41 with a bid to buy 95 lots.

Let us look at other details on the board on BJF.

At the RM1.46 and RM1.47 range, there are about 746 lots to be disposed off.

At the buyers's end, there are 670 lots to be bought ranging from RM1.35 to RM1.41.

Now,at 9.41am, the stock is trading on a higher than usual volume of 9723 lots done with a humongous lot done at 5,000. The selling bid is RM1.45 at386 lots while the buyers are bidding at RM1.44 for 153 lots.

If there is indeed traction, then we are out of Tobruk at least.

I will be off to a meeting soon and will post when I come home at lunch-time or so.

Will continue to track Starbucks then.

Afternoon trading was rather brisk pushing BJF to a high of RM1.51 before weak sellers sell down the price to RM1.43 on the last trading seconds.

In life, this matters. A time and place where the axis meets and things happen to you. Oftentimes, you take advantage of this axis for advantage.

I do hope those who bought into BJF will see a great trading session for BJF tomorrow when it goes ex.

So, there was an assault on Normandy but the army of buyers were forced to retreat just outside the wall of Tobruk.

So keep your fingers crossed for tomorrow.

Prayers and blessings as always. Amen.