Wednesday, June 29, 2016

Killed my golden goose - Capitaland Mall Trust

CMT is always my favourite golden goose in my portfolio. It had been hovering around $2 - $2.20 range for the past few month. I killed it this morning with a sell price of $2.15. I believe the price will go higher given that its going into CD status next month.  

Reasons for killing:
1) The capital gain is enough to cover my next 2 years of dividends
2) The PB ratio is at 1.16 currently (Abit on the high side given there is good reits PB is under 1)
3) Funan contributed 4.3% of the Total Gross Revenue in FY 2015. With the closing of Funan on 30th Jun, expecting the Total Gross Revenue to drop around 2% in 2H16.
4) The price went up sharply (7.77%) within 3 days. Whatever goes up must come down given the #BRExit, any slight negative news will cause the price to tumble back down.
5) Too many negative news regard to empty shopping malls in Singapore.
For example in today Straits Time, 1 Market by Chef Wan closes its door (Plaza Sing).

So here I am, camping at the sideline currently hoping to buy back CMT real soon with a Target price at $1.9X

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