Tuesday, December 27, 2016

My Roller-coaster Ride with Sabana REIT

Before I start, it will be good to note that I am a noob at REIT. I have not come up with a method of how to value REIT. So read this with a pinch of salt...

Prior to Sabana REIT recent rights issue, I have always kept a watch on it. Although I always understand how lousy the Sabana REIT management team is, I still feel there is always a price for Sabana REIT. 

Furthermore, I am always trying to be contrarian. Thus, with Sabana REIT having so many empty units, dividend will shoot up if part of these empty units were rented out.

Thus, when Sabana REIT announced the rights issue, I decided to purchase some of its "mother shares" (Actual Sabana REIT shares, not the right issue shares). This is the start of my roller-coaster ride...

With the confirmation of my purchase of the mother shares, I started to feel nervous as I saw the price keep dropping. 

Then stupidly, I bought more at the lower price to average down. 


Soon, the news and comments on Sabana REIT started to flood the internet. After reading these posts from Investment Moats and BullytheBear, in addition to all the negativity on facebook and InvestingNote, my heart took over. I reduced my Sabana REIT holdings at an EVEN LOWER PRICE


This was the point where I started to ignore all the news on Sabana REIT and then I saw the price stabilizing at a HIGHER PRICE THAT I SOLD.
At this point, I have no idea whether I should be sad or happy. Nevertheless, I decided to wait till my CDP account being credited with Sabana REIT (the mother shares), so that I can go and apply the rights issue immediately.

On Saturday, I happily went to the ATM and tried applying for the rights! Then, this appears.

I got the shock of my life and started to message my broker (Yes, on Christmas Eve, Thanks for replying!) as well as blasting my questions on InvestingNote.

Luckily, bgting replied my questions on InvestingNote and gave me all the information I believe I need from now till the end of rights issue. THANK YOU bgting!


With that, I decided I will just rest and relax during this holiday period and ignore the stock market.

In conclusion, I knew this was a bet and I might need to pay some school fees. But after this incident, I will have learnt enough to understand the effects of rights issue and emotional mental consideration of this journey. 

Do note that I have yet to talk about any of my intended strategies of buying of Sabana REIT and its rights issue. This is because I am not confident of this effectiveness and sharing on an "assumed" strategy may not be ethical at this point in time. Thus, I hope you will understand.

Nevertheless, after this, I went on to spent more money on this:

and downloaded this:

This will be my first ever console and the 1st game I downloaded on my handphone since June.

I decided I need some time on the sidelines to enjoy the holiday season a little.

With that, I wish all the readers, a belated Merry Christmas and Happy New Year!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

4 comments:

  1. 1)bought mother share after annoucement
    2) average down mother share after announcement
    3) sold some after that and took some loss
    And have some remaining am i right?
    Just curious which broker did u use ?

    ReplyDelete
    Replies
    1. Hi Sgdividends,

      Thanks for stopping by.

      Yup. I still have some remaining.

      I use UOB Kay hian. May I know if that is a concern?

      Regards,
      TUB

      Delete
  2. Not a concern but the minimum comm is pretty high for UOB kayhian, was wondering if you trade rights whether its worth it..unless you bought a truck load of mother share

    ReplyDelete
    Replies
    1. The thing is I don't intend to trade rights. Or rather, i will just buy more and more rights.

      Delete