Currently, I'm looking to cut more REITs from my REITs watchlist and probably add 1-2 companies into my non-REIT watchlist. Progress is rather slow (I'm only 58.5% of the way T_T).
- Buy M1 at 1.915
- Reasons
- Valuations are near 2008 crisis levels as well as lower than the usual high range, Dividend Yield at about 8% (Crisis ~10.89%), P/CF at 7.5x (Crisis ~4.3x)
- Considering the 4th Telco, even if profits are slashed by about 15-20%, we are looking about 6% yield which I feel I am comfortable with (REIT yield on a non-REIT blue chip :P)
- Daily chart shows reducing selling momentum on the fisher transform (as well as a potential divergence), reducing volume, weak and sickly candlesticks as seen from the smaller bars (the last one has a shadow in the opposite direction of the trend). My initial target was 1.9, but it seems rather hard to touch, so I adjusted to 1.915 since it is already a bargain FA wise.
- If it drops much lower to maybe 1.7-1.8 (2008 levels) I might add more too.
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| M1 TA |
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| M1 FA |
I added a new variable, Gross Profits to Assets based on the "Profitable Dividend Yield" Strategy from Dr Wai Mun Fong (NUS), will see if it helps.
At the same time, I am considering to let go the smaller REITs (especially industrials) I have owned (AIMS, Soilbuild, Mapletree Ind), to reduce my heavy weightage of REITs as well as I kinda feel the larger REITs have better economies of scale and also makes AEI and acquisitions easier.
Well, that's all for my money right now.
For those of you who wanna see more information, my SGX portfolio is on SGXCafe too! You can find it here.
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