Capital Preservation for Value Investor

[CityFarmer]

My niece bought everything online, i see the possibility!

But does your niece go hang out in the Mall with her friends? =)

In the midst hanging out in the Mall, does she spent money in the Mall from all the temptations, from food to cute things to entertainment etc... etc...

My concern is not those younger gen.
It is those middle class who spend the most money.
If given a choice for the same thing but cheaper what would u do?
Thats why i say maybe only the restaurants or cinema survive.
The time when brands like mango,zara,esprite starts doing online...

No doubt brands like mango etc starts doing online, but i don't think it will replace the real retail shop any time soon.

We use to hear that digital shop operators "upgrade" to real retail shop after their success. It indicating that there is still advantages for real retail shop in mall

[Temperament]

Actually any Tan's, Lim's & Lee's company can try a Rights Issue but the Market in general will price the Rights Issue "correctly".
My point is, it is really an opportunity for you to evaluate whether you can make money out of this exercise in the market, regardless of Tan, Lim or Lee's company.
Of course those who has no more capital to subscribe will have their holdings diluted.
Or may be can sell their "NIL PAID RIGHTS" if the Issues is Renounceable.
So that at least you can have some money back upfront.
In fact there are so many more possible actions to take or consider.

[BlackCat]

Regarding online shopping, some interesting articles about Amazon:
- installing lockers at 7-11 for pickup.
- building infrastructure for same day delivery.

I think there are only a few things we buy where we need to see or hold them first. Most things can be bought online.

I'll be looking at Amazon in a few months...

[HitandRun]

Reality check:

Latest quarter: Amazon Sales:12.8B Walmart Sales:113.5B

It might take a while before Amazon catches up and even longer while for Walmart to give up their retail space.....

[Some-one]

I did think about the trend of people going more and more online to buy things but ultimately, my conclusion is that I don't think online stores would replace brick and mortar stores anytime in the future. Humans are social creature. Imagine a time when there are no more malls in the world and everyone starts to buy online. The world would be a very cold place to be. How would you feel? Yes, people would probably windows shop more and the rental of the stores may hit a plateau as more people turns online, but there would still be people who prefer the touch and feel of their favourite items. There would still be friends meeting each other to socialise, talk about business, couples bringing their kids out for lunch. It's the feel and the human thing that would never go away unless we become robots with no emotions.

[Temperament]

Thanks d.o.g. Another classic post. I will save and keep!

Your examples show how rights issues are in general bad for the investor. In theory unitholders can vote against the rights issues, but in reality the major stakeholders are related parties (parent companies like Capitaland) so minorities will be outvoted anyway. Hmmm. Maybe I need to rethink my REIT strategy. Darn!

I think you did not fully understand what d.o.g means.

rights issues are not in general bad for investors. but rights issues for debt repayment usually are in general not good. rights issues for steady income generation might not be good.

rights issues for good expansion can be welcomed by growth investors. be realistic, there are only a few ways for a company to raise money for expansion, rights issue is fairer to every shareholders than placement.

To add-on

Another important point referred by d.o.g. is "unitholders did OK as measured by price appreciation".

REITs DPU as regular income source, then it will turn out to be a disappointment. But REITs as capital appreciation, probably might not be a bad idea.

Can not agree more.
But you must B/S/B/S.....
If not most probably paper profit only or some of the times even paper loss. It looks like i am not talking about value investing but "Rojak Investing".
But hey even value investing look at when you should balance your portfolio at the time when some of your holdings are "too expensive" by your personal's valuing.
If not hopefully all of your holdings are like Apples or Pepsi or Big Mac.
Hold forever after buying.
Even then, no one can guarantee these companies will be "growing & growing" and last another 100 years.

---

http://www.bloomberg.com/news/2012-09-04...-asia.html

So is it too expensive or still cheap to buy Singapore Reits?
Alas! i have sold my Reits too early.
May be there are a few you still can considered.
"Caveat Emptor".

NB:
Anyone can make money in the market except "PIGS" got slaughtered.
i admit at times i become a little too "Piggy"
Have you been lately?

[swakoo]

IMHO, there are REITs and there are REITs. And there is timing....

Let's take a look at how the reits discussed and a few others have performed over the past 10 years relative to the STI - see chart below.

[Image: z?s=C38U.SI&t=my&q=l&l=off&z=l&c=J69U.SI...&region=US]

The purple line is the STI.

The 3 lines below the STI are the 3 reits discussed earlier that have issued dilutive renounceable rights, with serial dilutive rights issuer Kreit (red line) the worst performer.

2 other reits however have well outperformed the STI. FCT (green line) has done 2 yield accretive placements over the past 5 years (since it's IPO). Areit (yellow line) has issued a number of yield accretive rights over the past 10 years. When the placements or rights have been yield accretive, value does not seem to have been destroyed but have instead been enhanced.

[Temperament]

IMHO, there are REITs and there are REITs. And there is timing....

Let's take a look at how the reits discussed and a few others have performed over the past 10 years relative to the STI - see chart below.

[Image: z?s=C38U.SI&t=my&q=l&l=off&z=l&c=J69U.SI...&region=US]

The purple line is the STI.

The 3 lines below the STI are the 3 reits discussed earlier that have issued dilutive renounceable rights, with serial dilutive rights issuer Kreit (red line) the worst performer.

2 other reits however have well outperformed the STI. FCT (green line) has done 2 yield accretive placements over the past 5 years (since it's IPO). Areit (yellow line) has issued a number of yield accretive rights over the past 10 years. When the placements or rights have been yield accretive, value does not seem to have been destroyed but have instead been enhanced.

Ha! Ha!
Logical, logical.
Yield accretive should be why we subscribe to a Rights Issue, regardless REITS or other companies.
But to tell the truth i was like a "Goo Kia" taking up the rights of CMT, CCT because the premiums were just too attractive during the GFC.
i was fortunate, because people still believe in these Reits down the road.
But i sold my KREITS and never buy again.
If i did, at the "right timing", i still will make some money.
Sorry, if you think i am a "Rojak Investor", my apology.
Hey, as long as you survive the market and even prosper, who says i am not a "value seeking investor"?
Amen.

[gutman]

Bloomberg : Singapore REITs Yield World’s Best Returns: Southeast Asia

http://www.bloomberg.com/news/2012-09-04...-asia.html

[money]

Interesting, i can see that many people are out of reits. Same for me. My 2nd last one was AIMS. My last one was First Reit. but with worldwide interest rates so low these days, i have difficulties trying to find yield.

Taken a look at hyflux preference shares but found it scary, they can stop distribution anytime. Taken a look at genting preference shares, dont think they will stop distribution but getting worried about losing capital when interest rates rise. bernarke seriously screws up the world