(28-05-2015, 01:51 PM)Contrarian Wrote: > There is nothing wrong to practise technical tactic to archive your investment objective
I agree. I will be first to admit I also look at the charts.
For FCL, the retail float (only 12% amongst the top 20 and retail shareholders) is very low.
What you need is just some consistent catalysts and you will see the price shoot up in due course. They are probably:
1. New Industrial REIT
2. More assets sold to the REIT
3. Placement sale by Charoen at higher price
4. More dividend payout
FCL is an unfolding multi-year drama serial.
FCL has already mentioned to the public that they may incept a new ind REIT to recycled ALZ's matured and ready Aussie Ind Prop. In addition, they have mentioned many times over that ALZ's ind prop experience can be exported to South East Asian countries when they were previously not explored for whatever reasons under Capland. I personally think that Towkay's Thai base will dovetail nicely into the export of such expertise in time to come.
Assets are already being progressively sold to listed suite of REITs. However due to high cost base of these assets, the profits derived from recycling into REITs may not be as high as those seen during Capland and Kepland's days.
The difference I see in FCL - the maintenance of the pipeline of assets so that there is an adequate supply of assets to be recycled.
I think when time and cashflows permits, div payout will be raised so as to enhance the attraction of FCL.
Until then, Towkay and his team will labour hard to convince the market that FCL is a viable model against bigger incumbents like Capland even without their govt linked pedigree. Such execution will eventually be reflected in share price and enable his companies to dilute their interests at the right price and right time.
Vested
GG