The share price of Mapletree Logistics Trust (SGX:M44U) has taken a beating in recent weeks and I decided that it is time to initiate a long term position for this high quality logistics Reit riding on the booming waves of e-commerce. Also, to complete the quadruple Mapletree collection.
While technically MLT's share price may correct further below 2, I would then be happy to slowly accumulate more in future. Practically, I am practising the commonly used dollar-cost averaging strategy to build up my investment portfolio.
I have also received the "free" shares of Sembcorp Marine (SGX: S51) demerged from Sembcorp Industries (SGX: U96) today.
As I have 2400 SCI, based on the payout ratio of 4.911 shares to each SCI share, I got 11,786 shares of SMM credited to my CDP account.
There is an ongoing $5 commission promotion by Phillips Capital POEMS for odd lots trading in Sembcorp Marine shares from 11 Sep to 9 Oct. I decided to round up my SMM to the nearest 100 even though the commission is more than the shares value because I wanted to have the flexibility to sell off all my SMM shares entirely if I decide to do so in future.
I have shared my thoughts on the demerger of SMM from SCI previously.
I gauged a fair value of SCI to be around $2. After the demerger, one would be able to get around $2.01 of value from the SCI share price of $1.18 and $0.83 from the 4.911 SMM shares at $0.170 at the time of writing. It is not a bad deal if one managed to keep SCI through the end of this demerger process as SCI was only closed trading at $1.91 on the cum entitlement day.
I look forward to other upcoming corporate actions affecting my portfolio - Merger between Capitamall Trust and Capitaland Commercial Trust, and the
Equity Fund Raising by Frasers Centrepoint Trust to acquire its remaining stakes in AsiaRetail Fund.
While local stock market remain weak and sluggish, I still intend to continue building up my investments slowly and steadily for the rest of 2020.
Thanks for reading.
With love & peace,
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