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Thursday, October 15, 2020

Applied for Frasers Centrepoint Trust Preferential Offering Shares

I initiated a small long-term position in Frasers Centrepoint Trust (SGX: J69U) in Aug 2020 using my daily expense funds.

It was not part of my plan but the temptation of owning a stake in resilient sub-urban malls before phase 3 and subsequent recovery of the economy was too strong to resist. 

Coincidentally, the price I nibbled is $2.34 which is the same as the preferential offering price. $2.34 is a fair price as it is near to the book value of FCT and previous preferential offering price of $2.35 in Jun 2019. 

I just paid up for my entitlement and some excess of the preferential offering shares at the ATM to double up my small investment in FCT. I believe that its share price will experience further weakness and possibly drop further before making a strong wave up based on catalysts of either solid financial results or further improvements in the pandemic situation.


I will slowly and steadily add on to my positions in FCT at close to its book value whenever I have the opportunity and spare cash in future. 

FCT is well positioned for the economy recovery and is a long term resilient sub-urban mall play. Short term traders and speculators will be flushed off the boat and get burnt badly while long term investors will be handsomely paid off with their loyalty and patience.

Thanks for reading.

With love & peace,
Qiongster


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4 comments:

  1. CompoundingDividendxDividend9:05 AM

    Nice :)

    We got the same buy price @ $2.34

    https://compoundingdividendxdividend.blogspot.com/2020/10/added-frasers-centrepoint-trust.html

    ReplyDelete
  2. Qiongster9:33 AM

    I bought on 7 Aug when it drop below last yr's PO price $2.35 which is this yr's PP price

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  3. Eye of the Storm11:03 AM

    Hi,

    Thanks for sharing. I subscribed the rights and also applied excess rights but yesterday's closing is below the rights price. Strong company just that the management could have done better to get a better placement price; also rather than coming up with right issue.

    ReplyDelete
    Replies
    1. Qiongster9:57 PM

      There is no good or bad placement price as the market is always driven by economic forces of demand and supply. The share price of FCT plunges to as low as 1.55 in Apr 2020. 1.55 is bad for fearful and weak investors but good got opportunists on the sidelines and confident investors who add. What is a good price for some may be bad for others. As long as we know what we are investing into, we should not be too concerned about the market price of a good asset.

      Delete