Remember that we are investors and not social welfares. If we feel other counters give better returns we should have the option to switch. Any reason why I should stick with it through thick and thin ?.
EmployeeInvestor... yes, I did rotate almost all of my share out of Hektar already now. If I feel they are better then I may come back later. I have no sentiments on any REITs. If they good later I will come back later. I cannot see much of it at this moment. At this moment I think their property is not that good too and online shopping will dent this sector. For examples when I buy into YTL they are at 78 to 80 cts region. I sold my Hektar at 56-57 cts region. With the reopening of the economy, I am more on the lookout for other REITs that should be able to capitalised on this rather than Hektar at this moment. But it is up to you. Getting less than 2-3% on Hektar is not my cup of tea.
I think for REITS investment, capital gain is not the thing one should look for. I think it is the wrong way of investing in REIts. You should look at the dividend first then capital gain and Hektar is not one in my radar now with their dividend payment. Investing in REITS is on how to maximise your dividend first and capital gain is a bonus next. So the share price gain or not becomes a secondary issue. For me this is how i manage my REITs. I buy say this YTLREITS at 7% dividend, which I say is very good. I match equal quantity under my margin. Margin I only pay 3.43 % now ie BLR minus 2%. With this I effectively make 7%+7%-3.5%= 10.5% dividend on my investment. I think this return is good and I always live happy just on these simple practice. even on my EPF I do this and my yearly net gain is always 1 or 2% higher than what is declared. In summary this is called leverages.
This is just my method of investing and by no means mean to influence anyone to follow. The final decision is on you and you may have your own way of investing.
Hektar will need to pay dividend by early 2022 to avoid being taxed. Looking at the current profit, dividend should be around 3 sen. If you buy at the current price, it is quite a decent yield. Should start accumulating now.
NatsukoMishima . Since the NTA of the company is still above 1 ringgit. There is only 1 way. Fire the whole management team. Sell all the whole asset etc etc and distribute the money back to all the share holders. even if 80% of the value is OK with me.
The cash flow is in dire position....the company is needed cash for survival. The prospect of revenue to sustain at the current level is deemed as impossible with the omicron varient in place...
45.5 cents of offered price is a reflection of how desperate the company was
Well, we don't know. Shares with minimum intrinsic value of RM1 sold at RM0.45. This really shows how poor the cash flow is. I agree with kasinathan that most of the money owned by Hektar is just assets now.
As at Q3 2021, Hektar has already made Earnings Per Unit of RM0.0206. If we include Q4, maybe can go to RM0.03 per unit. They will need go declare full year dividend early next year, if not Hektar needs to pay corporate tax instead. We are looking at RM0.027-0.03.
If you buy at the current price, keep it until dividend payment maybe in Feb/March, in 2/3 months’ time you will already get at least 5%. Not too bad right?
Bro, you can buy more at the current cheap price to average down your cost. I am quite sure the price will recover in 2022, people will start going out again and retail will improve.
I think it is standard practice to offer placement at a discount of up to 10% as an incentive to raise the money. If you are a placee, of course you are expecting a discount before you take up.
So far only 6.3 mil units of approved 23 mil units have been taken up. I think if you are interested to take up the placement at a cheaper price, maybe you can contact the IB and tell them you are interested. I am sure they are keen, they can get fees out of it.
The recent share price maneuver also made me worry as hell. At least there is still hope seeing Singapore REIT (Frasers) still having significant shares in Hektar. If it also no confident in Hektar, then we straight game over.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
loneranger
325 posts
Posted by loneranger > 2021-05-25 08:34 | Report Abuse
@miniminer, why are you so certain that Hektar will pay the remaining 2020 outstanding dividend?