Mapletree Commercial Trust Preferential Share Offering: Got all the excess I applied for?

Mapletree Commercial Trust held a preferential share offering to fund its acquisition of Mapletree Business City at a price of $1.42 per share.

I applied for 3920 excess rights thinking that I'll only get part of what I applied for since the offering price of $1.42 was lower than market price.

To my surprise, I everything that I applied for. I  wonder what that says about investor demand for local REITs if 'free money' people didn't apply for more. People getting cautious about anyhow pressing at the ATM?

Strategy Report: August 2016 Part II

A bit too expensive now?

I am not very good at investing in upwards moving markets. As you can tell by the blog title, I prefer to buy after a crash.

I found it much easier to buy buy buy just after Brexit when everything was cheap and much harder to buy anything now since the prices have risen by so much.

In the absence of any fundamental economic shifts, I still believe in reversion to mean.

Since the last strategy report, there were 2 days more downturn which I used to buy more SAN followed by re-buying LYG at lower than my selling prices. But note that LYG went ex-Div last week. I also added a bit of BT when it dipped below $26.00 given its somewhat

defensive qualities.

But at the moment, I am sitting this upturn out. I will subscribe to scrip dividend for MapletreeLog and excess rights for MapletreeComm REITS since the upturn means that the prices for scrip dividend/excess rights is attractive.

Strategy Report: August 2016

 

For the month of August, I have subscribed to Morningstar's reports via IBKR. I was previously given a free trial and I liked the content. It costs $14.90/month, cheaper than subscribing through their website. More importantly, its very easy to switch on and off IBKR subscriptions. Since Morningstar is FA oriented, and fundamentals don't change that month, one could subscribe say, once every 3 months and not miss much.

Investing Idea: Banco Santander? (SAN - ADR)

I don't have any foreign bank counters apart from LYG and HSBC.  

US Banks will hit me with 30% withholding tax and their dividends aren't fantastic. If I really wanted US Banking exposure, it would be better to buy the SPDR financials ETF listed on LSE and with15% withholding on dividends. But I prefer to look for yield.

Banco Santander is Spain's largest bank with exposure to Latin America and the UK. It is listed on the LSE as BNC but there are also ADRs based on the underlying Spanish share. Spain has a 19% dividend withholding tax but the good news is that if you choose scrip dividend, you do not have to pay withholding tax :

• Santander Scrip Dividend

With a 5% dividend yield and  a "real"  banking business as opposed to "investment banking" (which some say is fake banking), I think that SAN is a better addition to my portfolio than another UK bank like Barclays (at the moment, no thank you) or Royal Bank of Scotland (my UK bank account is technically with RBS since they absorbed my previous bank during the last financial crisis).

So anyway, I have never been able to time the bottom and TA suggests signs of downside. But its a new month so I have initiated a position in SAN.

Footnote: Results of bank stress test: Bank stress test  - 4 UK banks were tested, LLOY best result, HSBC second, then RBS and BCS.