Showing posts from October, 2020

Forced Errors in trade execution

Forced Errors and unforced errors Drawing lessons from amateur tennis (which is similar to amateur investing as a losers game), A forced error is when someone hits a shot that is strong enough to force you to miss your shot or not touch it at all. An Unforced error is when the player has time to get in position and setup for the shot but still misses. This can be caused by bad contact, timing, shot selection, etc. Forced Error My workplace tightened regulations around the usage of broker dealers and I am forced to liquidate and close off my brokerage account in SCB and Poems. This is a huge hit to my existing investment strategy towards a more aggressive allocation to foreign GARP stocks. SCB was my favored custodian for my foreign listed shares, as it has zero corporate action and custody fees which is favored for a buy and hold, while POEMS provide me potential access to China A stocks directly. The other options my workplace permitted as authorized broker-dealers (UBS and

Considerations for FCT Preferential Offering

Considerations for FCT Preferential Offering Frasers Center-point Trust took an aggressive stand to expand its portfolio of retail focused malls by divesting the under performing Bedok Mall, and raising capital for the purchase of a 63.1% stake in AsiaRetail Fund Limited. Due to the limited cash position of the REIT structure, a private placement (For accredited investor) and preferential offering (for existing shareholders) is conducted to raise capital to pare down its gearing and also complete its acquisition. Despite the creative naming of private placement / preferential offerings used by the investment bankers, the deal is essentially a dilution to the existing unit-holders, as the REIT manager seek to issue units to raise capital for the REIT to expand its portfolio base. Impact from Covid on the sub-urban malls There will be a lot of ca sualties in the vanilla shopping malls . I have first hand seen shop closures in some of the malls around Singapore. The short term WALE is a