Monday, November 21, 2016

Journey To Retirement Part 14.1 -- MapletreeCom Trust

Sold 80% of the right issue allotment at $1.52, $0.10 above the right issue price of $1.42.  The reason was pretty much strategic and act accordingly to Sun Tzu Art of War (孙子兵法).  As such, the overall cost of the "Strategic" section of the portfolio went down from $0.239/share to $0.0419/share.

Why 80% and not whole of everything ?   Well, the sale proceed of that 80% is just nice enough to subscribe to the right issue of Keppel DC Reit whose right issue price is at $1.155.  Normally, right issue will dilute the existing holding especially in term of dividend collected.  This is the case for my Keppel DC Reit should I opt not to subscribe for the right issue.  However, that is not the case of MapletreeCom Trust in my portfolio.  Keppel DC Reit is under the "Cash" section of the portfolio meaning I have injected cash into the investment.  On the other hand, MapletreeCom Trust is under the "Strategic" section of the portfolio meaning either I have injected a very small amount of cash into the investment or totally at $0 cost.  Hence, whatever dilution due to right issue does not affect that investment.  This is the plus point and advantage of all those "Strategic" stocks in my portfolio.  They are the 奇兵 in 孙子兵法.

Prior to the MapletreeCom Trust right issue, my "Strategic" section was at $0 cost for quite some time and now incur a small amount of cost ($0.0419/share) and that can be easily reduced back to $0 cost again.  Similarly, the quantity of MapletreeCom Trust being sold can be earned back at $0 cost again in the future given the right opportunity in the market.

No comments:

Post a Comment