Its tough calling yourself a yield investor when your core portfolio is made up of cash. that is the situation that i am in right now.
I could have missed the run up recently in REITs indirectly but i can’t do much about that as I am still recovering and would not like to take so much stress out of stock selection. Now that i can, I find my choices limited. Problem now is that when the year end bonuses do come, i might be sitting on really a fair bit of cash.
This morning i took alook at a report on Mobile one and its lacklusture performance. Compared to its peers (Starhub and Singtel), its story looks of one that is running out of ideas or direction. Underlying, it still manages its cashflow well. Yield is forecast to be around 6%. That is satisfactory by my standards. The problem is where will the growth of the company come from? It is currently hovering at 1.97. That looks good to me.
Macquarie Infrastructure did not correct as expected. It did not fly as well. At 9% yield it does look very attractive. Problem is how long will this last. I think i did my fair share of searching on how the revenue was formed and no point delving back again. However, one still needs to be cautious. Technically, it looks like it has failed to break the resistance of 97 cents. looks to be trending lower. Cmon now, show me where to get in.
Another stock that i have been watching for some time is Telechoice. This is part of a group of companies that i am very very well acquainted. Solid balance sheet, very bad margin(3-4%) its trading at 32.
Another one to watch is MMP REIT. At pleasant its yield is near 6%, but technically it looks toppish, failing to break and important resistance. With the underground walkway situation looming over them, i believe i can find a better price to enter.