Starhub, First REIT and Aims Amp Industrial Trust on my portfolio (view my current holdings here) have been on a tear. To be honest I thought they would under perform the market but the rise is nice.
Starhub is in a very nice upward channel long term wise. It has now breached its 2008 highs of 3.13. In this channel, there are corrections almost half the size of the climb. If you want to get invested at lease wait for the pull back.
The same can be said of First REIT as well. Clear pullbacks to the 43 week moving average, which will bring it back to my purchase price (gasp! think of the profits that I would have missed out)
However I believe my average price isn’t terribly cheap, the value is fair. Now with the run up the dividend yields do not look as good. In fact most of the stocks on my dividend stock tracker have yield compression since they all run up.
In the case of Starhub the yield is just 6.27% which still beats fixed deposits by a lot. For First REIT it was compressed from 8.2% to 7.2%.
We don’t see a rise in volume or that any substantial shareholders getting invested so I don’t feel a strong justification of the overseas fund flows injection theory.
Do we expect to see any earnings upgrade? I don’t think so as well. We won’t be expecting large earnings changes.
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