facebookI bought FIRST reit about 1 mth ago (not the lowest). Wonder if i should sell it now since the stock price went up to $1+ these few days. ? - Seedly

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Anonymous

29 May 2019

Insurance

I bought FIRST reit about 1 mth ago (not the lowest). Wonder if i should sell it now since the stock price went up to $1+ these few days. ?

The reason why i bought it is because i believe that healthcare sector won’t hit by economy as much since people will have to visit the hospitals if sick. I do aware of LP’s credit rating being downgraded to CCC+ and also the high concentration of the portfolio in Indo when I bought the share. But, i recently saw that OCBC downgraded a ‘sell’ for FIRST reit, and wonder if it’s a good time now since it finally went up for a little?

Discussion (2)

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Kenneth Lou

29 May 2019

Co-founder at Seedly

I actually attended the recent FIRST REIT AGM last month in April 2019.

It was pretty eye opening, and in fact sold at $0.98.

I also bought with the same reasons as you, strong industry - healthcare and a growing affluent population in Indonesia who are seeking private treatment in hospitals.

However, I must caution that this is from my perspective, and you can also read more about Rusmin (Fifth Person) shared during our recent SeedlyTV EP05 here: (https://seedly.sg/questions/what-s-are-the-like...)

Some key reasons I decided to SELL:

  • The biggest one was surrounding the old contract between sponsor and tennant (with the old rupiah exchange rate) and will be renewed in 2021
  • Sponsor issues (LIPPO Karawaci pulling out and transferring hands to OUE)
  • Overall growth prospects in Indonesia does not bode that well in the mid term (for healthcare sector)
  • New sponsor (OUE) does not have a good reputation in acquiring newer property

Some thoughts, you decide! I've cut loss and doubled down on my winners instead.

Gabriel Tham

29 May 2019

Tag Team Member at Kenichi Tag Team

I can tell u that if u sell now and the price goes up even more tomorrow, u will kick yourself for not waiting 1 more day to sell.

Are u looking at this REIT as a long term holding or just a short term trade?

Has the fundamentals or financials changed from your initial analysis?

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