Invest SREITs at all-time low or better to go into Bond Investment Instead?

I am having a headache recently with regard to my upcoming regular month end of additional capital injection into the investment portfolios. On one hand, SREITs have tanked again to near their 52 weeks low and now seems the best time to invest. Saying that, in particularly for the past few months, whenever I thought that the SREITs prices have bottomed and accumulated more units, their price just dropped further. On the other hand, my investment forage into bond unit trusts over the past 1 year has been stable thus far especially with global inflation under control- interest income which I had received is around 6% return per annum and capital price of the bond fund held their ground well. Moreover, there is also potential further capital appreciation once interest rate cuts by the US Federal Reserve is announced.

1. Invest SREITs at all-time low or better to go into Bond Investment Instead? 

I think that I will probably add on to the bond unit trusts for June 2024 month end as I have previously in May 2024 already invested approximately S$10K into both United Hampshire US REIT and Frasers Logistics & Commercial Trust  (unfortunately, both SREIT's unit price declined further after my respective purchases).

2. A close friend asked me whether Equities or Money Market Funds is the best investment in view of current market?

I thought that my friend asked me a very interesting question. My personal thoughts are that for risk averse folks who find equities and bonds extremely risky, then maybe buying into the Money Market Funds is well worth it. Singapore Saving Bonds or T-bills are also good options. 

The thing is that over the years, I have decided to just keep my real thoughts to myself whenever risk averse close friends asked me such question. I will at most just share my thoughts on the above financial instruments since their risk profile is extreme prudence and they generally ask for the sake of affirming their own beliefs (if you say something else, then it gets into a heated debate). However, the fact remains that returns from such investments will barely keep up with inflation. I think that some risks need to be undertaken in order to exit the rat race earlier.

Ok, that's all for today's post, have a great week ahead folks!   

SREIT With Lowest Gearing Ratio and Attractive Distribution Yield of over 7%.

Hi Folks, today, I will be looking into this S-REIT that has one of the lowest gearing ratio among the top REITs in Singapore as well as its very attractive distribution yield of over 7%. 

Please see below for my latest video on YouTube channel. Going forward, I will be posting various exclusive investment contents onto my YouTube channel only. Please subscribe to my YouTube channel also to get the latest content for sharing.

Penny Stock Oceanus Group Roared Back To Life.

Recently on 29th May 2024, Oceanus Group announced a RMB 200Mil investment intention agreement with the Shaoxing Huangjiu Town local authority to help grow its alcohol distribution business in China. The town of Shaoxing is known since ancient times for producing yellow wine such as the famous "Nu Er Hong". This will give a boost to its future earnings via its already well established current distribution network painstakingly built up over the years. From this partnership, the local partner will import alcohol distributed by Oceanus, and on the other hand, Oceanus will help expand the distribution and grow the demand of yellow wine produced by Shaoxing.

1. Major Shareholder, Alacrity Investment Group, Mops Up Additional Shares from Market.

Alacrity Investment Group, the largest shareholder of Oceanus Group, has further raised its stake in Oceanus Group to express its vote of confidence in the future prospects of its investee. On 30 May 2024, it acquired 30 million shares for a total of $300,000 from the open market. The following day, it acquired another 25 million shares for $265,000. Following these two transactions, Alacrity now owns 4.43 billion shares or 17.25% of the company. The average price of the purchases is thus around S$0.01 per share. This seems to indicate that the major shareholder is extremely optimistic about the future of Oceanus Group.

2. Historical Oceanus Group Price Recap.

In 2022, Oceanus Group placed out additional 5.2 per cent of its existing share capital with Alacrity also taking part at S$0.023 per share. 

I recalled that in April 2021 I have ventured into Oceanus at S$0.038 per share and exited at around S$0.040 per share a few months later (Oct 2021). Interestingly, Oceanus Group went on to make losses despite initially getting out of the watchlist of SGX after its current CEO turn the business around. Its current prices has plunged to S$0.009 to S$0.01 per share this week.  

3. Financials

While Oceans Group is still making losses for its latest FY2023, it has managed to reduce its losses to <S$2.2Mil> relative to FY2022 staggering losses of <S$11.7Mil>. With the continuous growth in its trading business and topline revenue generation, FY2024 maybe the year of breakeven with some profits.

Parting thoughts

I think that Oceanus Group is roaring back to life with the results of the transformation work set in place for the past 4 years gradually surfacing. Hence I decided to take up a minor position in Oceanus Group again with 65,000 shares @ S$0.01 per share. Perhaps, Oceanus Group is finally ripe for harvesting.