Sunday, March 13, 2011

Cache Logistic trust

Cache logistic trust



Company pays dividend per quarterly, with annualized DPU at 0.077. At price of 0.925, dividend yield is 8.3 % pa. Gearing is 23.7% based on last FY results. Sounds like a good trade...perhaps within the week. But the profit margin isn't that fantastic. Selling near 0.95 to 0.96 yields only around 3% ROC...not that fantastic. Even if the weekly divergence plays out and I sell at 0.97, it'll be around 5% - that might be worth something. As such, I'll not pay too much attention to the daily...I'll wait for the weekly to show some signs before I commit.

Interesting to see how it'll play out though. If conditions are right, this could be one of my favourite set up for a mid term trade. The yield is seductive though...