Thursday, January 19, 2012

AIMS Industrial REIT: quarterly results out tomorrow

Aims industrial REIT has been on the rise for a while. It is quite interesting to see it closing at $1 today after rising by another 1.5c

My thoughts about AIMS currently:
1) Release of quarterly results tomorrow
It seems that investors are quite positive about the results tomorrow. A much higher traded volume is observed as compared to the past week. Perhaps AIMS has attracted some short term speculators that feel that AIMS quarterly results will be positive tomorrow.

2) $1 is a psychological point
Many people like round numbers. I heard people around me making statements like:
a) I will buy SIA if it reaches $10
b) I will sell Singtel if it reaches $3.50
and so on.
So how will aims behave after reaching $1.00? Its 52 week range is 0.93 to 1.13. Will it continue to climb further to break it's one year high? or will it get tired and slip back?

3) Technical analysis
Based on TA, both RSI and stochastics are in the region of the overbought region. I also noticed that today the 200 day moving average is crossed. If the bullish trend continues, the next resistance we might see is at 1.02. However, we may also observe a downward movement as many TA indicators are showing that is is currently overbought.

I would think that AIMS is still a good investment counter to consider. Its NAV is around 1.365 (based on At $1, it is trading at a much lower price than its NAV. Its yield (~10%) remains the highest among locally listed REITs. This makes AIMS an attractive buy for dividend income.

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