Ascendas REIT merged with Ascot Residence Trust, converting shares into Ascot at a different ratio. The speaker explains why your share count changed and walks through whether to hold or sell the merged company based on its fundamentals.
Ascendas REIT and Ascott Residence Trust.
1.12 (spoken).
~1.33 (spoken as "133").
Hi, welcome to this new video. Before starting, I want to wish you a Happy New Year 2020. I hope this year will be great for you. You will have all the success you deserve and not only in your trading or investing journey, but in every aspect of your life. Now the topic today is again about REITs real estate investment Trust. If you follow this channel, you know that this is one of the main investing tool, if you want to call it like that, that I really like because REITs are great to generate passive income with dividends. What happened today? Actually here you see Accendas Age Trust is one of the REITs in Singapore and actually I had shares of this REIT. Now if you go to the chart you see that in the last days the price was flat. See here the price was flat. And imagine my surprise when I log into my trading account and I realized that my shares of Ascendancy Trust disappear. I could not see them anymore. And maybe this happened to you as well. Maybe you log into your trading account and and you realize that your shares were missing. So you may have been a little worried about that. But what happened? So if you look at the news, the thing is that Ascendanch Trust merged with another reit, Ascot Residence Trust. So what happened is that if you had shares of Ascendanch Trust they have been replaced to shares of Ascot Resident Trust. So that's what happened in my account as well. I found out that I had shares of this REIT that I never had before and then I found out that the reason for this was this merge. So this is to tell you that in case you are worried about this is normal, nothing wrong. If you look at the price Ascend SH Trust was trading at 1.12 1.12 but ascode is here and is trading at slightly higher 133. So this means that probably if you had number of shares of Ascend SH Trust the amount of shares you have now for Ascot Read is a little lower. So again, nothing wrong. It's just because the price of Ascot Read is higher than that of ascendash Trust. Now what to do? In this case you have two options. In my opinion you should have a look at the fundamentals of the Ascot REIT or let's say the new REIT that is including Ascode and Ascendanch Trust. And if you think that the fundamentals are good then I would hold or maybe buy more as you would have done with a Send Usage Trust. If you think that the fundamentals are not as good as a Send usage trust then you should close your position and sell your shares. Because when this thing happen, basically there is a difference in the fundamentals of the investment you hold. So as usually investors do they hold things and companies that are strong and whenever there is a change in the fundamentals of the company and this is one of the reason for a change emerge, then you should re evaluate your investment and decide if you are still confident in your investment or is better to close your position. So this is what I wanted to share in this first video of the year. I know that I didn't update my channel for the last two, three weeks is because I was traveling and then there was this holiday period. But I will start again from probably next week or in two weeks, more regularly. And by the way, there are some news that I want to share now. Just quickly, I will give you more details in the future. I received some requests to show some strategies that are easy to implement, especially for people that are just starting. Because one of the main challenge that you may have when you want to invest or trade is that there are so many rules, so many strategies. And I understand because it was the same for me when I started. So people were like, okay, do you have some strategy that is easier for people that just start? So you start to get familiar with all the stock and orders and all the things that I share in my channel. And actually the good news is that yes, there are some strategies where the time that you have to dedicate is very low. So in this year 2020, my plan is to release some material about that, some strategy that you can implement. And I will show you the step by step how to do everything. And also something more detailed about investing in REITs, something more structured. Because for now I'm uploading videos touching different topics. But for people that want to start, probably is better to have something that will bring you from the A to the Z knowing what to do in every situation. Because something I realize is that many times people going to courses and classes, they are exposed to these techniques. But everything that you see during the course looks so nice. The chart is so easy. And when you are really trading or investing for real, that's when you realize that actually is not so easy. You may be facing a chart and you don't know what you are supposed to do, even though you know the rules, because sometimes is subjective. So I want to remove this subjective component as much as possible. So you end up with a strategy that is really easy to implement and really clear so you don't have second guess, or you look at the chart and you don't know what to do. But as I say, more of this later. This is only the first video of the year. Thank you for watching and see you soon.
