K-REIT Asia – The Breakout... finally

Tomorrow is D-day. The time of the year where all companies start to hand in the Half Year report cards – starting with K-Reit.
This afternoon, its shares price hit a 6 month low of $2.67. Then in the last hour of trading, the price breakout to record a 18cents gain for the day at $2.90. Volume for the day is 2million, one of the highest for the past few months.
Most important of this all, the Timing. Tomorrow is the release of half year result, today the phenomenon breakout in the last one-hour. Got it?

I have been watching this counter for long, too long. K-reit’s portfolio includes prime office building like Prudential Tower, Keppel Towers, GE Tower and Bugis Junction Towers. Last year, it achieved a distributable income of $11.2M, exceeding its forecast by 23.9%. Balance sheet looks good, not fantastic, but easily above average. However, its shares price has been a continuous decline for the last 3 months. This doesn’t make sense to me. Rental market is raising (like crazy!) and yet this counter is stagnant. There must be something that everyone else knows except me. At 1600hr today, I got the answer, this counter is just taking a breather all this while.
For tomorrow, the initial price resistance is $3.00, if this is broken, the next resistance will be $3.25. Longer term price target $3.80 for the next 6 months.I urge you to put this counter in your watchlist, at least just for tomorrow.
Disclaimer: All shares recommendations in this Blog are my personal opinion. Readers are encouraged to do their own research before investing. Remember, it’s your own money! I will not be liable for any losses incurred.