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14-11-2010, 02:37 PM
(14-11-2010, 02:26 PM)Stocker Wrote:(14-11-2010, 01:38 PM)Nick Wrote: 3Q results are as expected...but its very low yield is a put-off. I think the yield is around 2-3% after taking into account NAV depreciation ?
Exactly. The difference is actually taking back own capital that invested . Does it make sense ?
The stock being priced at 2% yield (after taking into account depreciation) makes sense since the Trust's counter-parties are NEA and PUB which have extremely high credit rating. So I guess it should be expected that their yields to match those of SGS bonds ? Problems only start if you believe that the Trust is yielding 7% return perpetually.
I rather stick to the other trust whose yields are derived solely from operating profits.
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