Sunday, 4 January 2015

LMIR Trust - Keep or Dump?


Alright, I am going to be lazy and copy bits and pieces of LMIR trust introduction from their website.

"Lippo Malls Indonesia Retail Trust (LMIR Trust) is a Singapore-based real estate investment trust with a diversified portfolio of income producing retail and retail-related properties in Indonesia. The Sponsor of LMIR Trust is PT. Lippo Karawaci Tbk, Indonesia's largest listed property company and an internationally recognized corporation with a recognized track record and dominant position within the retail property industry in Indonesia"

The reason why I am blogging about LMIR Trust now is simple.

  • I have to cut my exposure to 'income stocks' as required by my asset allocation strategy for 2015. LMIR Trust falls under the category of 'income stocks'.
  • LMIR is my worst performing stock. I entered LMIR at an average price of $0.4075 during 2012. As of current market price of $0.34, I am experiencing an unrealised loss of about 16.56%. 

Honestly, if anyone asked me if my intention to dump LMIR is a knee-jerk reaction to their recent fall in price, my honest reply will be a resounding 'Yes'. I have never undergone such an experience before, facing a loss of more than 10%. I am lost.

The reasons why I have not sold it yet, is not based on any analysis where I am convinced I am right. The only reason is that I am scared. Afraid that once I sell it, the price will make an epic rebound. Pussy me:(

I have froze in my decision-making regarding LMIR Trust.

Ahh.. the mindset of a novice investors. So laughable.


Hence, I am going to do a proper analysis to aid in deciding if I should continue to hold onto LMIR. Only data with reliable sources will be used and there shall be minimal guesswork in this analysis.

Additionally, I am going to utilise a MSExcel file I created to help analyst LMIR. Not a complete work but it will do for now. If anyone has any idea to help improve it, please do let me know :)

So here it goes, my analysis of LMIR:

Of course, this method of determining the value of LMIR is probably not the most accurate. However, it is a method derive from my own expectation/requirements and hence, best suits my risk appetite.


hmmm.. . an overall score of 58.5 out of 100. Not the most ideal rating, but yet does not demand me to sell it immediately.

Guess what I'll do to ensure my asset allocation strategy remains on track is to sell LMIR trust when I start purchasing my first tranche of STI ETF this coming April or when the STI ETF falls 10% from its peak.

And that, is my first actionable plan for 2015. A very novice/amateur plan I know. But hey, at least it's a plan and let's see what fruits it'll bear for me by 2016 :D

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