Wednesday, February 11, 2009

Saizen Reit - Lost of Faith?

Saizen Reit, a reit with poor fate. When it was first launched, it immediately lost 7% from its IPO price of $1. As the financial crisis deepens, the reit is losing its value day by day. Look at its chart above, the price has gone down from $0.93 to 9.5 cents today!

Reits are said to be 'defensive' plays. Defensive? My foot! In a declining market, nothing is 'defensive'! To make things worse, Saizen has issues with refinancing its debt which is to mature soon.

Can you imagine if you were the one who bought at the IPO price of S$1.00, you are only left with 9.5 cents, that's only left with 9.5% of your original investment value.

So if you are investing, please do your own research, don't just believe those so-called 'advisors' who are just out there to ...... (you know what).

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