The Spring that came alive! – CitySpring

CitySpring has been one of my longest holdings and it’s finally bearing fruits! Although nothing is confirmed yet, but good news is still good news. CitySpring is in a deal with Keppel Infrastructure Trust for M&A to create a possible $1.4b merger.

Some background on CitySpring

CitySpring is the first infrastructure business trust registered with the Monetary Authority of Singapore and has been established with the principal objective of investing in infrastructure assets and providing unitholders with long-term, regular and predictable distributions and the potential for long-term capital growth.

CitySpring’s portfolio comprises 100% of City Gas Trust (“City Gas”), 70% of SingSpring Trust (“SingSpring”), 100% of Basslink (including 100% of Basslink Telecoms) and 100% of CityNet Infrastructure Management Pte. Ltd. (“CityNet”)

Reasons why I chose CitySpring

It has been an interesting journey. I first bought CitySpring back in 3/12/12, 3 lots at 0.440. The reasons I had before buying technical were mainly technical to be honest. I bought it largely because it was on a really steady uptrend and I think it was sustainable. Then came in some MACD and Stochastics. Looking back, I’m not even sure if I would based on purely technical analysis. Nonetheless, I was very glad to have picked up this gem.

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However, I sold off that 3 lots not long after because of some reason that I can’t remember. But I do remember that I made enough to cover the brokerage fees. Looking back, this was a stupid move I should never have done. Because 3 months later, I bought it back at 0.510, but 6 lots this time round. It was quite high a price to pay and it came down slightly from there and remained there. So for a long period of time I was simply collected dividend with a unrealised paper loss. I then saw a good opportunity to average down and went for it. I bought another 6 lots. It was a move that I never regretted, because I turned a loss into a profit from there on. Holding onto 12 lots with an average cost price of 0.48 now.

CitySpring has been giving me a stable $0.0082 every quarter and I really like it a lot. It’s one of the reasons why I decided to explore into creating a dividend portfolio as well! I’m not sure what the future holds for this merger between CitySpring and Keppel Infrastructure Trust, but I’m hoping that it’s good and that the synergy created between the both will be beneficial to both the companies and to the shareholders.

News:

http://www.todayonline.com/business/cityspring-keppel-infrastructure-possible-s14b-merger

http://www.straitstimes.com/news/business/more-business-stories/story/temasek-backed-cityspring-said-weigh-merger-keppel-unit-20

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