The great 2016 sale

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I look forward to prolonged depressed share prices, as I will be a net buyer of stocks. One thing I realised recently is that market prices tend to overreact (in both ways). Unless earnings get hit by 10% permanently, the share price shouldn't drop by 10% (assuming it was at intrinsic value).

For example Keppel Corp. It is interesting how some people expect it to drop to $4 or even $3. While not impossible, it is highly unlikely. At that price, Keppel Corp will be worth less than what it paid Keppel Land for (which IMO, was not a big premium).

Anyway, I recently bought First REIT and M1, which are finally at levels that I find attractive. Actually I was queuing for Select, Starburst and Accordia, but bid-ask spread for Select and Starburst is so high that I gave up. I think other than the counterparty/delisting risk of First REIT, it is pretty much a no brainer at this price... The leases are very attractively structured and priced.


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