Saturday, November 20, 2010

First Reits Buying Process


I bought 2 lots First Reits at 0.955
Cost               = $955 x 2 = $1910
Current price  =  965 x 2 = $1930
P/L = $20


My rationale

My estimated average price for 5 lots of first reits
per lot = 0.682

0.955 x 2000 = 1910
2.5 lots entitled rights + 0.5 lots excess
=0.5x 3000 =$1500

total =$1930+$1500 = $3410

per lot= $3410/5=$682
average price = $0.682 per share

Nav after post rights = 77 cents

discount =0.09/0.77 x 100 = 11.6%












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