United States Oil Fund (USO): On Short Term Up Trend

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United States Oil Fund (USO) is currently trading in up trend channel after breaking out from a Double Bottoms reversal chart pattern. However, this short term up trend may be capped by the declining 200D SMA resistance. Looking at the longer term chart, USO is very near to historical low.

USO May11-2016USO Long Term May11-2016

In Summary for USO base on Technical Analysis:

  • Price very near to historical low.
  • Double Bottoms Reversal Pattern
  • Currently on Up Trend

Compute the Reward vs Risk Ratio and make your investing decision.


What is USO ?

United States Oil Fund

The United States Oil Fund® LP (USO) is an exchange-traded security designed to track the daily price movements of West Texas Intermediate (“WTI”) light, sweet crude oil. USO issues shares that may be purchased and sold on the NYSE Arca.

The investment objective of USO is for the daily changes in percentage terms of its shares’ NAV to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in price of USO’s Benchmark Oil Futures Contract, less USO’s expenses.

USO’s Benchmark is the near month crude oil futures contract traded on the NYMEX. If the near month futures contract is within two weeks of expiration, the Benchmark will be the next month contract to expire. The crude oil contract is WTI light, sweet crude oil delivered to Cushing, Oklahoma.

USO invests primarily in listed crude oil futures contracts and other oil-related futures contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less.

USO’s Fund Benefits

  • USO offers commodity exposure without using a commodity futures account.
  • USO provides “equity-like” features including, intra-day pricing, and market, limit, and stop orders.
  • USO provides Portfolio Holdings, Market Price, NAV and TNA its website each day.
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Manulife US REIT IPO Prospectus and Fundamental Analysis

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Manulife US REIT Logo

SINGAPORE — In a move expected to inject new life into the sluggish initial public offering (IPO) market in Singapore, Manulife US Real Estate Investment Trust (Manulife US REIT) is seeking to raise as much as US$470 million (S$632 million) in its second attempt at a listing here, which would be the largest such deal in the Republic in nearly two years.

The company, a unit of Canadian insurer Manulife Financial Corp, plans to sell 566 million units at between 82 US cents and 83 US cents apiece, according to a draft prospectus filed with the Monetary Authority of Singapore yesterday. Of the units on offer, 169.5 million will be taken up by cornerstone investors, which include Oman Investment Fund, Fortress Capital Asset Management and certain private banking clients of DBS Bank. The balance will be offered to institutional investors and the public. Read more on Manulife US REIT IPO news

Previous post on Manulife US REIT IPO for comparison purpose

Base on Manulife US REIT IPO Prospectus (549 pages)

Manulife US REIT is a Singapore REIT established with the investment strategy principally to invest, directly or indirectly, in a portfolio of income-producing office real estate in key markets in the United States, as well as real estate-related assets.

  • Type = Commercial (Office)
  • Sponsor = Manulife (9.5% stake)
  • Market Capitalization = US$513 Million to US$519 Million
  • Total Unit = 625,540,000 (Page 52)
  • Portfolio = 3 Grade A Commercial Property. Peachtree @ MidTown, Figueroa @ Los Angeles and Michelson @ Irvine 
  • IPO Offer Price = Between US$0.82 to US$0.83
  • NAV = US$0.78 (Page 52)
  • Price / NAV = between 1.051  to 1.064
  • Distribution Yield = 6.6%/6.7% (2016) 7.1%/7.2% (2017)
  • WALE = 5.7 Years (Page 19)
  • Occupancy Rate = 96.5% (Page 20)
  • Gearing Ratio = 294,000/777,450 = 37.8% (Page 52)
  • Plan Listing: May 20, 2016

Manulife US REIT PortfolioManulife US REIT Rental DiversificationDowntown LA Tenant Mix Midtown Tenant Mix Orange County Tenant MixManulife US REIT WALEManulife US REIT OccupancyManulife US REIT Rental EscalationManulife US REIT Distribution Yield Manulife US REIT Forecast DPUManulife US REIT Ownership Manulife US REIT StructureManulife US IPO  Listing Dates

Compare Manulife US REIT with other Singapore REIT here.

Is it a good REIT to subscribe? Is the yield attractive with the IPO share price? How to analyse the fundamental of this Manulife US REIT to see whether it is a good long term investment? What are the risks? Check out the coming Singapore REIT Public Workshop here.

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Gold, Go, Goal!

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Gold has finally bottomed up! Gold ETF (GLD) is currently on confirmed uptrend after breakout from the Down Trend Channel. Base on the chart pattern, GLD will continue to go higher! Look at the upside potential vs down side risk! Yummy!

GLD Long Term May5-2016

See previous post on Gold ETF (GLD) here.

Continue ReadingGold, Go, Goal!