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Is There Now An Opportunity In OUE Commercial Real Estate Investment Trust (SGX:TS0U)?

OUE Commercial Real Estate Investment Trust (SGX:TS0U), a reits company based in Singapore, saw its share price hover around a small range of SGD0.69 to SGD0.72 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at OUE Commercial Real Estate Investment Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for OUE Commercial Real Estate Investment Trust

What’s the opportunity in OUE Commercial Real Estate Investment Trust?

Good news, investors! OUE Commercial Real Estate Investment Trust is still a bargain right now. According to my valuation, the intrinsic value for the stock is SGD1.68, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. OUE Commercial Real Estate Investment Trust’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of OUE Commercial Real Estate Investment Trust look like?

SGX:TS0U Future Profit June 27th 18
SGX:TS0U Future Profit June 27th 18

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Though in the case of OUE Commercial Real Estate Investment Trust, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What this means for you:

Are you a shareholder? Although TS0U is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to TS0U, or whether diversifying into another stock may be a better move for your total risk and return.

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Are you a potential investor? If you’ve been keeping tabs on TS0U for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on OUE Commercial Real Estate Investment Trust. You can find everything you need to know about OUE Commercial Real Estate Investment Trust in the latest infographic research report. If you are no longer interested in OUE Commercial Real Estate Investment Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.