Author: Investmoolah

First Ship Lease Trust (FSL) – Q3 Earnings

FSL has released its Q3 results. All in all, the trust has survived the threats from banks. However from its recent Q3 results, it seems there has been some damage to the company. Higher Financing Cost Reading its latest Q3 reports, it seems the new bank loans have a higher margin than the old loans interest of (2.8%+ LIBOR). The new loan arraignments have a weighted average of (4.012% + LIBOR). This means as of now the loan’s interest rates are about 6.55%. This is quite high and will definitely affect my previous valuation of FSL. Coupled with the refinanced...

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Review of Silverlake Axis

In recent times, Silverlake Axis’s share price has fallen from its 50-60 cents range to that of 41.5 cents as of today. The question on people’s mind is probably, if the current share price reflects the value of the company. As a start, let’s recap on the business of Silverlake. Brief description of Silverlake Axis Silverlake Axis’s main competency lies in the core banking system industry and insurance. It produces software which is used to run the operations of financial institution. As the core banking system is a critical system for the bank, there is a high risk and...

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Review of Silverlake Axis

In recent times, Silverlake Axis’s share price has fallen from its 50-60 cents range to that of 41.5 cents as of today. The question on people’s mind is probably, if the current share price reflects the value of the company. As a start, let’s recap on the business of Silverlake. Brief description of Silverlake Axis Silverlake Axis’s main competency lies in the core banking system industry and insurance. It produces software which is used to run the operations of financial institution. As the core banking system is a critical system for the bank, there is a high risk and...

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Is Ezion Turnaround in Sight?

Ezion Holdings is in the business of chartering out its liftboats, service rigs and barges etc. The company recently underwent a financial restructuring to save itself. It led to a massive dilution of old shareholders who are unlikely to recover their cost price. What went Wrong and its Financial Restructuring Ezion’s management made the big mistake during the oil boom days to borrow money extensively to buy oil support equipment thinking that chartering rates will continue to be that high. In 2015, oil prices went down and Ezion’s equipment were chartering at much lower rates and the company was...

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Is Ezion Turnaround in Sight?

Ezion Holdings is in the business of chartering out its liftboats, service rigs and barges etc. The company recently underwent a financial restructuring to save itself. It led to a massive dilution of old shareholders who are unlikely to recover their cost price.What went Wrong and its Financial RestructuringEzion’s management made the big mistake during the oil boom days to borrow money extensively to buy oil support equipment thinking that chartering rates will continue to be that high. In 2015, oil prices went down and Ezion’s equipment were chartering at much lower rates and the company was unable to...

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Is There Something Wrong with Singapore’s Accounting Practices?

With the recent spate of SGX companies taking huge write down of assets and frauds still happening as frequently, it got me wondering- Does Singapore have a weak financial regulator or is it there something wrong with our accounting practises?Case 1- Noble Write DownMany of us will be aware of Noble’s huge write down on its financial derivatives and the subsequent loss in shareholder value.  All these while, an independent research house, Iceberg, has been indicating that Noble had over-valued its financial derivative assets. What made it worse was that Noble’s own external auditor, Ernest & Young, had for...

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Is There Something Wrong with Singapore’s Accounting Practices?

With the recent spate of SGX companies taking huge write down of assets and frauds still happening as frequently, it got me wondering- Does Singapore have a weak financial regulator or is it there something wrong with our accounting practises? Case 1- Noble Write Down Many of us will be aware of Noble’s huge write down on its financial derivatives and the subsequent loss in shareholder value.  All these while, an independent research house, Iceberg, has been indicating that Noble had over-valued its financial derivative assets. What made it worse was that Noble’s own external auditor, Ernest & Young,...

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Hyflux Sale of Tuaspring and the Financial Damages – Part 2

In my previous post, we discussed about the possibility of Hyflux taking a s$600-$750 million impairment for the sale of Tuaspring. The next order of question is to find out the effects of the impairment on vested interests in Hyflux.If Hyflux Closes ShopBasically Hyflux has 4 vested parties. Should all of Hyflux’s assets be sold off (cease to be a going concern), below is the order in which these parties will have a share of the proceeds:(i) Firstly, secured lenders (e.g. Banks such as Maybank)(ii) Unsecured Bondholders (who collectively hold $265 million of Hyflux bonds)(iii) Perpetual and Preference Shareholders (collectively having a $900 Million Stake)(iv) Lastly...

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Hyflux Sale of Tuaspring and the Financial Damages – Part 2

In my previous post, we discussed about the possibility of Hyflux taking a s$600-$750 million impairment for the sale of Tuaspring. The next order of question is to find out the effects of the impairment on vested interests in Hyflux.If Hyflux Closes ShopBasically Hyflux has 4 vested parties. Should all of Hyflux’s assets be sold off (cease to be a going concern), below is the order in which these parties will have a share of the proceeds:(i) Firstly, secured lenders (e.g. Banks such as Maybank)(ii) Unsecured Bondholders (who collectively hold $265 million of Hyflux bonds)(iii) Perpetual and Preference Shareholders (collectively having a $900 Million Stake)(iv) Lastly...

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Hyflux Sale of Tuaspring and the Financial Damages – Part 1

To inform investors on its financial restructuring, Hyflux held two townhall sessions on 19 and 20 July 2018. One of interesting fact is the presentation on the book value of their projects, reproduced below. The link to their slides can be found here. Figure 1: Stated Book Value of Hyflu’s Projects The Elephant in the Room – Tuaspring Project Hyflux’s financial restructuring revolves around the sale of Tuaspring. The sale value of this project will determine how much losses investors will take. During the court hearing in June 2018, Hyflux’s lawyers said they are hoping to close a deal...

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Hyflux Sale of Tuaspring and the Financial Damages – Part 1

To inform investors on its financial restructuring, Hyflux held two townhall sessions on 19 and 20 July 2018. One of interesting fact is the presentation on the book value of their projects, reproduced below. The link to their slides can be found here. Figure 1: Stated Book Value of Hyflu’s Projects The Elephant in the Room – Tuaspring Project Hyflux’s financial restructuring revolves around the sale of Tuaspring. The sale value of this project will determine how much losses investors will take. During the court hearing in June 2018, Hyflux’s lawyers said they are hoping to close a deal...

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The Curious Case of Sino Grandness

There is one SGX company which has constantly baffled me and that is an S-Chip Sino Grandness. About Sino Grandness (SFIG) Basically SFIG is a food and beverage company. Its main product is the selling of a canned beverage product line called “Garden Fresh” which claims to be distributed and consumed by consumers in China and Hong Kong. SFIG is a very “profitable” company churning about 7.5 Singapore cents per share in earnings. This means SFIG is now trading at about 2.8x PE. By all valuation metrics of finance textbooks, SFIG is a value gem because it trades at...

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The Curious Case of Sino Grandness

There is one SGX company which has constantly baffled me and that is an S-Chip Sino Grandness.About Sino Grandness (SFIG)Basically SFIG is a food and beverage company. Its main product is the selling of a canned beverage product line called “Garden Fresh” which claims to be distributed and consumed by consumers in China and Hong Kong. SFIG is a very “profitable” company churning about 7.5 Singapore cents per share in earnings. This means SFIG is now trading at about 2.8x PE. By all valuation metrics of finance textbooks, SFIG is a value gem because it trades at a P/E...

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