Author: Investmoolah

Far East Orchard Holdings

Far East Orchard is a relatively unknown company on the SGX. However, what I noticed is that it has been constantly declaring a dividend of 6 cents annually. At a current price of $1.27 per share, this translates to a yield of 4.65%.Far East Annual Declared Dividends Is the 6 cents dividend sustainable? This is the first question I had in mind. While delving into Far East’s cash flow, I did not use the reported figure under ” net cash from operating activities” but instead “Cash before working capital changes”; this eliminates the chance of companies using trade receivables...

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Singapore Financial Authorities are Doing too Little and in the Wrong Area

In the past few years, Singapore has seen a wide range of corporate failures of SGX Listed companies. Some of them include delisting after a large unexplained fall in prices, spectacular accounting impairments not seen since Enron, lack of material disclosures and corporate governance issues. All these is leading to a dearth of IPOs and lack of investor sentiments which has seen the latest IPO only being 1.3x times subscribed. If it is difficult for investors to analysis the financials of a company due to poor accounting and lack of disclosures, they are likely to stay away. This is...

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How Singapore’s Soverign Wealth Fund may cause further damage in the local Oil & Gas industry and eventually Job Losses

I have been reading up on the recent annual reports and financial companies as this is the usual time of statement release. There has been some interesting observation. However one of the most pertinent is what I am seeing is in the oil & gas sector. Below are just purely my views on what may happen in Singapore’s Local Oil & gas industry and readers should not just depend on it for investment decisions. Temasek is trying to profit from the situation and not acting as a backstop This is my first and most important observation. While we have...

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First Ship Lease Trust – Q4 earnings

FSL has released its Q4 results. All in all, a rather muted outlook. So here’s a summary Lower Cashflow generation Year on Year cashflow generation ability has fallen to US$40 million range, previous year was US$51.4million Thereafter, this amount is likely to drop to US $20 million with the loss of the lucrative US$ 20 million evergreen charter come 2021. Valuation based on Balance Sheet On balance sheet, FSL has debts of $97 million 6.7% per annum interest and a 7% convertible bond of 6.3 million. Using a simple cash flow projection, it is now estimated that FSL is...

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How Hyflux was taken advantage by almost everyone

I am pretty sure many readers will be following the Hyflux restructuring. In my view, it is unfortunate that many external  parties are taking advantage of the situation and in turn, making the 34,000 stakeholders of Hyflux less well of – many of whom are ordinary Singapore Citizens and retirees who have their CPF/SRS or even retirement money in Hyflux’s financial Instruments. Chief of this is Salim or Sembcorp who have tried to swoop in to take advantage of having a controlling stake in Tuaspring, a jewel in Hyflux asset despite it being  claimed “toxic”. For basic background information,...

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Why Hyflux Perpetual and Preference Holders should Vote “No” to the Restructuring.

Hyflux has released its offer to bondholder, perpetual holders towards restructuring of the company after the Tuaspring’s offer.  Details of Offer for Perps and Pref Shareholders To summarise, Hyflux has offered to exchange the $900 million in value for Perpetuals and Preference shareholders into 10.26% of the restructured company + a $27 million cash repayment. Based on Salim action of injecting $400 million to obtain 60% of the restructured company, it can be seen that 10.26% of the company, worth roughly $67 million, was given to perpetual and preference shareholders. This means Preference and perpetuals holders will get about...

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Investing mistake in Ezion Holdings

Ezion Holdings thus far is probably the largest investing mistake I have made so far. So perhaps its good to do an after action review of it. Turn of Events- The straw that broke the Camel’s back The recent announcement of Ezion not having obtained its working capital financing is the most damaging issue. My mistake was that I had assumed when Ezion paid its lenders on 3 July 2018 the consent fee to obtain the working capital loan, it would have meant that the loan will be given soon after; however, it seems not to be the case....

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The Curious Case of Sino Grandness (Part 2)

6 months back, I wrote about my interesting observation of Sino Grandness (SFIG). In the last few days, TTA a company which has loaned to SFIG made an announcement that SFIG has not paid back the loan amount of about RMB 140 million. This is despite the company having extended the maturity date of their loan once. The link can be found here In my opinion, given that SFIG has a cash balance of RMB$416million, it should not be possible for SFIG to miss the repayment of RMB$140 million. Increasingly High Receivables and Dicey Cashflow   One thing that is...

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Year End 2018 Portfoilo Update

It has been a while since the last update of my portfolio; since then the market has experienced a turbulent time of decline. Among my portfolio, a stock of mine, First Ship Lease Trust (FSL Trust)has announced a drastic corporate actions. This too has spurred me to react. Divestment- First Ship Lease Trust In Nov 2018, FSL announced plans to issue a non renounceable equity raising by issuing new shares at a ratio of 3 new shares for every 2 shares at a price of $0.045. The price of the new shares was at a massive discount to FSL’s...

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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 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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