The difference between preferential offer and rights

I just received the booklet from Croesus regarding their preferential offer of 10 new units @ 0.797 for every 259 shares owned on ex-offer date of 3rd Aug 2016 that I blogged about here. I initially thought this is like rights exercise, which I'm very familiar with. But on closer inspection, it is not. Let's explore what's the major difference. I think the most important difference is that … [Read more...]

The first domino falls

We just heard news of Swiber sudden winding down. DBS is one of the main banks that loans money to Swiber, so their exposure is about 700 million. That's not a lot of loans, relatively speaking. 700 million is about 0.25% of their total outstanding loans in 2015 and it's about 15% of their total 2015 net profit. But they are confident of getting half of it back and after tapping onto their general … [Read more...]

Trying to be SMART on SMRT

Stupidity induced by greed. That's the only way to describe it. Upon announcement of the offer by Temasek holding for the delisting of SMRT at $1.68, I wanted to arbitrage on any possible price difference between the opening price and the offer price. These are the assumptions I make: 1. There's a dividend of 2.5 cts waiting for me 2. The price that Temasek Holdings offer is too low ball … [Read more...]

Growing my investment portfolio

There are only two ways in which my portfolio can grow without leverage - the first is to inject it with fresh capital, and the second is to grow it organically from dividends/capital appreciation. To grow it by injecting fresh capital, it will have to come from savings. And where do savings come from? From work. After subtracting all the necessary deductions, I'm left with 30k to inject into … [Read more...]

The day SGX stopped trading for 5.5 hrs

On Thurs, 14th July 2016, SGX had to halt trading for all its counters around 1130 pm. At first, it's supposed to resume trading at 2pm after lunch, but at 2pm when I was eagerly waiting to see if there's any movement from my brokerage platform, I was disappointed. Nothing moved. Later it was announced that it trading will be resumed at 4pm instead. Yet again, at 4pm, none of the counters moved. … [Read more...]

Who is being speculative?

A value investor, a trader and a gambler goes into a bar. After a drink or two, they started arguing over which of them is speculating in the market. The value investor says that the other two are not basing their investments on fundamental reasons and treating the buying of their part business ownership like digits, hence the two are speculative. The traders says that the other two did not … [Read more...]

Croesus Retail trust preferential offering

Those holding Croesus retail trust needs to fork out money again. This was after their most recent rights back in Oct 2015 which I've blogged about here, here and here. There is now a preferential offering exercise going on, and in all respects, we can treat this as a rights exercise. Here's the details: The dilution isn't that much. It's an offer of 10 new shares for every 259 shares held … [Read more...]

The Animal School

Thanks to sillyinvestor for egging me on to write something in my blog. Been a busy June for me and I'm still recuperating lol! But here's a very good story inspired by an article I read recently here. It's a very good article but also a sad one for me. I'm not sure why though. It's like something is lost and yet nobody knows it. Imagine losing a precious thing to you, but you didn't notice it … [Read more...]

Bullish / Bearish divergence

I thought I'll never write another article on technical analysis again. But here I go again. I trade on divergence, so it's a counter trend trading, if you want to classify which school of TA I'm into. Divergence means that there is a pair of things moving in opposite direction. One of the pair is invariably the price of the counter. The other pair could be any indicator, but the one I'm using is … [Read more...]

Are we there yet?

Having read Kyith's post here and 15hww's post here about financial security, I thought I should try it out for myself and see the necessary figures needed to reach financial independence. It's not so much as a fixed set of goal to reach by certain age, but more like a milestone or achievement kind of thing. It's like you play games and when you collect 999 of each items, or you pass through each … [Read more...]

It’s good to be inefficient

We always try our best to optimise things and make things more efficient. Even in finance, to optimise is to eliminate waste and to streamline all the financial process to produce the least waste and maximise the most returns. But we don't always have to be like that. Inefficiency creates redundancies. It creates a space where there are excess capacities that can be tapped when the norm is … [Read more...]

Your 3 buckets of time

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Each day there are 24 hours, no more no less. There are 7 days in a week too, so in total, there are 24 x 7 = 168 hours per week. If we divide 168 hours into 3 buckets of 'time', we will have 56 hours in one bucket, with a total of 3 such buckets. Let's look at the first red bucket. This is meant for sleep. If we have 8 hours of sleep per day over 7 days, we'll need 8 x 7 = 56  hours. This is … [Read more...]

Triangle of success

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I am reading this book by Neil Parischa, called the 'Happiness Equation'. I'm about 25% done and I thought it was a brilliant book - brilliant enough to share some of the stuff here. One of the interesting things I've read in the book is the concept about success. Any kind of success. It's really a triangle formula depicting the elements of success. Sales success is about sales. Able to sell … [Read more...]

Half year review 2016

I had a very productive half year 2016. From the 1st Jan, I had already started the year running. With the most heartfelt gratitude towards my ex-students and those parents who recommended friends to me, I spent very little time catching up on my income to bring it near to where I had left it last year. As a private tutor, every year I will have a mini 'retrenchment' exercise, where the … [Read more...]

3 simple steps to start stock investing

I seldom have guest post in my blog. In fact, almost never. But since I'm using Investingnote as my preferred charting platform and Evan who is our guest writer below is from Investingnote, I don't mind sharing this space with him. --------------------------------------------------------------------------------- In a previous article titled ‘5 reasons why stock investing is so difficult to … [Read more...]

How I reduce counterparty risk in my work

I was reading Investment moat's article on recent soilbuild's issuance of writ of summons to Technics Oil & Gas Limited. Soilbuild is seeking to claim back about $2 mil in rent plus an additional $12 mil in deposit for the second year of rent, with interest owed during the period where they didn't pay the rent. Counter party risk is hard to account for, but it's something we need to pay … [Read more...]

Hyflux 6% perpetual securities

This morning, I was quite excited to receive news of another retail bond. This time it's from Hyflux. The last they did that was in 2011 and I made a 4 part series on preference shares here. Back then, they are issuing 6% cumulative, non-convertible, non-voting and perpetual preference shares. This time, this issue seems more like perpetual shares than bonds. The difference is not significant … [Read more...]

Finding meaning in your suffering

Read the 4 paragraphs below and notice how you feel: You work everyday until you cannot work anymore. Everyday you are suffering but you do not know why. You work everyday until you cannot work anymore. Everyday you are suffering so that you can earn enough money. You work everyday until you cannot work anymore. Everyday you are suffering so that you can earn enough money so that your … [Read more...]

Bigscribe’s localized Crowdfunding guide

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Bigscribe recently released a guide on crowdfunding which I thought was a very good introduction to this new fintech phenomenon. I don't think there's any guide out there that caters to the local context and introduces crowdfunding to Singapore's retail investors or lenders. You know how the internet disrupted existing framework when Uber started connecting passengers and drivers and bypassed the … [Read more...]

New perennial 4.55% 4 yrs bond – Goodbye or good buy?

Looks like yet another bond offering in the local retail bond market. It's always the same few players offering bonds, and this time it's by Perennial Real Estate Holding (PREH). They just offered a 3 yrs 4.65% bond in Oct 2015 that I blogged about it here and now they are back at it again. This time round, it's a 4 yrs 4.55% bond. Let's see how it compares with the currently traded 3yr4.65% … [Read more...]