Search Results for: ipo

Global Investments Limited (GIL) Rights Issue

There is a reason some stocks are never to be touched. Stocks that you do not understand what their business is. Stocks that have business subjecting them to risks of losing all their capital. Global Investments Limited (GIL) is one of them. It exists in 2007 at IPO time as Babcock and Brown Global Management Pte Ltd. Back then if you are chasing for yields, this one yields high together with then favorite Macquarie International Infrastructure Fund (MIIF) (coincidentally both Australian) The problem of it versus MIIF is that while MIIF then are overpriced assets, at least you know...

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NOL Update

Previous comment on NOL here. Price then was $1.28. I mentioned sellers (shortists specifically) were very kind to give chance to buyers. Today price hit $1.465. How did I know it was the work of shortists who eventually will have to bring up the price as seen today? Trade secret :)...

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Do you practice low cost passive index investing?

I don’t. That’s normal as I am used to arguing with the stop sign. It’s quite common to come across “investors” who will pooh-pooh the use of actively managed mutual funds. They will usually mention these 2 strong and convincing arguments:  1) Low cost or no-load funds outperform funds with high management fees  Especially when compounded over the long term – like in 30 years. I can’t argue with that! But doesn’t it look a lot like the Discounted Cash Flow (DCF) valuation method? There are “assumptions” and my favourite line – “all things being equal”.  If you have...

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Sheng Siong: A good investment for income?

Last year in August, Sheng Siong’s IPO created a bit of a buzz. The company promised a pay out ratio of 90% in FY 2011 and FY 2012 to woo investors and offered shares to the public at 33c a piece. It was 1.3x oversubscribed. For FY2011, net profit fell 36.1% while revenue fell 8%. Net profit margin declined to 4.7% in FY2011 from 6.8% in FY2010. This is although gross profit margin improved somewhat to 22.1% compared to 21.8% in the previous year. Frankly, I find its net profit margin to be rather unattractive and it actually looks worse than some local...

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Is the REIT Myth Busted?

By Calvin Yeo (reproduced with permission from his blog www.investinpassiveincome.com) There was an article published in Business Times a while back by The Hooi Ling titled ‘The REIT Myth Busted’. I read the article with great interest as I have significant holdings of REITs. Basically, the article is saying that if you held most of the Singapore REITs from day 1, you would have paid more for the rights issue than what you received from the dividends from the REIT. It uses CapitaMall Trust in a hypothetical situation where the unit holder holds a unit of the REIT since...

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Listen to the walk; not the talk

Do read the below conversations between a newbie and 2 “seasoned” investors with a light-hearted touch: Newbie to Investor A “Is this stock a good buy?” “Sure! This stock’s P/E ratio is at all time low of 9 times; the forecasted growth next year is 20%; it’s selling at 30% discount to its book value; the chart is showing it is building a strong base – which means it will break out in price soon! Plus it got lots of dragons and phoenixes…” “That’s great! I assume you already own this wonderful stock?” “I not vested in this counter.”...

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Rights Issues with Standard Chartered Bank (SCB) Online Trading

Standard Chartered have been late to the Singapore brokerage scene but attracted a lot of retail investors with No minimum commission Zero custody fees Low fees But how well does SCB handled cash calls/rights issues? Turns out if you intend to hold stocks with SCB long term it actually handles rights issues quite well. Why does this matter From time to time, the stocks that you are holding in your SCB account need additional funding other than capital garnered during IPO. The stock can either raised debts or raise more equity, the latter being rights issues. Rights issues gives...

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I was so wrong on Hyflux preference shares!

Can anyone still remember the hoo-ha surrounding Hyflux’s perpetual preference shares issue back in April? I wrote a tongue-in-cheek satire on it:   Can you lend me some money? With the benefit of 7 months’ hindsight, boy! Was I dead wrong or what?  I was skeptical on this Hyflux preference shares as I was wrongly comparing European sovereign bonds with it… Spain 10 years bond is now yielding 6.7%, Italy at 7%, and don’t even mention Greece…  I was “right” (face saving mode on now) to question something is not right when you have to “borrow” at 6% – when...

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Comments on Recent Business Times Article – The REIT Myth Busted

There was an article published on Business Times on Monday ‘The REIT Myth Busted’ by Teh Hooi Ling. I read the article with great interest as I have significant holdings of REITs. Basically, the article is saying that if you held most of the S REITs from day 1, you would have paid more for the rights issue than what you received from the dividends from the REIT. It uses CapitaMall Trust in a hypothetical situation where the unit holder holds a unit of the REIT since IPO and subscribes to all the rights regardless of the subscription price...

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LMIR: Sinking rights.

LMIR’s rights sank today. It gapped down, touching an intraday low of 4.4c before closing at 4.6c. Is it going to sink further tomorrow? Thus far, I have only discussed LMIR’s rights issue from the perspective of its fundamentals. What about a TA? For seasoned and orthodox practitioners of technical analysis, they will say that it is impossible to do a TA on this counter with only three sessions so far. As I am neither seasoned nor orthodox, I have in the past done TA on such counters. One that comes to mind is Sabana REIT during its IPO days. So, for...

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Quick Take on HPH Trust: Analysts touting 9% yield

We did an article some time back on HPH Trust. [Analysis here >>] Since then the price went down to a low of 59 cents and came back up at 68 cents. Why is this stock continue to be weak? Analyst are still thinking that there is a good risk versus reward for this. The general consensus during IPO was that HPH will grow 8.5% in 2011 and 8.4 in 2012. Turns out instead of growing based on GDP growth, volume have fell 4.6% instead. DMG Analyst think that the port assets owned by HPH are relatively mature and...

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Sabana REIT reports on-forecast Net Property Income and Distributable Income for 3Q2011

Distribution Per Unit (“DPU”) of 2.14 cents and annualised DPU of 8.49 cents for 3Q2011. On track to deliver annualised DPU of 8.63 cents for FY2011 • Achieved S$50.1 million gain in annual revaluation of its IPO portfolio • Obtained investment grade credit rating from Standard & Poor’s • Announced acquisitions of four yield-accretive properties worth S$132.3 million – portfolio size to cross S$1.0 billion mark upon legal completion By ANGELA TAN Sabana Real Estate Investment Management Pte Ltd, the manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust, reported on Wednesday a distribution per unit (DPU) of...

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What is your message to the world?

Steve Jobs has passed away and the entire world was saddened by the demise of this great man. What makes him so revered as compared to those who passed away in the same day? Is it because he made a difference in your life indirectly? Is it because he created a lot of value in the society? How did having iPods, iPhones and iPads add positivity to your life? I used to think I need to find a passion in my life where I would dive into it day and night, and I will live happily. I have been...

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Apple Co-Founder Steve Jobs Passes Away

Co-founder of Apple Inc, maker of the iconic Mac computers, iPod, iPhone and iPad, Steve Jobs has passed away. Beyond being the person who shaped the devices that I avidly use for everything from leisure to facilitating my work processes as a financial adviser, Steve Jobs was someone whose actions and life story greatly inspire me. Many are sharing this video on social networking sites. It is one that I have watched many times previously, long before this tragic day happened. While I was struggling with the decision of making the leap of faith to an Independent platform, Steve’s...

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Sphinx Asia – possible scam?

A friend called to clarify on some stocks transaction issues that his relative had. This relative had bought IPO shares of an European company through an agency called Spinx Asia. She want to sell off 3,000 shares that she bought but was told that she could not sell at this moment in time. If she want to, she has to buy another 7,000 shares to sell in groups of 10,000 shares. Here are the questions and answers during our conversation to help you better understand the situation. What is the company and which exchange is it listed on? She...

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