Search Results for: ipo

Why I will shun investing in Facebook

Facebook has been mulling going public and it is not new news. It will trade under the ticker symbol “FB” in NASDAQ. Rumours are flying around that it will list on May 17th 2012. Though Facebook going public is akin to the unveiling of a new iPhone, I’m not buying into the hype nor will I be buying into the company. Just like how Warren Buffett shuns companies that are not predictable, I will keep Facebook at a 10-foot pole’s distance (I meant investing in Facebook at a 10-foot pole’s distance). Yes, I do have a Facebook account and...

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Oxley Holdings – revisted…….they have executed well……what’s next for this stock ??

Oxley Holdings – revisted…….they have executed well……what’s next for this stock ?? Tuesday, 17 April, 2012  4:7 PM Posted by Kevin Scully My initial comments  I first wrote about Oxley Holdings on 6 January 2011.  The share price then was about S$0.38.  I liked the hidden potential which if they executed well would give an RNAV of S$0.62 and on a present value basis this would be worth S$0.51.   I was concerned about four things: a) could they execute the sale of Ubi – their large industrial site in Paya Lebar with more than 1mn sq ft of...

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UIA – possible scam?

I received an email from UIA out of the blue, asking me to invest in the company at a pre-IPO price which is on a 5x discount. I was wondering, if the opportunity is so good, why would it land up in my email and not snapped up by some other billionaires and millionaires? Sounds fishy to me. And UIA means Universal Interests Accumulative. I cringed when I read this para: By October 2011, UIA reached 204 countries becoming Earth’s default one world currency™. UIA differs from banks because it issues its own currency without having to incur debt...

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Genting Singapore Issues 5.125% Perpetual Bonds to Retail Investors: Should you go for it?

Genting Singapore, who just had issue the same 5.125% coupon perpetual bonds to investors in large tranches are now making another 500mil available to retail investors in smaller tranches. You will have to subscribe a minimum of $5000, after which you can apply at an increment of $1000 You can apply this by going to the ATM just like how you would apply for an IPO This bond will go on forever, but it is callable after 10 years on Oct 2022. If it is not call back, after which the interest will become 6.125% Perpetual bonds have no...

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Cordlife Group – Potential Growing Recurring Income?

This seemed to be one of the most spectacular IPO that I have seen after Sheng Siong, with the share price being driven up by 50% from its original IPO price of $0.49. At the current price of 20, seemed like people is treating it as a healthcare stock like RMG and Q&M Dental. On the surface, the business model does look pretty enticing. It is the market leader in Singapore with a market share of 62% and the market is still relatively untapped at only 25%. CAGR is expected to be 9-10% till 2015 and competition is weak...

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Apple – US$960?

Could Apple reach $960? Possible. I don’t mean to say that PE will rise by 60% as I am not a fortune-teller but for revenue and profit to rise by 60%, why not? Before we go about why it can reach $960, let’s examine its growth driver in the past 4 years. Fig 1 Revenue by Segment A quick glance and every single figure is increasing year on year other than ipod. Mac sales increases by around 25% yearly as a result of perhaps brand loyalty coming from iphone and ipad. Ipod is on a downtrend due to the...

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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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