I still have units of FSL Trust which were bought at an average price of S$1.00 per unit. By any stretch of imagination, I cannot foresee FSL Trust trading at S$1.00 per unit in the next few years, if ever. I have kept these units in a frozen portfolio together with a few other stocks to remind myself of the mistakes I made. As FSL Trust enjoyed a recovery in unit price and was trading at an average of 60c for about a year till the first few days of May 2010, reaching a high of 69.5c in July 2009, I advised potential investors that it is still a risky investment. The primary reason why I consider FSL Trust to be a risky investment is its indebtedness. As of 31 March 2010, it had bank loans of US$484.6m. This has been reduced to US$ 477.1m after another loan payment was made in April 2010. FSL Trust makes quarterly loan payments. About half of the loans will mature in April 2012 and the rest are maturing in March 2014. Although its vessels are valued at US$826m, it only has US$56m in cash and cash equivalents as of 31 March 2010. Read more...