Caveat Emptor

https://www.businesstimes.com.sg/companies-markets/perpetual-securities-wont-be-called-until-tuaspring-is-divested-hyflux HYFLUX will not redeem its retail perpetual securities until the divestment of Tuaspring is completed, it said on Tuesday. A S$400 million tranche of Hyflux's perps reach their first call date on April 25. Hyflux has the right but not the obligation to redeem its perps at the first call date. The coupon yield on these perps will step up from 6 per cent to 8 per cent per annum until they are redeemed. Hyflux aimed to partially divest up to 70 per cent of Tuaspring water desalination and power plant last year, but has not. Tuaspring is held on its books at a value of S$1.3 billion. Since October 2016, Hyflux has also been trying to sell the Tianjin Dagang desalination plant in China, which had a book value of S$150 million. Ms Lum said that she is still looking for a buyer, although the asset has been brought back into Hyflux's balance sheet as it no long...

Silver Lake axis EGM (1)   THE PROPOSED ACQUISITION OF: (A)   70% OF THE ISSUED AND PAID-UP SHARE CAPITAL OF SILVERLAKE DIGITAL ECONOMY SDN BHD,SILVERLAKE DIGITALE SDN BHD AND SILVERLAKE ONE PARADIGM SDNBHD (COLLECTIVELY, THE “TARGET ENTITIES”), HELD BY SILVERLAKE INVESTMENT LTD (“SIL”), PURSUANT TO THE ACQUISITION OF THE ENTIRE ISSUED AND PAID-UP SHARE CAPITAL OF SIL (“SIL SHARES”), AS AN INTERESTED PERSON TRANSACTION; AND (B)   THE BALANCE 30% OF THE ISSUED AND PAID-UP SHARE CAPITAL OF EACH OF THE TARGET ENTITIES, FROM THE MINORITY SHAREHOLDER (S) OF EACH TARGET E NTITY (COLLECTIVELY, THE “MINORITY SELLERS”),  WHICH,  TOGETHER  WITH  THE ACQUISITION OF  THE  SIL SHARES, CONSTITUTES A POTENTIAL MAJOR ACQUISITION, (COLLECTIVELY, THE “PROPOSED SHARE ACQUISITION”); (2)   THE PROPOSED EXECUTION OF (A) THE SYMMETRY LICENCE AND (B ) THE TRANSITIONAL SERVICES AGREEMENT (COLLECTIVELY, THE “PROPOSED ANCILLARY AGR...

Ocbc analysis While others are chasing their love in Valentine's Day, I am chasing the stock OCBC. Despite divesting it back at Nov 2016 after it reaches my calculated fair value, I have kept it in my watch list and monitoring it's news. Unlike the scenario whereby you are chasing an old flame, this is for rational reasons rather than sentimental ones. 2018 14 Feb latest report Improving fundamentals Unknown performance of wealth management => improved aum Increased performance across group Strong financial position Continual Share buyback throughout 2017, but subsequent issuance of preference shares to shore up balance sheet Increased dividend per share Improved margins Improved revenue Improved margin of safety with the recent correction Caveat Low free cash flow. Ocbc is literally running low on cash for other activities I bought at 12.51 2 lots because I am dirt poor and I considered this as an average conviction position size. I will average down if given...

Sources http://sillyinvestor.blogspot.sg/2017/10/random-thoughts-some-uses-of-mental.html https://www.channelnewsasia.com/news/singapore/fewer-marriages-more-divorces-in-2016-singstat-9040550 http://www.berkshirehathaway.com/2016ar/2016ar.pdf https://en.wikipedia.org/wiki/Marriage_vows https://en.wikipedia.org/wiki/Confirmation_bias https://en.wikipedia.org/wiki/Illusion_of_control https://en.wikipedia.org/wiki/Anchoring https://en.wikipedia.org/wiki/Loss_aversion Chasing the dream Dream girl vs dream stock Humans are programmed with genetic shortcuts that set them up for success in the dating market, but failure in the financial markets. Behavioural bias. 1) Confirmation bias - You believe in only information that supports your view and ignore the others Chasing a girl vs chasing a stock. Women can be very complicated. As a single guy I get a lot of relationship advice. When she say no you think she say yes. Perseverance is the key to success. When the fundamentals ...

On hindsight, it is always obvious. Everyone is commenting about US stock market reaching new heights for the rest of last year. This year, I also see many investment bloggers commenting about misreading the market and missed out on another bull run. And now, the major correction finally arrived. I must admit I always had a small warchest to capitalise on dips in the market. I always stick to my low PE PEG and good fundamentals methodology. I didn't have a stellar record last year but I persisted in always stay sufficiently vested in the market until there are visible warning signs. Well, the flash flood finally occurred at an unexpected timing. I wanted to hoard more cash but as a salaried worker, this is hardly feasible. I have been eyeing the bollinger bands and VIX index as a gauge of irrational market sentiment and to be frank I am not sure how long this window will open.  Weeks, months or years? Now with every Tom dick and harry trying to come out with plausible reasons to...

Sources http://investors.hyflux.com/newsroom/20180201_173107_600_GB8Y3Z4PUZ7L5A01.3.pdf http://investors.hyflux.com/newsroom/20180201_173107_600_GB8Y3Z4PUZ7L5A01.1.pdf https://hyfluxhomeproducts.com/ Hyflux extraordinary general meeting Hyfluxshop - good buy or goodbye? I attended the egm on 02 Feb at Hyflux innovation centre. It was my first agm/egm in my life and it was an eye opener. I have heavily researched on Hyflux, read about the water industry and even went to the YouTube channel to see its products and how the business is like on the ground and I was really impressed by it. Hyflux is in the municipal Liquid business, but ironically in a debt ridden and illiquid financial position. A part of me wanted to liquidate a portion of my ordinary shares while the other part still think it is a company with great potential. It was venturing into retail business (Hyfluxshop) that could be a potential diwosify, and now it is spinning it off and seeking shareholder approval in this ...

Found a very useful guide detailing the process of short selling and leverage. It is good to understand the processes and risks in a visual and easy to follow format, rather than reading through chunks of text Short Selling https://www.fidelity.com/learning-center/trading-investing/trading/about-short-selling 1) Short selling is an advanced trading approach, available to margin account holders only. A speculator believe that the stock price will fall within a short period. To increase his potential returns, he arrange to sell his security (despite not holding any) at a higher price, and when the stock price eventually decreases, he is able to buy back at a lower price to cover his deficient position. The trade can be instructed at T and settlement date at T+2.  In reality, naked short selling is too detrimental and risky and markets like Singapore, China and Hong Kong prohibits that. If you wish to short a stock, you must prove that you are able to cover that deficient position...