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Hyflux has a tough resistance to break.
http://mystocksinvesting.com/singapore-stocks/hyflux/hyflux-upside-limited/
Did you get any?
joshlai86 ( Date: 17-Apr-2011 22:01) Posted:
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Comparing pref shares to ordinary shares, especially for high growth companies like Hyflux, I would pick ordinary shares anytime. Although you may get your 6% payout in a year (or should I say 4% in 1st yr, then 8% in the next), the price appreciation of the ordinary stock is almost certainly much higher. Please be reminded the the pref share price, unlike ordinary shares, is likely to stagnate.
Getting a near-guranteed 4% payout if you hold for a year is decent, but to me it's a huge opportunity cost when compared to how much the ordinary shares can appreciate in that same year. Ask yourself, will you regret if you invest in the pref shares and get 4% payout after a year when you see the ordinary stock go up by much much more...?
joshlai86 ( Date: 17-Apr-2011 22:01) Posted:
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I received partial allotment (one-seventh of the amount I had applied for).
apply 20 lots @ 200k !
So the director sold all his shares and is quitting his post?
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News: Notice Of A Director's (Including A Director Who Is A Substantial Shareholder) Interest And Change In Interest:Apr 15, 2011
http://hyflux.listedcompany.com/news.html/id/249423
| . | Date of change of Shareholding | 15/04/2011 | ||||||||||||||
| 2. | Name of Registered Holder | Lee Joo Hai | ||||||||||||||
| 3. | Circumstance(s) giving rise to the interest or change in interest | Sales in Open Market at Own Discretion | ||||||||||||||
| 4. | Information relating to shares held in the name of the Registered Holder | |||||||||||||||
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New123 ( Date: 15-Apr-2011 19:43) Posted:
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dont fight la.... today HYFLUX seems not much movement leh..
Institutional investors do not have moratorium on their shares when they subscribe for the IPOs unless they are pre-IPO investors.
Institutional investors will dump the shares when it suits them. After all, it is OPM (other peoples' money). It depends on their mandate, long, short, hedge whatever.
I never say oversubscribed means safe. need to weigh pros and cons.
Institutional investors usually have a moratorium on their shares when they subscribe for the IPOs, i believe sell down is caused more by shorters and traders, nothing to do with institutional investors.
And here, investors subscribing to hyflux pref share are likely to be those that are not too concerned with price corrections, we are buying for the stable payouts. even if share tanks, though i seriously doubt it will go below par, it doesnt matter to pref share investors so long as you have the ability to hold. end of day, so long as hyflux doesnt default (i didnt say they WON'T), they have the obligation to pay back all dividends in arrears.
thus, investors who are investing into pref shares must know what they are getting into. Assuming things go smoothly, 6% is a decent yield. Hyflux pays about $30+million every year in dividends. Assuming their profit stays flat, they would still be able to pay out the pref share dividends by foregoing the ordinary share dividend payout ($400million x 6%=$24million).
If you buy into the water shortage story in future, this pref share issue is worth buying and holding for the long term. and why compare with China Milk? when it comes to corporate governance, cannot comapre s'pore company with china company.
Totally agree with your last point, let the market make the call when it debuts.
The institutional investors do not even give face to Li Ka Sing, do you they are going to give face to a small Hyflux? When they want to dump, they just dump..fyi, oversubscribed IPO doesnt mean 100% safe, the market will make the call..
most of the time, when stock price went below IPO offered price, it's not the retail investors who dump the stocks, it's the institutional investors, you think by throwing your 1 or 2 lots, Hutchinson will go down? you must be kidding me..
so are you saying there is no potential of default? preference shares is still stocks, not even bond, if China Milk can default on bond, what makes you think Hyflux won't default on preference shares?
secondly, if retail investors dump stocks, the price is not affected because they only hold a small portion of the share capital, unlike institutional investors, when they dump, you'll cry!
joshlai86 ( Date: 17-Apr-2011 01:22) Posted:
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fully agree with you.
joshlai86 ( Date: 17-Apr-2011 01:22) Posted:
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firstly, this is a pref share, unlike other IPOs for ordinary shares. the price dont fall like nobody business, unless there is a potential default of hyflux.
secondly, retail investors are more likely to dump than institutional long term investors.
yes be cautious and do your due diligence. but let's be factual here and not scare people without basis.
they are the first ones to dump the shares on Day 1 just like many other previous IPOs, be cautious!
joshlai86 ( Date: 16-Apr-2011 08:50) Posted:
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The institutional placement of $200MM is already 7 times oversubscribed and has closed. that speaks alot about investors confidence on hyflux. and these are institutional investors that we are talking about.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_7C1F5D8A01E831D7482578730013F5CB/$file/Project_Swift_-_Announcement_on_closing_of_Placement_Tranche_15_April_2011.pdf?openelement
Time bomb !! I am very worry whether Hyflux has the ability to repay back ???
The directors is selling their shares. This may not be a good sign..
beruangface ( Date: 15-Apr-2011 17:04) Posted:
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69% exposure in Middle East, so significant lost in revenue, dont apply!!
Heard that all their engineers are sent back. Projects shelved, waiting for further notice
Quantico ( Date: 14-Apr-2011 21:31) Posted:
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