DBS    Last:42.3    -0.05

Buy DBS Preference Share

It's like IPO, subject to balloting process if demand exceeds supply (due to overwhelming response). No guarantee of how much u apply is how much u get.

Raindrops      ( Date: 16-Nov-2010 17:03) Posted: Oh so i can sell the 100 shares after gettin it?

 

Market crash, the preference shares trading price might fall below par value. But if you hold until 2020 when DBS calls the shares back, and assuming DBS is still alive and kicking, then you will get back your $ plus 10 years of 4.7% interest (assuming they pay every year) at the end of 2020. If you have holding power, it is a worthwhile investment. DYODD.

 

http://forum.channelnewsasia.com/viewtopic.php?t=384484&start=20

YSL888      ( Date: 17-Nov-2010 12:25) Posted: Hi all experts, Please tell what is the difference between preference shares and a bonds? I would like to put my money now in divdend income share now anad is this shares good? Will it fall as much as like other stock in a correcting or crash market? Do i have to hold a certain period to qualify their divdends? I am actually thinking to put my fund in fixed deoposit account and wait until the market crash n bottom by early2012 ( Only my personal view), but find that fixed deposit pay too low return of 0.5% interest. So the we all have the money then to buy again on corrected cheaper share price. May I know what is my risks if I buy these preference shares, is it safe in price if markets really crash? Thanks for your advice.

 

Hi all experts, Please tell what is the difference between preference shares and a bonds? I would like to put my money now in divdend income share now anad is this shares good? Will it fall as much as like other stock in a correcting or crash market? Do i have to hold a certain period to qualify their divdends?

I am actually thinking to put my fund in fixed deoposit account and wait until the market crash n bottom by early2012 ( Only my personal view), but find that fixed deposit pay too low return of 0.5% interest. So the we all have the money then to buy again on corrected cheaper share price. May I know what is my risks if I buy these preference shares, is it safe in price if markets really crash?

Thanks for your advice.

 

If sell offline (call broker), just say 1 lot will do.1 lot represents 100 unit in this case. If sell online, some securities online platform will let u key in how many share u want to sell. 1 share = 1 unit.

buoijet      ( Date: 17-Nov-2010 09:04) Posted: If I were to sell 1 lot sometime in the future, do i indicate 100 units as quantity, since 100 units  = 1 lot ? Sorry for asking such a simple question, but just wanna be sure. Regards, Jet

 

I think you are correct.  In fact you either get 4.7% if DBS gives dividend or zero if DBS does not declare dividend.  There was an article in the Straits Times or Sunday Times several days ago on this and the risks subscribers assume.

WeiQiQi      ( Date: 16-Nov-2010 17:16) Posted: "your dividend will also increase and there is no maturity date like Bonds" eh... I don't think that is likely as 4.7% is used as a ceiling than a floor. Based on the exisiting 6% ncps which 'matures' next year May 2011, DBS has not paid anything more than 6% in the past 9.5 years ALHTOUGH it has not missed a single payment as well . alexchia01      ( Date: 16-Nov-2010 14:00) Posted: This is a Preference Share, not a Bond. You look at this too much like a Bond. The 4.7% is Dividend, not Interest on your principle. The Dividend is based on DBS Profits. This is very attractive because if DBS do well, your dividend will also increase and there is no maturity date like Bonds. It's also traded in the Market, do you know how Hot it's going to be? Anyway, this is just my personal knowledge, I could be wrong. Invest at your own risk. Good luck.

 

If I were to sell 1 lot sometime in the future, do i indicate 100 units as quantity, since 100 units  = 1 lot ? Sorry for asking such a simple question, but just wanna be sure.

Regards,
Jet

 

 

Thanks for the advice. But looking at OCBC and UOB preference shares issued in 2008, they are all trading slightly above their par value plus interest rate, i think we'll find out how the DBS pref shares will perform after it lists.

 

i will like to share with those who expect a high capital gain on this.... i bought this one month ago when DBS released to institution fund houses only, and the current indicated price is $101.5

 

i think when it debut, there is a high chance of making a gross 4.7% return immed. Likely to open around 104.7, which is the fixed interest.

 

Pref share are not so good for quick trades for capital gains. Investors of pref shares usually do it for the yield....in this case 4.7% annually.

So, those who subscribe it with the intention to flip it for a 15-25% gain on its maiden trading day may be sorely disappointed.

Personnal opinion.

DYODD

Raindrops      ( Date: 16-Nov-2010 17:03) Posted: Oh so i can sell the 100 shares after gettin it?

 

"your dividend will also increase and there is no maturity date like Bonds"

eh... I don't think that is likely as 4.7% is used as a ceiling than a floor. Based on the exisiting 6% ncps which 'matures' next year May 2011, DBS has not paid anything more than 6% in the past 9.5 years ALHTOUGH it has not missed a single payment as well .

alexchia01      ( Date: 16-Nov-2010 14:00) Posted: This is a Preference Share, not a Bond. You look at this too much like a Bond. The 4.7% is Dividend, not Interest on your principle. The Dividend is based on DBS Profits. This is very attractive because if DBS do well, your dividend will also increase and there is no maturity date like Bonds. It's also traded in the Market, do you know how Hot it's going to be? Anyway, this is just my personal knowledge, I could be wrong. Invest at your own risk. Good luck. pharoah88      ( Date: 16-Nov-2010 13:03) Posted: 250  CHANCES  per  YEAR tO  make 4.7%  per  DAY  per YEAR 1  hIt        =   4.7%  per  YEAR   [prObabIlIty      1:250] 10  hIts    =   47%    per  YEAR  [prObabIlIty    10:250] 100  hIts  =   470%  per  YEAR  [prObabIlIty  100:250]

 

suggest you read last sunday's ST which gave a very good write up on this 4.7% pref share. How one can get in, get out, and risks involved.

Raindrops      ( Date: 16-Nov-2010 17:03) Posted: Oh so i can sell the 100 shares after gettin it?

 

You don't need to be existing shareholder to apply. Can apply from any ATM.

alexchia01      ( Date: 16-Nov-2010 17:01) Posted: 1 Lot is 100 shares, not the usual 1000 shares. So the minimum is $10,000. Raindrops      ( Date: 16-Nov-2010 16:58) Posted: Hi guys? is the meaning of preferential shares means u need to be a DBS stock holder?  Anyway, the meaning of $100 is per share? So 1 lot is $100000??? Is it SO EX?

 

Yes. Start Trading on 23 Nov 2010.

Raindrops      ( Date: 16-Nov-2010 17:03) Posted: Oh so i can sell the 100 shares after gettin it?

 

Oh so i can sell the 100 shares after gettin it?

 

1 Lot is 100 shares, not the usual 1000 shares. So the minimum is $10,000.

Raindrops      ( Date: 16-Nov-2010 16:58) Posted: Hi guys? is the meaning of preferential shares means u need to be a DBS stock holder?  Anyway, the meaning of $100 is per share? So 1 lot is $100000??? Is it SO EX?

 

Hi guys? is the meaning of preferential shares means u need to be a DBS stock holder?  Anyway, the meaning of $100 is per share? So 1 lot is $100000??? Is it SO EX?

 

You just think SATs how high still can go ?? downward potential is higher than upward... what is the point to receive higher dividend with higher risk of downward ??

hlfoo2010      ( Date: 16-Nov-2010 15:40) Posted: 11 lots a lot of money. If buy SATs today with the money??? what is the dividend you have???  des_khor      ( Date: 16-Nov-2010 15:13) Posted: I like this very much !! I have OCBC 5.1% 3 lots since IPO and so far so good....every year received $1530 dividend ! later going to apply 11 lots.... see whether can get 5 lots or not....

 

11 lots a lot of money. If buy SATs today with the money??? what is the dividend you have??? 

des_khor      ( Date: 16-Nov-2010 15:13) Posted: I like this very much !! I have OCBC 5.1% 3 lots since IPO and so far so good....every year received $1530 dividend ! later going to apply 11 lots.... see whether can get 5 lots or not....