As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Sunday, 24 February 2019

Saving, Lending and Investing (6)


Read? Saving, Lending and Investing (6)


SINGAPORE - The High Court has approved an application by embattled water treatment firm Hyflux and three of its subsidiaries for leave to convene a scheme meeting with all its creditors over its proposed restructuring.

It can now proceed with a scheme meeting on April 5 with unsecured creditors including noteholders and 29 banks, which make up one creditor class, as well as perpetual securities and preference shareholders, who make up another creditor class.

Under the reorganisation plan, filed with the High Court last week, some 34,000 registered holders of Hyflux perpetual securities and preference shares, which are owed $900 million, will receive a total of $27 million in cash and a 10.26 per cent share of the reorganised company.



CW8888:


This Hyflux has re-enforced Uncle8888' own belief in lending and investing.

As retail, we have control over lending and investing; till now he never believe in lending his money in hope of Return of Capital and get caught in the illusion of safety of money. 

In the market; by nature nothing is safe from predators wiping out helpless minority to enrich themselves!


Lehman Brothers minibond; and Hyflux Perf and Perp will go into History to show that no one can see that far into future to ensure safety of our money. At least in investing; there is still some hope for multi-baggers :-)




15 comments:

  1. Not only that, your descendents will thank U for putting your money in stocks and especially property that nobody wants in your time.

    ReplyDelete
  2. CW,

    Banks, credit card companies, legal money lenders, and illegal "ah longs" all have ready "recovery" methods in the event of a default.

    What do we have?

    And you wonder why companies rather higher interests from issuing corporate debt than borrowing money from banks at much lower interest rates?


    Its like selling/writing options for the "passive" income. We have a high probability to make lots of small winnings as most options expire worthless, but there's always a low probablity for complete wipeout lurking...

    Nassim Taleb goes for the Toto opposite route. Buy options with high probability of expiring worthless, but if the black swan event comes along, clean house like winning Toto first prize (no sharing with other idiots)!!!


    We pick our own poisons.



    ReplyDelete
  3. Just remember the story of the Indian tribe that sold Manhattan away for $24 trade value to the Dutch.

    Which is now New York.

    ReplyDelete
  4. The irony is that prefs & perps are technically considered equity rather than debt, but marketed as "bonds" by many bank RMs to retails.

    The funny thing is that in the propsed restructuring, ordinary shareholders are projected to face 60% writedown (similar to the banks & MTN holders) compared to the 90% writedown by pref & perp holders. Even though pref & perp supposedly rank higher than ordinary shares.

    Of course ordinary shareholders have already kena a -91% drop in share price from 2010 to May 2018! LOL!

    ReplyDelete
    Replies
    1. The difference is one group knows it is risky as hyflux is growth-dividend stock and other group thinks it is relatively safe for yield

      Delete
  5. One of the reasons i have not bought into any prefs and perps from Hyflux's hot- house marketing time till now is if HYflux doing well i only get a Bond's coupon return. Nothing else.

    And if not doing well.......Hmmmm....

    ReplyDelete
    Replies
    1. i mean i prefer the risks of buying a stock than the risks of it's bond anytime.

      i think the risk to reward always favour to buying the stock than it's bond.

      Delete
    2. From Hyflux episode, it seems buying prefs & perps is for 见 好 就 收。

      Hit & run?

      Delete
    3. Perps is a bit crazy or ridiculous to me.

      It means i can only get back my money if there is a market.

      Delete
  6. Lemon Bros 10,000 retail. Hyflux 34,000 retail. Very bad situation. Soon Govt will come out with some measure to protect future retail from getting into similar mess like post Lemon Bros.

    ReplyDelete
  7. May be and may be not.

    Remember the S-Chips(aka S-cheats).

    i lost quite heavily even though i knew at that time i was playing with fire(aka House Money was Free Money ma).

    ReplyDelete
  8. "Soon Govt will come out with some measure to protect future retail from getting into similar mess"

    Scarly they ban CPFIS.

    CPF may also use those minibond, high notes, hyflux cases as advertisement to convince people to top up their CPF. "Every month I see my CPF statement, I feel so happy!" Can get Lim Swee Say as celebrity endorser LOL

    If people use a longterm trend following, they should have taken action to sell their prefs @ $105 in Nov 2014, or perps @ <$0.945 in Sep 2017.

    After those dates, both prefs & perps never showed strong price action to buy back in anymore.

    ReplyDelete
    Replies
    1. Already we got few bloggers championing CPF top up. LOL!

      Delete
  9. Bernie Madoff victims getting more refunds

    "Customers who suffered certified losses of as much as $1.49 million will have been paid in full after the distribution"

    Safer to invest in ponzi schemes? At least get money back? LOL! 😛🤣😝

    PS: An elderly couple in my church managed to get back all their Madoff "investment" by last year --- took 10 long years of various refunds by US authorities.

    ReplyDelete
  10. The elderly couple is blessed indeed with longevity and to get all their money back.

    There were some Big Ponzi schemes in the past in Singapore, wonder the victims get any money back?

    ReplyDelete

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