SG Wealth Builder

To make money. To build wealth. To preserve wealth.

SembCorp Industries should invest in Hyflux Ltd

Sign up as member and get your free copy of investment report on SGX stocks!

SG Wealth Builder Membership

Email notification

If you are not ready to join as member, you may opt to enter your email address to receive notifications of new posts by email. Note that you can only view excerpt of the articles as non-member.

Join 3,058 other subscribers

On 22 May 2018, Hyflux rocked the market by announcing that it is seeking High Court’s protection to reorganise their liabilities and businesses. Meanwhile, Hyflux also requested for a voluntary trading suspension of its shares and securities listed on SGX. But the biggest bombshell had to be the non-payment of the distribution on its $500 million 6.00% Perpetual Capital Securities, which will be due on 28 May 2018.

Previously, I have written an article on Hyflux perpetual securities and highlighted its risks. Readers can subscribe as members to access that article for reference. The perpetual securities were selling like hotcakes back in 2016 because investors were lured by the seductively high yield against the backdrop of low bank interest rates. The latest announcement would have left investors in a no-man land as they cannot sell their shares nor the perpetual securities for the next six months.

Given the non-payment of the coupon payment in 28 May 2018, holders of the bond would likely to face some form of impairments on their investments. It is also likely that when the counter reopens in six month time, there might be heavy short-selling or possibility of shareholders dumping their shares, causing the share price to crash.

Hyflux

Investors must be wondering how on earth did the former A-list company come to such a sorry state. But perhaps, the biggest irony out of this corporate fiasco must be that the ones paying the highest price are often those who know the least, and also the last to know. For those who had bought the shares or subscribed to the perpetual securities, this dark chapter will serve as a painful lesson on the need to study the financial performance of the company before parting away with hard-earned monies.

Baptism of fire

For sure, the latest episode marked a [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

Sign up as member and receive a bonus investment report on Singapore stocks! The membership benefits include:

1) Access to the latest premium articles of SG Wealth Builder
2) Email notifications of latest blog articles
3) Access to Wealth Forum for investment ideas and discussion
4) Free bonus investment report
5) Request for coverage on stocks, insurance and other personal financial topics
6) Comment in articles and Wealth Forum

Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.

Monthly Subscription

You may sign up for the monthly subscription for only $19.99 per month. You can choose to cancel the subscription after one month with no penalty.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Magically yours,

SG Wealth Builder

Updated: May 25, 2018 — 1:14 am

Leave a Reply

SG Wealth Builder © 2018 Frontier Theme
Powered by WishList Member - Membership Software
%d bloggers like this: