Hyflux Preference Shares

[Tinydog]

As topic, is it a good buy? And then how to apply for it ah? Thanks!

[1fast1]

Well, I applied for some. You can do it through DBS iBanking if you have a linked CDP account - the ESA (Electronic Securities Application) link on the left panel.

 

Presumably, you can also apply through the ATM.

 

6% dividends till 2018, when it's callable (at the par value of 100), but if they don't exercise the option, they pay 8% from then on.

 

Preference shares are perpetuals, so they're not capital protected like a true bond, but they generally give better yields (6-8% is similar to good stock dividend yield). You can be fairly confident of reaping this dividend, because they *have* to pay this dividend before they can declare dividends on ordinary shares (which Hyflux has done without fail to date).

Edited April 17, 2011 by Turboflat4

[Zangetsu77]

Don't be attracted by the high yield unless you are a believer in Hyflux. In which case, you really ought to hold more parent shares than the preference shares, and use the preference shares to balance your parent share portfolio in terms of overall yield from Hyflux investments. The capital gain on the parent will certainly exceed the dividend returns if the company does well. Water requirements in China are undoubtedly quite real, and i won't be surprised in time to come that water futures are traded globally like any other commodity.

[Yaloryalor]

As topic, is it a good buy? And then how to apply for it ah? Thanks!

Quite safe to buy and it's offering 6% dividend. Higher than what DBS preference shares has offerred (4.7%) few months ago.

[Picanto]

7 yrs is too long?

[Eyke]

7 yrs is too long?

 

u can sell it after one day if u prefer since it'll be listed and traded on SGX

 

 

[Tinydog]

Thanks guys for the inputs. I personally hold some parent shares of Hyflux and I do have confidence of the company's performance (in the long term though). Just that I am skeptical of holding this preference shares or rather buying more of the parent shares.

 

But probably 6-8% is a rather good yield. Thanks guys!

[Chemmie78]

personally i balloted for some...and you can read the intelligent investing by benjamin graham on the valuation of preferential shares....

[Throttle2]

So how are you guys doing with your hyflux pref share

[Kusje]

wah. you like to rub salt eh?

[Mustank]

I know my own problem

Like to buy, hate to sell, hoarder

So I never buy

[Unltd]

Hahahaha.....

[Matrix0405]

SGX still have not throw Olivia in jail? Ask ppl to buy bonds, company need the money yet she draw a lot from the fund raised from the bonds. 

[DACH]

SGX still have not throw Olivia in jail? Ask ppl to buy bonds, company need the money yet she draw a lot from the fund raised from the bonds.

Why jail leh?

ST still post an article about her life big big on the papers last weekend.

[Angcheek]

Brave man ... how many yrs to hold shld also be included in ur roi.

 

They are not out of danger yet u know . Any time can chapt 11.

[Angcheek]

I know my own problem

Like to buy, hate to sell, hoarder

So I never buy

Same w me ... whenever i touch something soft soft round round bouncy bouncy

I hate to let go

[Cheesey74]

SGX still have not throw Olivia in jail? Ask ppl to buy bonds, company need the money yet she draw a lot from the fund raised from the bonds. 

 

Obviously, u r oblivious of the risk one undertaken when buying shares n bonds.

 

If like that just throw her in jail, nobody will dare to list in our SGX liao.

[Victor68]

As topic, is it a good buy? And then how to apply for it ah? Thanks!

 

8 years down the road, bad buy  I thought there were also questions raised, how on earth CEO collect more than $1 M when company is doing so badly. Who sits on the board and approve this?