8/11/2018

Exceptional investment genius wanted!

It would take an exceptional genius to invest in a company that has an accumulated loss of $225b! Why would anyone want to invest $200m into such a company? One possible reason, they did not know, they did not do their homework, or they were duped, conned into spending OPM on the deal.
 

Another reason is that this is the work of an exceptional genius who knew that the company in such huge debt, likely going to go bankrupt, and they are in to pick it up after it goes bust, to restructure and to rebuild it into another new conglomerate. Only an exceptional genius can do this kind of investment and waiting to make a killing by the millions if not billions.
 

Below is such a rare incident posted in theindependent site of Temasek and an English company pouring in $200m in a company that smelt foul but seen as a good buy. Temasek must be waiting to show how profitable this investment is once the dust is clear.
 

I once wrote that it is very easy to dupe a stupid investor into pumping money into a sick company by getting another big investor pretending to have done his home work and willing to invest together with the stupid company, telling the latter it is a good deal. Read this posted in theindependent.
 

“International new wire Reuters reported in April that Singapore sovereign wealth fund Temasek – together with Britain’s Metric Capital – invested $200 million for a 17% stake in Turkey’s Dogus Restaurant Entertainment and Management (D.ream) – a conglomerate that has 42 restaurants to its name….
 

The hyped restaurant chain, however, has drawn flak for being a “ripoff” and has accumulated poor reviews from several customers and food reviewers alike. The New York Post was one such publication that wrote in a restaurant review that the dishes at the “underwhelming” restaurant were “overpriced”….
 

A month before Temasek acquired a sizeable stake in the parent company of Salt Bae’s restaurant, Singaporeans expressed concerns and asked: “How much more money do they have to lose?”
 

Today, these concerns are edging ever closer to becoming a reality as D.ream’s parent company Dogus Group faces severe debt restructuring woes, barely four months after the wealth fund sunk $200 million into its subsidiary.
 

Nasdaq reported earlier this month that Dogus has encountered disagreements with its creditors over how its maturing loans valued at $2 billion Euros or S$3.19 billion should be paid.
 

This $2 billion Euros only represents about half of Dogus’ debt woes. Combined outstanding loans stood at a whopping 23.5 billion lira or S$6.55 billion at the end of last year, climbing by a hefty 11 per cent since 2016….
 

This is especially worrisome given estimates that Turkish businesses owe as much as $225 billion in long-term overseas loans as of April 2018. In the wake of the crrency decline, several Turkish conglomerates are resorting to selling assets or refinancing their businesses to overcome the debt crisis.”
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24 comments:

Avant-garde said...
This comment has been removed by the author.
Avant-garde said...

There is a third purpose why some people intentionally "invest" in a conglomerate, mnc, huge banks that are obviously losing money b8g time. Especially when they are using other people's money.

When you put money into a losing establishment, your money will be gone: lost. That means you want the amount to be recorded in the account books as a "loss", which cannot be recovered.

Secretly, you make a deal with that company (just like money laundering in a casino) that will "lose" your money. They take 30% of your "invested" money and return to you 70% in a secret Swiss bank account which he will open (not under your name) and then he gives you a pin number so that you can withdraw that money anytime anywhere you want.

Get the drift?

Anonymous said...

And then you top it up with more taxes and CPF money....?

Anonymous said...

9.36 am anon,are u looking for trouble for yourself and RB making accusation that u can not back up. U want to be invited to drink kopi is it? Plus risk kena sodomized by African tua kee? bot dont get RB into trouble leh

Anonymous said...

You must be a crony of Mahathir, advertising Soto Mee, the favourite national dish of the elites of Malaysia!

Anonymous said...

With so many comments deleted, the drink kopi fear effect must have taken root. RB must have been given the phone signal already!

Anonymous said...

The bigger the risk, the higher the returns and the bigger the bonuses.

After all, what is lost is other people's money. What is to be gained is fat bonuses. Why not?

Anonymous said...

Daughter of E.W. Barker is deeply offended by the idea that low pay attracts mediocre people. By saying that, Goh is insulting all of the founding fathers of Singapore who took low pay, but had put Singapore on the path to the phenomenal success it has achieved.

Hans Olijve, husband of Barker's daughter, commented in facebook:

My wife, Mrs Gillian Barker, would like to say that when her father went into government in 1963, he took a paycut of something between 70%-80%, but he never regretted it because he believed in public service.

He headed the committee that wrote the Singapore Constitution, personally wrote the document which separated Singapore from Malaysia, headed 5 ministries at different times, was the longest serving Minister of Law in the world, and did numerous other things.

My wife is deeply offended by the idea that low pay attracts mediocre people. By saying that, you are insulting all of the founding fathers who took low pay, but had put our country on the path to the phenomenal success it has achieved. Their sacrifice, our gain.

If they need an excuse for high pay, perhaps one that doesn't insult the people who came before them might be a better alternative. What happened to the concept of public service? If money is what you want, then go out into the world and make some. Government should be about the people you serve.

Anonymous said...

Yeah! A reminder to the PAP elite - "Government should be about the people you serve."

Not with a sense of entitlement raking in, as salaries, millions in taxpayers' money.

Anonymous said...

Woody offended all the founding fathers with his remark. Is he saying that the founding fathers are mediocre people because they are paid low salaries?

Woody is really senile and spouts lots of nonsense. All his unquotable quotes like 'goal 2010', 'Swiss standard of living, 'More good years' are fairy tales that can only come from his list of long tales.

He was the one who started the million dollar minister's pay scheme, and still wants it to escalate, and like Mahathir, who is refusing to bury his loss making car manufacturing schemes and wants to invest further into his failed pipe dream.

Anyway, his words carry little weight. His pronouncements nowadays are of little substance but only hot air.

Anonymous said...

“ You are not leaders. You are monsters ”

https://www.theonlinecitizen.com/2018/08/10/ord-letter-you-are-not-leaders-you-are-monsters/

Anonymous said...

@ 10:33 am

"9.36 am anon,are u looking for trouble for yourself and RB making accusation that u can not back up. U want to be invited to drink kopi is it? Plus risk kena sodomized by African tua kee? bot dont get RB into trouble leh"

9:36 am is not acusing anyone. He is just merely stating a reason why some people may want to invest in a company that is making a loss.

Your brian must be senile already, due to getting your backside screwed too many times?

Or, may be you are looking for trouble yourself? You need to be sodomized?

Chua Chin Leng aka redbean said...

Comment deleted

This comment has been removed by the author.

August 11, 2018 9:33 am

Please note that a comment like the above is deleted by the commentator himself and not by me/RB.

When I delete a post, it goes without any traces. When I have time I would delete such deleted comment. This one I leave it there to explain that this is not deleted by me.

Anonymous said...

12.53pm, I wish you all the best. If u want to escalate any accusation without backing, surely one day u sure Kena. Please bring a tube of ky jelly with u at all time as your character likely will Kena type. Suay suay if just invited to drink Kopi not so bad till u get detain overnight then put together with sex stave African Tua Kee, then Kena sodomize till can not walk then u know and don't blame people. The ky jelly is to help u to lubricate your ass to reduce friction so it's not so painful for your ass when the Tua Kee enjoying themselves at your expense. Also if u think u can close your mouth with your hands, well bad news for you as the Tua Kee will also stuff their rods into your mouth. Unfortunately in this case, the ky jelly can not help you lor.

My advice is to contribute factually and in issues but not to Attack them till you Kena cause you have no evidence. I pleading with you for your Wife sake, refrain from such extreme action. Learn from RB, he only Attack the issues not the persons.😀😀😀😰😰😰😂😂😂

Anonymous said...

Both Turkish president Erdogan & Trump has fucked the Turkish lira currency. Erdogan has also fucked the Turkish economy by his voodoo economics and by installing unqualified cronies & relatives into govt. E.g. son-in-law as finance minister.

Turkish companies are owing billions in USD and Euro, while they are earning in shit lira that is getting shittier by the day.

Another Venezuela Part 2.

But good for people like me ..... as this Turkish Contagion is resulting in knee-jerk sell offs and mini-crashes in stock markets around the world. GSS for me over the next 2-3 months!

Anonymous said...

"Please note that a comment like the above is deleted by the commentator himself and not by me/RB."

Hi Mr RB, how to delete our own comment? Tried but couldn't find anything to click !

Anonymous said...

Right, how to? I suppose only those with domains can do it.

Chua Chin Leng aka redbean said...

I think you can only delete your own post if you use a nick. Using anonymous may not have this facility. After all anonymous is anonymous. No one knows who you are, so no need to delete your own post.

Anonymous said...

@ August 11, 2018 1:54 pm

If the hat fits yoi, put it on. Looks like you have demonstrated that the hat really fits you beyond any doubt?

Chua Chin Leng aka redbean said...

I just deleted 10.07pm post.

See, no trace whatsoever.

b said...

Hillary: “Just promise the cheating will end ... ”

Bill: “You have my promise. You know that I am honest, 110 per cent.”

Hillary: “But how can I know that’s true?”

Bill: “Would I ever lie to you?”

In lines which could easily have been stolen from Macbeth, the 37-year-old Hodge – dubbed by some the “baby-faced assassin” - opened this week's hearing with a powerful soliloquy, posing the central question: “What happens when we leave these trustees alone in the dark with our money?”

Same drama happening in Australia $2.6T Super funds. At least most still pay more than 5% return unlike the 2.5% return from CPF.

Anonymous said...

9.40 pm, it's better u heed his advice cause if u Kena, you Wife will be very lonely

Ⓜatilah $ingapura⚠️ said...

@ RB

Aiyah, relac lah brudder. As you know, not every investment can "jalan". Sometimes, despite all the "research" you do or pay for is for nothing, and you buy a dog which will burn you and your money.

Finance world is full of mistakes, system-gaming, bullshit and sheer arrogance of people who believe they are "right" all the time. Even when they lose money, they shift the blame somewhere---anywhere, just to try to get off the hook.

Nicholas Nassim Taleb's latest book is called Skin In The Game; which is all about risk. When risk is not shared by the people who allocate capital and resources, they are bound to be more reckless, careless and even criminally negligent. When the GIC or Temasek lose money, none of the officers and managers of those entities lose one fucking penny. They do not have skin in the game.

So rest assured, there will be more instances of this type of recklessness and "casino betting" by fuckers supposedly in-charge of deploying "investment capital" of the national financial resources.

Anonymous said...

The guy with the colourful hairdo and red nose is saying thank you.