4/01/2019

Hyflux, caveat emptor or someone should be held accountable?

“We have not lost faith. If we all vote no, maybe MAS (the Monetary Authority of Singapore) and the SGX (Singapore Exchange) would step in and investigate this. It’s time for them to take over to see if there was any misrepresentation of information,” he said.
Another perpetual securities and preference shareholder, who wanted to be known only as Michael, told CNA that he thought MAS should have stopped Hyflux and the local banks from selling the perpetual securities in 2016.
“MAS should have stepped in to investigate overzealous selling by the banks because the banks were paid a sum to sell these shares and got a substantial amount of commission,” said Michael, who invested around S$10,000.

Read more at https://www.channelnewsasia.com/news/singapore/we-have-not-lost-faith-hundreds-of-hyflux-investors-gather-to-11395566

The above are angry comments from desperate investors in Hyflux preference shares and securities that have turned to dust at a protest in Hong Lim Park on 30 Mar. Tan Kin Lian was the main sponsor of this event organised by an investor by the name of Alex.  Some of the investors, these are not speculators but people who sought to place their savings in supposedly safer securities hoping to earn some kopi money for retirement, felt that the whole affair is very unfair to them. This is another case of the rich getting richer and the poor getting poorer. Millions were made by some while the small investors lost their nest eggs. 

Another comment was that the plants were built by funds from small shareholders and that it was unfair for PUB to announce taking over the Tuaspring desalination plant for a song. The investors were hoping that PUB would pay for it at a fair value so that the investors would not lose every cent of their investments. 

The investors must all be wondering why, why is it that no one is held accountable for this fiasco? The management of Hyflux were paid very well running the company, the banks were paid very well issuing and managing the preference shares and securities. They felt that someone did not do his due diligence. Is this a fair view, that when something so good turned so bad, and no one is responsible or held accountable?

Another case of caveat emptor? Is there any investigation going on to apportion responsibilities? An estimated 50,000 investors would see their investment in Hyflux turning to zero value. This is the beginning of the opening up of old wounds and suppressed anger of small investors losing their savings in the stock market because of the abundance of failed stocks, delisted stocks, suspended stocks, stocks where owners simply ran away and disappeared. No room for grievance settlement or to recover some of their investments.

When the dam bursts....

41 comments:

Anonymous said...

Nowadays Singapore is like that lah, sad . . .

Anonymous said...

Mr Redbean Chua "Another comment was that the plants were built by funds from small shareholders "




In the 1963 and the 1980 Fullerton lunch time GE rally, PM1 said he did things for the "GREATER good" mah?

According to such philosophy or political belief first advocated by English philosopher Jeremy Bentham, as lo(ooooo)ng as the great majority interests are taken care of, the sacrifice of the minority is essential and should be condone?

In this case, Kee Chiu already said in paleemen 2 to 3 years ago that water is "EXISTENTIAL "?

So the 2.3 or so foreign "talents" and PR "locals" new to drink, shower and shit what... ?

The ah NEH construction workers need to use the hose to shower mah after working one whole day?

So what is the sacrifice of 50,000 oldies egg nests to build the water plant for the "GREATER " good of the 2,300,000 foreign "talents " to enjoy every drop of water from the plant?

The ah NEH workers after pang sai need use water spray to wash mah?

It is for the "greater good"?

No?

Case "closed"?

Anonymous said...

Big fish eat small fishes.

One huge powerful thick-skin whale simply swallow 74,000 small fishes but still not enough.

It claimed by contract law (their law), Highly Fluxed has to pay penalty.

Very kindly, the Big Hungry Whale waiver the penalty charges, otherwise the takeover is not at Zero cost but Negative Cost. Meaning, instant profit! This kind of durian "pao chia" kind of deal very common in Sinkieland lah!

What's wrong with collecting more money?

What's wrong with using a piece of paper to make more money?

What's wrong with exerting my authority over you and convert your money to become not your money?

Is this the first time? No. It had happened before, several times already. And this will not be the last time.

Wake up lah.

Anonymous said...


Hi 836am

you are 1o8% correct!

sg is like that liao!

you nust ownself chap ownself

because you die your business

cheng-hu bo-chap lah!

feel very very sorry for retail investors

everyone else laughing laugthing laugthing to their banks

the retail investors are crying...............

this is life.....sometimes if not careful can be "gong-kai"!

but....again.....the 6% was very attractive at that time.....but......but......

what to do........this is life.........

sg is really like that liao...................


Anonymous said...

@ Anonymous April 01, 2019 9:25 am
///Big fish eat small fishes.

One huge powerful thick-skin whale simply swallow 74,000 small fishes but still not enough. ///



In terms of the "greater good" principle practised , what is 50,000 or 74,000 or 100,000 minority small retail sinkie investors compared to the 2,300,000 foreign "talents" and PR "locals"?

The ah NEH workers under sweltering hot sun need drink water man?

They need send every cent saved back home lor so their families can have better life, send their kids for good education preferably till university and get out of poverty trap mah?

If their kids graduated eventually, then can become new foreign "talents" what to become the new PMETS in sinkieland?

Good what?

The G said many times foreign "talents " create jobs for sinkies ?

To drive them around as ride hailing drivers and protect their condo enclave as soocurity guards mah?

Sounds goooooood?

So the water plant paid by small time sinkies OK lah din go to waste lor?

The ah NEH workers very cham so thirsty they can bring their empty mineral water bottles to top up tap water foc in public toilets mah, if not under the hot weather they kena heat stroke or dehydration how ?

Laogoa said build a gracious society and must show care and gratefulness mah?

What's wrong taking care of the foreign workers?

What's wrong correcting more $$$ (from sinkie oldies)?

Anonymous said...

Anonymous 10.19am. There is nothing wrong taking care of FWs! There is oso nothing wrong collecting more $$$$$$$$$$$$!

Nothing wrong! Perfectly ok!

Hahaha....

Anonymous said...

@ Anonymous April 01, 2019 11:29 am
>>>Anonymous 10.19am. There is nothing wrong taking care of FWs! There is oso nothing wrong collecting more $$$$$$$$$$$$!

Nothing wrong! Perfectly ok!

Hahaha....<<<



Aiyo

Anonymous said...

9.25am //What's wrong with using a piece of paper to make more money?//



According to anon 11.29am comment, there is nothing wrong?

Anonymous said...

74,000 lost their money ($800 million) just because of one person's greed?

Simply by decree in the shit name of "For Greater Good", walloped up people's hard-earned money just like that? No morals, no ethics, no conscience, no consequences?

Politically, converting to number of votes, in the name of "for even greater good", that works out to 740,000 votes, based on 1 will influence 10 (1 spouse, 2 children, 2 fathers-in-law, 2 mothers-in-law, 3 others).

PAP sure win? 70% again? Or even 80%?

Arrogance, over-conference and over-doing things are the signs of a definite downfall. Only time will tell.

Anonymous said...

Correction: "over-conference" to read as "over-confidence".

Anonymous said...

Can see the pattern?

Anything to do with water "eat grass" liao?

Despite surrounded by water still no go?

Means sthg drying up le?

Now Qing Ming at least still have some rain?

From 15 Apr onwards, abt 5 hottest and driest months ahead... ?

Will sthg give way?

Chua Chin Leng aka redbean said...

We are surrounded by water and have rainfall the whole year round, why should there by water shortages?

The reason, we created the water shortage problem by increasing the population beyond sustainable number. It is a self inflicted problem, like digging our own graves.

Anonymous said...

Hi 1213pm

Very likely 75%**

What say U?


Anonymous said...

If you can understand what is perpetual securities, can you be said to be totally ignorant about investing? If you are totally ignorant, stay away from all these and don't be greedy.

I learned the hard way and I lost much money in the past too, but I blame myself for being greedy as well. I now stay away from the kitchen because I cannot take the heat.

One thing for sure is do not ask the Government using taxpayer's money to bail out those who got burned.

Anonymous said...

Anon 12.13

You forgot that Sinkies love sodomy. They are used to that. I believe that out of the 74,000 or 740,000, not more than 30% will vote opposition.

Singapore is like that as someone like to say.

Anonymous said...

@ Chua Chin Leng aka redbeanApril 01, 2019 12:42 pm
>>>We are surrounded by water and have rainfall the whole year round, why should there by water shortages?

The reason, we created the water shortage problem by increasing the population beyond sustainable number. It is a self inflicted problem, like digging our own graves.<<<



Uncle Chua,

Already mentioned many times in MSN that Botaknomics and Laogoanomics are essentially one-trick pony using population growth to drive the GDP (+ some band aid stop gap measures from time to time to pull wools over the sheep eyes? ) and devoid of knowledge of new ideas nor new concepts how to achieve sustainable and long term economic growth as well as well-being for the masses?

But so far many still think (including in msn) that Botaknomics would fit sinkieland like fingers into gloves and the rightful successor to Laogoanomics?

What happened now?

Would Botaknomics be able to salvage the overturned retirement egg nest of the unfortunate or "misled" small time sinkies or was it actually the cause?

If Botaknomics is touted as sound as it was made out to be, why do you even need to keep lamenting from time to time about the moribund state of the stock market?

Also how about NOL?

If Botaknomics works, how come even with the overwhelming comparative advantage of the most strategic geographical location world-wide with at least 40% of global trade trespassing its port and an economy transacting trillions in annual trade, NOL was run into the ground with billions of taxpayers $$ and saving to backstop it and finally disgracefully disposed of only for the new buyer to turn it around almost immediately and made a profit within the first year?

You are in the stock market and should know about the finances and health of companies? If NOL was so bad how could the new buyers turned it around so fast?

Thus even with good assets such as a crown jewel, under Botaknomics they were lost (unnecessarily) and now with this saga Botaknomics scuttled off "with tails between his legs" and "pretend no hear no see"?

No point make rhetorical motherhood speeches or just simply act blur keep squeaky quiet with total silence (but correct more $$$ FAT millions pay cheques and bonuses at taxpayers' and oldies' expense)?

What is Botaknomics all about?

GST helps the poor?

What is wrong correcting more $$$?

You die your own business?

Clap clap clap?

Well done?

Let us all kneel down, kow tow and shout "wan sui wan sui wan wan sui " to Botaknomics?

Anonymous said...

The whole system is fixed and rigged to benefit only the top few who engineered and schemed everything, from cradle to grave.

Nobody else can be the wiser. Nobody else can win.

Anonymous said...

@All,

That's why I say invest in War Stocks lah!! Kill others before they kill you!!!

And earn $$$$$$$$$$$$$$$$$$$$$$$$$$$ in the meantime! Shiok!!!

16 years of War Stock ETF!!

Not counting the dividends some more!! :)

Anonymous said...

The whole system includes the whole world and not only Sinkieland. The global 1% will always be the winners. The other 99% will forever be losers, give and take a few that managed to beat the system.

No use trying to change whatever is already unchangeable or being con into believing that change is on the horizon.

Anonymous said...

@ Anonymous April 01, 2019 1:22 pm
///One thing for sure is do not ask the Government using taxpayer's money to bail out those who got burned.///



Whose $$$ billions were used to bail out/ backstop NOL before they finally capitulate and dispose it entirely?

Their own retirement savings accounts?

Anonymous said...

Uncle Chua //The above are angry comments from desperate investors in Hyflux preference shares and securities that have turned to dust at a protest in Hong Lim Park on 30 Mar. //



It is unfortunate.

Physically a few hundred may appear to be there to the average naked eyes?

But how about to those with "super natural eyes"?

What did they see?

How many more "thousands or tens of thousands were there" not visible to naked eyes?

After all, this is Qing Ming.

The ancestors could be worried how come their families didn't turn up to clear the overgrown grass and lalang around their cemetery?

How come didn't offer them anything so far?

How come become so broke?

Such thing could have far reaching rippling effects (not only on earth but in heaven and hell too)?

It could affect the "standard of living" of the ancestors in the "other world "?

For those who saw their egg nest investment turned "into dust" and cannot be eaten or have any value any more, they may be too distraught/ heart broken or too broke to break their piggy bank and dig out a few more hundreds to use for their ancestors worship during this Qing Ming?

The ancestors may have braved a turbulent journey and weathered thousands of miles to reach peesai once a year during Qing Ming period and now some may have to face the prospect of returning to the nether world "empty -handed" in this year Qing Ming?

Can Jeremy Bentham's anachronistic moral reasoning of "greater good" and "maximum happiness for maximum number of people being more important than the pain suffered by the aggrieved minority" conjure any sense of natural justice prevailing in this modern world or it is not much different from the backward civilisation few thousand years ago or even the prevailing tribal system in the deep jungles of the Amazon or the desolate deserts of the sub Saharan Africa?

How can all the aggrieved parties (including their affected ancestors) have a fair and just closing to their misfortune and plight?

Will there be karma eventually?

Ⓜatilah $ingapura⚠️ said...

@ lose money lah

When you risk capital, there's always a chance of loss lah.

Get over it already.

Anonymous said...

@anon 3.25pm.

Dun worry as KJ said b4 " U all got the Garmen u deserves so dun kpkb liow"

Not to worry the Other Worldly Beings when they return empty handed they will report to the Other Worldly Gods ( namely YanLuo Wang) that they received nothing during their trip this year, The Other Worldly Being God Investigators shall be sent to Sinkieland & justice shall be served base on the Universal Law of Karma, if heaven got eye, Sinkieland shall see many things about to happen ( eg fallen trees, strange weather, fires, strings winds, transport mrt breakdown, strange virus diseases, plagues, unusual freaky Election Phenomenon etc.), let's wait n see..

Goldfinger said...

Don't buy stocks. Buy gold and yuan.

Anonymous said...

Anonymous April 01, 2019 12:13 pm
//74,000 lost their money ($800 million) just because of one person's greed?//



According to the value of the two perpetual and preference share tranche subscribed via ATM in 2011 and 2016, mostly retirees formed the bulk of the S$900 million raised with some ah kong and ah ma retirees shelling out as much as 5 figure sum amounting to as much as $200,000 each.

Like that very JiakLat and heart breaking ?

If include the more than quarter billion medium term notes issued, total already far exceeded $1 billion ?

The US long term T-bonds offer near 3% yield and medium term T-notes around 2.5%

Somemore strong dollar and high in demand 101% liquidity, no suspension at all?

6% to buy a "high risk" corporate bond?

Does it make sense?

20% also probably not enough (risk) premium?

Next time good to learn some simple microeconomics basic concepts such as choice over uncertainty to calculate the expected value and at what risk premium would be a fair value before taking the plunge?

Leylo(oooooo)ng Leylo(oooooo)ng free eCONomics lessons with free abaline porkrage (thrown in) to learn the "tricks" and avoid investment "traps"

Any taker?

Anonymous said...

@ Anonymous April 01, 2019 12:13 pm
//74,000 lost their money ($800 million) just because of one person's greed?//


5 April is "D-Day"?

4 April is actual Qing Ming Day

How are the aggrieved perpetual and preference shareholders going to tell their ancestors on 4 April at the cemetery?

Traditionally some go there as early as 4am to avoid the crowd?

Would this year be different (due to the latest saga)?

If really broke at least buy 2 candles and one small incense pack will cost less than the bus trip to the cemetery?

Like that the ancestors also dun "feel" so grief and won't kachiao their families ?

Overheard some oldies at coffee shop said recently their flats at night a lot of noise outside their room?

Anonymous said...

@ Anonymous April 01, 2019 3:43 pm
///@anon 3.25pm.

Dun worry as KJ said b4 " U all got the Garmen u deserves so dun kpkb liow"

Not to worry the Other Worldly Beings when they return empty handed they will report to the Other Worldly Gods ( namely YanLuo Wang) that they received nothing during their trip this year, The Other Worldly Being God Investigators shall be sent to Sinkieland & justice shall be served base on the Universal Law of Karma, if heaven got eye, Sinkieland shall see many things about to happen ( eg fallen trees, strange weather, fires, strings winds, transport mrt breakdown, strange virus diseases, plagues, unusual freaky Election Phenomenon etc.), let's wait n see..///




Uncle Patriot,

Qing Ming weather like that one.. .Often rains and rains heavily and for very lo(ooooooo)ng?

Sky also dark dark gloomy gloomy?

Also tend to notice more funeral wakes in Qing Ming period and during ghost month at HDB flat void decks?

If karma ripe very fast the cow and horse will pay visit le at night during sleep?

But the Chinese have one saying:"If do no wrong middle of night the spirit banging the door or pressing the door bell incessantly if stay landed property also no fear at all"?

Was passing by a GCB area at 2am+ this morning after meeting a friend. Got one stretch the dogs barked until like howling werewolves like maciam saw sthg ... The elders used to say the dogs must have seen sthg that is why barked until like howling wolves?

Seldom dogs howl like that unless see those kind of things?

The dog eyes supposedly "shines" at night like fireflies that is why if in a dark jungle cannot see the wolves body but can see its eyes and can tell the wolves down there?

Dunno why the dogs barked until like that this morning at 2am+ along a GCB area .....

Quite disturbing actually and all the hairs literally stand up and can feel a very cold chill in surrounding area maciam sub zero temperature in China NE provinces during deep winter?

What can it be?

Who were the tinkies "visiting" in that area?

Anonymous said...

@All,

The 34,000 are dreaming if they expect any help. They keep asking govt to help without realising what is NATIONALISATION --- confiscation without compensation, or at most give you a few cents.

The only way for even the issue to be examined is for all 34,000 to commit suicide at the same time in public on Fri 5 Apr.

I doubt any single one dare.

Ⓜatilah $ingapura⚠️ said...

@ crybaby assholes who don't take responsibility:

Attribution Bias: When stock/ security/ asset goes up, they feel so "superior" that their judgement is so much better than all those "inferiror idiots", that's why they make so much money.

When stock/ security/ asset plummets and dies, they still feel "superior" but it is the fault of evil people or idiots that caused the value-crash and caused them to lose money.

Fuck them all lah. 🤣 Yaya papaya motherfuckers

Anonymous said...

"Angkor" Maltida,

How is the cheap food in the canteen on Monday?

Are you going back on Thursday to eat the cheapest mutton Biryani in the canteen there?

The next day 5 Apr u can go for the voting session usually got "free" refreshments which the typical PG and MG often chiong first one in the queue and sapoo as many plates as their hands can manage?

Cheers.

Enjoy the cheapest Biryani in town this Thur and also the free refreshments the following day at the voting session.

Anonymous said...

34,000 disgruntled investors will vote against PAP this coming General Election.

But 34,000 new citizens will vote for PAP, therefore nullifying the effect.

Ⓜatilah $ingapura⚠️ said...

@ don't try to be funny, you suck at it 901

Eh kotek, I'm vegetarian lah. You eat the dead sheep lah, enjoy! 🤣😂

Anonymous said...

It's 74,000, not 34,000.
The 34,000 are preferential share-holders. The other 40,000 are ordinary share-holders.

The 74,000 share-holders have families. Members of their families may also vote against the PAP Government because of solidarity and loyalty, especially so if the "cheated" share-holders are sole bread-einners.

Anonymous said...

Matilar, now you have attracted this anon who is going after your ass. Suggest you meet him and sodomize him first to cure him lor😀

Anonymous said...

@ Anonymous April 02, 2019 5:32 am
///It's 74,000, not 34,000.
The 34,000 are preferential share-holders. The other 40,000 are ordinary share-holders.

The 74,000 share-holders have families. Members of their families may also vote against the PAP Government because of solidarity and loyalty, especially so if the "cheated" share-holders are sole bread-einners.///


Part 1:

According to some media report, one elderly couple shelled out almost $600,000 during the $400 million first tranche of preference share offering in 2011?

Then in the 2016 $500 million perpetual bonds/ securities offering, they plonked down another almost $200,000?

Both are as old if not much older than uncle redbean?

They told reporters that they saw the 6% yearly returns (abt $40k per year, $3k+ per Mth) covering their daily expenses, monthly medical needs, festive seasons etc.

$3k to cover everything including costly medical expenses at their age of late 70s/ early 80s is definitely not those frivolous or decadent people but likely extremely frugal and cautious simple retirees counting on every cent and dollar of their savings and retirement egg nest?

On Fri 5 April, they are given two options:

1) Vote "No" and risks walking away empty-handed cos then liquidation likely kicks in and by the time the claim come to their turn, probably "an empty food tray" will greet them and they will be left with nothing holding an empty plate looking at empty trays maciam those events the organisers under catered for the food and ran out for those at the back of the queues?

When those at the back reached the food counters, the food are all gone and what faced them are empty food trays with practically nothing left? Not even a bit of parsley or sliced cucumbers meant to adorn the food to make them look nicer? Alas, even decorative adornment greens also gone?

"Choice" #2: Vote "Yes"
This one if translated using the above scenario means that right from the start the management very "kind and thoughtful"? The perpetual securities / bonds holders and preference shares holders no need to join the lo(oooooo)ng food queue but just go to a special ("food") counter reserved for them?

Sounds (very) good?

Here is the catch.. .

The food are "RATIONED" and the amount (of food) given (probably) a fraction of what was given out FOC during the 1929 Great Depression outside welfare bodies run soup kitchen when each person is given a bowl of soup with a sizeable dough or bun. This special queue unfortunately is NOT so "generous" as compared to even the 1929 Great Depression free soup kitchen? For each holder, they will get only 3% of a bowl of soup (3% of retirement egg nest amount invested)?

Imagine if one bowl of soup is equivalent to 20 spoonfuls of soup, 3% technically means less than half a spoon of soup lor?

To the elderly retirees who invested their egg nests and so varnished and hungry and starving and their three meals depending on the returns but only given "less than half a spoon of soup for every bowl of soup they invested (3%(.

With trembling hands after receiving the soup (if they voted Yes), should they go to a corner and cry their hearts out or swallow down the half spoon of soup offered to them in TOTALITY (for every bowl they invested) ?


To be cont'd ...

Anonymous said...

Part 2:

Old people so old liao never beg never ask for free but worked whole life and their retirement egg nest now every bowl become half spoon of soup (3%)?

Live until so old then their retirement egg nest every bowl now become half a spoon and at this age to have only half a spoon of soup for their lunch or dinner (for the remaining years of their lives)?

You think the retirees hearts aching or not?

And many of them are PG and almost the rest are MG?

After one whole life time building the nation and enriching 2.3 million foreigners and PRs with good jobs, they are faced with and staring right in front of them half a spoon of soup to "eat" for a meal (for every bowl they invested)?

Probably the only emotion for any normal human beans at that age much less elderly PG and MG is for tears to stream down the cheeks until run dry and tears turned into blood (when faced with such prospect on the fate of their lifetime retirement egg nest)?

Nowadays if elderly people dunno much better dun anyhow believe others and "anyhow " invest their retirement egg nest or quah cha png?

Deposit $50k in each bank better cos have SDIC?

$800,000 with compound interest should last about 30 years based on the old couple needs of about $3k per month (as mentioned in Part 1 above)?

They already so old liao 70+ to early 80s?

Unlikely they will "outlast" the 30 years of steady stream of average monthly $3k deposit funds?

Some elderly couples are known to survive on abt $1k+ per month so $3k per month may even have some surplus saving for some of the months?

For elderlies or unsophisticated or unaccredited retirees, not to say cannot buy government bonds or corporate bonds but need to monitor and know a lot of stuff going on around the globe these days?

Can the elderlies cope or not?

So olds liao still need to learn about Monetary Economics or Mathematical Economics or Industrial Organisation Economics siong or not?

The fate of bonds are subjected nowadays to the vagaries of government policies worldwide and business cycles which are rigorous subjects of short term, medium term and long term macroeconomics?

Also for current topic, oldies would need to know quite a fair bit of microeconomics in areas of market structure, uncertainty/ risks, asymmetric information etc?

What is asymmetric information?

Remember Nobel Prize Laureate Economics Professor George Akerlof? Husband of former Fed Chairwoman (2013 to 2018) Economics Professor Janet Yellen?

His famous economics publication on Lemon Law in 1971?


Sg version (2009) of the Lemon Law is CPF(T)A which stands for Consumers Protection (Fair Trading) Act (Chapter 52A) ?

Correct?



To be cont'd ...

Anonymous said...

Part 3:


Alas, if you are a young graduate and after some years working, decided to buy a car but what was delivered to you was say 10% car and 90% functions like a lorry? Like that fair or not?

In microeconomics this is called an economic transaction involving asymmetric information causing market failure if there is no government intervention and the whole market will break down eventually?

In the insurance sector, the conglomerates are well protected. In motor insurance, they have a clause worked in known as deductibles or excess or sometimes generically known in medical insurance as co-payments?

Why?

Bc AI (asymmetric information) exists mah and the insurance companies will lose $$$ and go bankrupt and close down and whole market will collapse and total market failure results?

So government intervenes lor? (to protect the conglomerates)?

If you invested in a water plant but after a few years it became 90% (revenue) a power plant (and only 10% revenue a water plant), is there asymmetric information existing at the point of the transaction?

In other microeconomics concepts, unaccredited elderly investors using their sole retirement egg nest may also need to know the following?

In 5 or a few years time when the plant is built and revenue come on stream, will the company be fighting as a monopoly, duopoly, oligopoly or in a monopolistic competition market?

With policies changes and liberalisation of the power supply sector, market conditions such as future prices are subjected to global demand and supply especially in the energy market?

The retirees thought they were investing in a water company but in essence a power company cos the CEO said in town hall meetings revenue from power segment constitutes 90%?

So if water component only 10% revenue and power 90%, is this essentially a water or power setup?

In such a proposal, there are so many uncertainty/ factors that will affect every single projection and the appropriate risk premium has to be priced in?

If the setup is power and NOT water, then this is a different ball game?

Who are you competing with?



To be continued ...

Anonymous said...

Part 4:

With the shale oil industry in the US even bringing huge OPEC producers like Saudi Arabi to their knees, way back in 2009 Obama already invested heavily subsidising about more than half a trillion USD in new shale oil mining technology. By 2011 to 2012 the US was close to churning 10 million barrels of shale oil per day which eventually partially led to the global oil market price crash starting in Jun 2014 and reached a low of US$27 per barrel in Feb 2016?

In 2016, in the whole year the average price of oil was not more than US$30+ to 40?

Saudi Arabia foreign reserves dwindled from US$700 billion to about US$400+ billion within two years bc of the global price plunge, though the market price was way above their marginal cost of oil production of less than US$10 per barrel, Saudi Arabia needs oil prices to be in the high 70s to balance their budget?

In this case, during the 2016 $500 million perpetual securities / bond tranche, did the retirees read up or even know or have the capacity / ability to read up/ understand etc about what is developing rapidly in the world oil market since 2009?

By end 2014, the Russian Rouble crashed by more than 60% against the USD and they had to raise interest rate to more than 17% to defend the Rouble as more than half a trillion Russian foreign debts were in USD?

Can a 90% (revenue) oil play perpetual bonds in 2016 with a coupon rate of 6% be a safe or sensible investment to buy with the oldies Quah Cha Png?

Are the unaccredited or unsophisticated retail retiree bond buyers in a position to understand the risks or be aware of any potential ("hidden" asymmetric) information that are material (at the point of the transaction)?


Aiyo ... JiakLat, late for lunch appt liao ..... TTYL

Cheers.

Good luck.


PS: Disclaimer - The above Parts 1, 2 and 3 are just personal opinion and observations. In no way they are to be taken as any advice or recommendation or suggestion. Any decision made by anybody are taken at their own risks.

Anonymous said...

Typo

Should be

PS: Disclaimer - The above (Part 4) and Parts 1, 2 and 3 are just personal opinion and observations. In no way they are to be taken as any advice or recommendation or suggestion. Any decision made by anybody are taken at their own risks.

Virgo49 said...

Hello Anon Scholar.

Shame gonna charge you Pioneer first scapegoat on FAKE NEWS.

Truths always hurt. Their News Real News Others Fake News.

Time for another round of Roulette.

Cheers

FAST LOAN OFFER whats-App +918929509036 said...

Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius, call/whats-App Contact Number +918929509036 via email:(urgentloan22@gmail.com) Thank you.