The email address in "Contact AK: Ads and more" above will vanish from November 2018.

PRIVACY POLICY

FAKE ASSI AK71 IN HWZ.

Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

Archives

"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

34,453,673

Financially free and Facebook free!

Recent Comments

FakeZeroCool commented on 1q 2025 passive income ocbc and alibaba: “Hi AK, thank you for sharing your thoughts. I am new here,…”
Jin_San commented on 1q 2025 passive income ocbc and alibaba: “Dear AK, I enjoyed reading your blogs and YouTube series,…”
Hongjin commented on 1q 2025 passive income ocbc and alibaba: “How do you encourage retail investors who are not equipped…”
mitchell commented on 1q 2025 passive income ocbc and alibaba: “Clct financials getting worse and worse every single year.…”
LZ commented on 1q 2025 passive income ocbc and alibaba: “What DCF do u usually used for Alibaba, AK? i'm using…”
TH commented on srs portfolio in 2024 what did i do: “Hi AK, I have hit the max tax relief of $80k. Does it still…”
HappiSnoey commented on 1q 2025 passive income ocbc and alibaba: “Hi AK, hang in there! It will all pass… ”
fisher commented on 1q 2025 passive income ocbc and alibaba: “Take good care of yourself AK and look forward to happier…”
MPC commented on 1q 2025 passive income ocbc and alibaba: “Hi AK,Previously you mentioned that you may buy ireit at…”
Ss commented on 1q 2025 passive income ocbc and alibaba: “Dear Ak, Thank you for the post, truly appreciate it. Your…”
tzl commented on 1q 2025 passive income ocbc and alibaba: “Made a shopping list waiting to buy various stocks! Pls…”
Shaun commented on sold alibaba for 51 gain: “Hi Ak, I understand you are bullish on Wilmar given how…”
Shaun commented on sold alibaba for 51 gain: “Hi AKI understand you are bullish on Wilmar given how…”
Shaun commented on sold alibaba for 51 gain: “Hi AKI understand you are bullish on Wilmar given how…”
SN commented on sold alibaba for 51 gain: “Hi AK, with ST Engineering up 48% YTD, will you consider…”
Yue commented on 12m53 plan for cpf in 2025: “Hi AK, can I know the reason why you don't transfer all…”

ASSI's Guest bloggers

Sino Grandness and rights issue.

Friday, May 26, 2017

Reader:
Just checking can you comment on SINO GRANDNESS rights issue?
Is it worth subscribing to the rights?
Thanks

AK:
Always ask what is the reason for issuing rights. It seems like they have trouble repaying debt and, hence, the rights issue. If so, the rights issue does not add value for investors.
Subscribe if you believe that the company is able to do much better in future.



Reader:
ok thanks for the advise.

AK:
If you are putting in more money but the performance declines, it is a bad deal.

Reader:
yeah



Remember, not all rights issues are created equal. Some will enrich investors and some will impoverish them. 

In general, I do not like rights issues which happen because the balance sheet needs strengthening. They weaken our own balance sheet and do nothing to improve our cash flow.

Related post:
A lesson on rights issue from 2011.

3 comments:

Freedom said...

Isn't consumer staples is a good investment regardless of the economies?

Freedom said...

Isn't consumer staples is a good investment?

AK71 said...

Hi Freedom,

I wonder if loquat juice and its kind are a staple.

I stop taking fruit juice more than a year ago. I rather eat fresh fruits. ;)


Monthly Popular Blog Posts

All time ASSI most popular!

 
 
Bloggy Award