Indofood Agri: Rebounding.

Indofood Agri Resources assured investors that PT SIMP’s listing will not dilute its earnings as much as analysts had feared. So, is this a good time to go picking up some shares of the company?

A long white candle was formed on the back of high volume today as price broke resistance at $1.69 to close higher at $1.71. The MFI and RSI have been spotting a positive divergence with its declining share price and we could see the rebound in price test the next resistance at $1.78.

This counter's downtrend is still very much intact and if I were to go long here, I would choose to do so as close to the immediate support of $1.69 as possible. I would also watch the declining 20dMA and the trendline resistance as possible price targets for divestment. Good luck to all involved.

Indofood Agri up after it downplays unit’s IPO.

Indofood Agri said its earnings per share in 2010 will be 835 rupiah ($0.12) after the IPO, down from 974 rupiah previously. However, its net asset value per shares after the listing would rise to 7,843 rupiah from 7,605 rupiah.

Wednesday, 01 June 2011

© 2011 - The Edge Singapore

Hyflux: $800 million bridge loan (UPDATED JULY 2018).

In 2011, I wished all Hyflux investors good luck.

Now, 2018, again, I wish them good luck because they need it more now than ever.

I have always been concerned by how Hyflux kept borrowing money (and why their cost of borrowing was always relatively high in an environment of very low interest rates).

I also said that I would not lend Hyflux any money.

Chat with a reader in Nov 2017.

Being a retiree, I feel sorry for the retirees who put in a lot of their money in Hyflux.

I just hope that they did not put all their eggs in the same basket.






A retiree wanted more updates on the divestment of the plant and what that means when the 4.25 per cent bonds that he had invested S$250,000 into mature this September.

“There isn’t a conclusion and everything still hinges on the sale of Tuaspring and at what price. But my investment is due in September and that’s what I’m most concerned about,” he told Channel NewsAsia.

“I’m retired so this was going to be a key part of my income but now, not just the income, I have to be worried about my capital. My kids are going to university soon so I have to figure another way out.” 

Source:
https://www.channelnewsasia.com/news/business/hyflux-shareholders-townhall-meet-management-first-time-10545662






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It was not so long ago that Hyflux offered $200 million of perpetual preference shares. 

At that time, I wondered why Hyflux had to pay a 6% annual dividend yield on those shares.

6% seemed a tad expensive to me in an environment where interest rates are very low. 

I concluded that Hyflux could be having some difficulty getting long term financing from financial institutions at even an interest rate of 6% per annum.

Now, Hyflux has approached a group of banks for a $800 million bridge loan. 



Bridge loans are usually short term in nature (i.e. not more than a year) and are usually perceived as lower risk and would attract a lower interest rate.






There is no question that Hyflux is a growth company and one with huge capital expenditure requirements. 

It could turn out very nicely for shareholders if its business chugs along as planned. 

Good luck to all shareholders.






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Hyflux said to approach banks for $800m bridge loan Wednesday, 01 June 2011

© 2011 - The Edge Singapore

Related post: 
Hyflux director divested all his shares!

First REIT: MSCI Singapore Index.

The reason for First REIT's strong performance in recent sessions is now apparent:

First Real Estate Investment Trust says it has been included in the MSCI Singapore Index with effect from 1 June 2011.

MSCI is a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services.

The MSCI indices are among the most widely tracked global equity benchmarks covering companies with good operational results and growth prospects. By being a constituent stock on the MSCI Singapore Index, First REIT can be better tracked by a wider group of institutional investors and funds on a global platform.

First REIT's unit price failed to close higher today. Could it be a case of "sell on news"? A long legged doji formed today and this is ominous as it suggests indecision in an uptrend. A pull back could find immediate support at 77c, a previously many times tested resistance.

Immediate resistance at 80c was tested today with only 1 trade of 3 lots done. I am still in the queue to sell some at 80c and 80.5c. A pull back to the longer term support would see me buying more.

Related post:
First REIT: Partial divestment at 77c and 79c.

First REIT makes it to MSCI Singapore index
Wednesday, 01 June 2011

© 2011 - The Edge Singapore

Sabana REIT: Global Small-Cap Indices.

It seems that Sabana REIT will no longer be unloved and the following development probably explains the after market large volume buy up at 94c per unit in the last session:

Sabana Real Estate Investment Management Pte. Ltd., the Manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (“Sabana REIT”), announces that Sabana REIT has been included in the Morgan Stanley Capital International “(MSCI”) Global Small-Cap Indices.

Commenting on Sabana REIT’s inclusion in the MSCI Global Small-Cap Indices, Mr Kevin Xayaraj, Chief Executive Officer and Executive Director of the Manager, said, “The MSCI Indices are widely tracked global equity benchmarks covering companies with good operational results and potential. The inclusion puts Sabana REIT onto the ‘radar screens’ of a much wider group of institutional investors and funds seeking value and performance from markets round the world. We are greatly encouraged to have achieved this major milestone and feel very honored for Sabana REIT to be selected as one of the constituent stocks, considering that it has been listed for only six months.”

Read annoucement here.

With greater exposure to international investors, this could only be good thing for the REIT. Sabana REIT is my second largest investment, together with First REIT, when I last looked. I am looking forward to possibly stronger unit prices in time to come.

Related post:
Sabana REIT: Resistance at 93c demolished.