Procurri’s Disastrous IPO Market Debut will dampen retail IPO sentiment for a while

Procurri’s IPO debut ended in a disaster yesterday, Wednesday 20 July 2016.   It never traded above its IPO price.    After holding steady for the whole of yesterday at between 53 to 55 cents, it collapsed in the last hour of trading to close at 45 cents.      That is a 20% loss for anyone who subscribed for the IPO and did not cut loss yesterday after its opening price was below water.    That’s a hefty loss for one day for IPO investors and staggers.    Ouch!

I did not subscribe for the IPO and neither did my family.   We were put off by the high absolute pricing as well as the high PE Ratio.   We can only breathe a sigh of relief and nothing more.   My thoughts go out there for those who decided to take the plunge and are still holding on the shares.   Analysts and experts have been giving very positive reviews about the stock and IPO, painting its future prospects rosily. So, it pays to trust your own analysis and instincts rather than to trust what the “experts” tell you.

Procurri’s IPO pricing was priced to perfection and full ripeness, at about close to 15 times price-earnings.    This meant that there was very little meat left for IPO staggers to feast on.       For staggers (now turned long-term investors?), the chance of making money was much lower than the risk of losing money.

It now seems like the mother company, Declout, is also being “punished” for its pricing strategy for Procurri.   Following her “daughter’s” debut,  Declout’s share price has also dropped to as low as 19 cents today (currently at 20 cents), which translates to a 15 – 20% loss from its earlier share price of 23.5 cents which news of Procurri’s IPO was announced.    It looks like investors are upset with Declout too for being so aggressive and not leaving anything on the table for them.

Yet again, the market seems to be irrational.   Procurri’s IPO debut would mean that Declout has monetized one of its key investments and freed up a lot of cash for the mother company.  So, Declout’s shares should be trading up rather than down.  Is this a case of sentiments ruling over logic?

Procurri’s retail IPO interest was partly sparked by the remarkable debut of an earlier IPO – Advancer Global Limited, which doubled in price on its opening debut.    Spurred by this positive development, it would not be surprising that investors and staggers would have wanted to try their luck with Procurri, which with hindsight, has been disastrous.

Following the bad outcome from Procurri’s IPO debut, sentiment in the IPO market, especially for retail investors, is likely to be dampened for now until they see one or two more IPOs trading above water at least.

Anyway, the two forthcoming IPOs, Katrina Group and Wong Fong Industries have both “CHICKENED OUT” by listing through placement shares only.   No retail/public tranche -  folks!    They probably see us retail investors as “kacang putih” and not worth their efforts.  : (

And following that, it will be EC World REIT to list with the offering of 188.13 million units comprises an international placement of 180.63 million units and 7.5 million units to the Singapore general public. Each unit is priced at 81 cents. Annualised distribution yield for FY16 and FY17 is expected to be 7.1% and 7.3%.

Offhand, I am again not keen on this one, it being entirely China-focused.

So, looking forward to more IPOs to come.    Good ones please……. !
Don't treat us as carrot-heads (菜头).

SMRT - Temasek Considers Taking Subway Operator SMRT Private

Updated on Wednesday, 20 July 2016, 7.00 pm

Temasek Holdings' unit Belford Investments has proposed a buyout of transport operator SMRT Corp at S$1.68 a share, in a deal that values the firm at S$2.57 billion.

The exit offer at S$1.68 per share is a 8.7 per cent premium over SMRT's last traded price of S$1.545.

(Source:  Business Times)

-------------------------------------------------------------------------------

From Dow Jones Singapore -


DJ Singapore - ''Temasek Considers Taking Subway Operator SMRT Private"
(2016/07/18 12:58PM)

--------------------------------------------------------------------------------

By P.R. Venkat

SINGAPORE--State investment firm Temasek Holdings Pte. Ltd. is considering an offer to buy the remaining shares that it doesn't already own in Singapore-listed transport firm SMRT Corp., people familiar with the situation said Monday.

Temasek, which has a 54% stake in SMRT, plans to delist the company, which currently has a market capitalization of 2.4 billion Singapore dollars (US$1.78 billion), these people said.

Temasek's buyout plan comes days after the government announced a deal to take ownership of SMRT's train assets, leaving SMRT to focus on the operations and maintenance of the network. That deal is valued at S$1.1 billion, most of which would be used to repay SMRT's debt. SMRT said it doesn't intend to pay any dividends to its shareholders after the sale of the train assets.

SMRT's reputation took a major hit in December 2011 when its subway lines suffered two major breakdowns that left more than 210,000 commuters stranded.

The disruptions were the worst in the network's history, prompting public outrage, criticism of the company's wide-ranging interests, as well as a rare government inquiry--a reflection of how seriously Singapore takes its record of orderliness and efficiency.

Write to P.R. Venkat at venkat.pr@wsj.com



(END) Dow Jones Newswires

July 18, 2016 00:58 ET (04:58 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.

Life is more than just a spreadsheet

"Too often, we transform our lives to point us in the direction of where the money is. We sometimes compromise our quality of life so we can make a bit more. But shouldn’t it be the other way around? Shouldn’t we transform our relationship with money so that it points us in the direction of life that we have always wanted?"

A nice article by Ong Shi Jie which makes a good read and some reflection on a Sunday.

It delves into the eternal conflict between work-life balance.   Do we seek more money or more time for the family?


Article (in PDF format)

Life is more than just a spreadsheet (Weblink)

Source: Personal Wealth, The Edge Malaysia Weekly, on July 4 - 10, 2016.

SMRT - to transfer ownership of train assets to LTA

SMRT Corp will transfer the ownership of its rail assets, including trains and signalling systems, to the Land Transport Authority (LTA) for S$991 million.

New Rail Financing Framework (NRFF) link


This news is expected to be good for SMRT as its burden on heavy capital expenditure will be taken away.

Update (Monday 18 July 2016, 11.00 am)

SMRT is still halted from trading this morning.   It goes ex-dividend today for 2.5 cents.

At the previous closing price of $1.545, the ex-dividend price should be $1.53.

Current queue price is $1.50 (ie. minus 3 cents)

At this price, the news appears to be taken mildly negatively by shareholders and investors.   This could be due to 2 reasons:

     i.  Disappointed that there is no special dividend despite the huge cash bonanza.
     ii. The lower profitability as margins will be capped under new framework.


Update (Monday 18 July 2016, 3.00 pm) - SMRT Still Halted

DJ Singapore

Temasek Considers Taking Subway Operator SMRT Private

--------------------------------------------------------------------------------

By P.R. Venkat

SINGAPORE--State investment firm Temasek Holdings Pte. Ltd. is considering an offer to buy the remaining shares that it doesn't already own in Singapore-listed transport firm SMRT Corp., people familiar with the situation said Monday.

Temasek, which has a 54% stake in SMRT, plans to delist the company, which currently has a market capitalization of 2.4 billion Singapore dollars (US$1.78 billion), these people said.

Temasek's buyout plan comes days after the government announced a deal to take ownership of SMRT's train assets, leaving SMRT to focus on the operations and maintenance of the network. That deal is valued at S$1.1 billion, most of which would be used to repay SMRT's debt. SMRT said it doesn't intend to pay any dividends to its shareholders after the sale of the train assets.

SMRT's reputation took a major hit in December 2011 when its subway lines suffered two major breakdowns that left more than 210,000 commuters stranded.

The disruptions were the worst in the network's history, prompting public outrage, criticism of the company's wide-ranging interests, as well as a rare government inquiry--a reflection of how seriously Singapore takes its record of orderliness and efficiency.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

July 18, 2016 00:58 ET (04:58 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.

SGX temporaily ceases trading (14 July 2016) at 1138 hrs - How will this hit Noble Group traders? Are speculators caught?

SGX temporarily ceased trading today 14 July 2016 at 11:38 hrs.
First Announcement (11.50 am)

1st Update at 12:39 hrs - says that trading expected to resume at 1400 hrs.
1st Update at 12:39 hrs


2nd Update at 13:53hrs - that trading not ready to resume due to
ongoing reconciliation.
2nd update at 13:53 hrs






How is this going to affect Noble Group rights traders today?

Oh dear...  how is this going to affect traders and speculators of Noble rights shares?   The rights cease trading today 14 July 2016 at 5.00 pm!

For those traders and speculators who are still caught with the rights shares without the intention of holding on to them or subscribing to them, they must be sweating it out right now.

If the trading halt is not lifted, they will have no option but to subscribe to the rights or forfeit them.

Noble Group is certainly not having much luck these days.  What a day for something like this to happen....




3rd Update at 15:22 hrs - 

SGX confirms that order and trade executions are accurate.   The market will resume trading at 1600 hours and open per  normal on 15 July 2016. 3rd Update at 15:22 hrs A lifeline opens for those who are still exposed, 1 hour to clear all oustanding trades!  GOOD LUCK to all.

Time is 16:03 hrs

The 4.00 pm scheduled resumption of trade has passed.  Market still halted.   
What's happening....

Update 4 - 16:03 hrs

SGX informs that the market will not resume trading at 1600 hours  and will not re-open today.

4th Update





Oh dear.   The worst scenario has happened.   Market is not going to reopen today!   My goodness.. what's going to happen to those with outstanding positions in Noble's Rights shares??

Dreadful!   Will a lot of speculators and traders be caught? ...........


Final Update (15 July 2016)

Good News!   SGX has given Noble a reprieve.  Noble rights trading has been extended for a further day on 15 July 2016.     Good luck to all investors, speculators and traders.    

[ Richard Elman's outstanding position is as follows:   Rights entitlement (as of 30 June): 1.46 bn; Rights holdings (as of 13 July):  889.5m,   Outstanding excess rights: 263.6m)

"Death Spiral" Convertibles - ISR Capital --> Trade Carefully

Source: The Edge Markets (29 June 2016)
Weblink


MAS aware of ISR stake sale to Rigoll, says Value Capital Asset Management

By:
Leu Siew Ying

SINGAPORE (June 28): Value Capital Asset Management, the fund manager that placed a commanding stake in ISR Capital in the hands of David Rigoll, says that the Monetary Authority of Singapore (MAS) was aware of its transactions and the source of its funds.

“To reiterate, VCAM is a privately held fund management company registered with MAS and they are obligated to report to MAS on their investors and source of investment funds,” says spokeswoman Rosalina Soh, of Equitique Communications, in an email exchange with The Edge Singapore.

VCAM specialises in subscribing to redeemable convertible bonds issued by small cap companies. These instruments, sometimes known as “death spiral” convertibles, have the potential to cause massive dilution, and even place control of a company in new hands.

In November 2014, Cayman Islands-based Premier Equity Fund and VCAM entered into an agreement with ISR Capital to subscribe for $35 million worth of 2% redeemable convertible bonds. The bonds are being issued in seven tranches, each composed of five sub-tranches of $1 million.

ISR Capital is charged a 5% arranger’s fee by VCAM at the close of each sub-tranche. The conversion price of the first four tranches of bonds is set at 85% of the average of the volume weighted average price at which ISR Capital shares traded on any three consecutive trading days determined by the subscriber during the 30 trading days that immediately precede the closing date of the first sub-tranche of each tranche of the bonds.

So far, the fund managed by VCAM has subscribed to all five sub-tranches of the first tranche of bonds. The conversion price was just 0.4 cent per share. As at May 13, an aggregate amount of $950,000 of the fifth sub-tranche had been converted into shares, according to ISR Capital.

VCAM sold most of the shares it converted almost immediately, with much of it going to Rigoll. On May 9, Rigoll bought 265.4 million shares in ISR Capital at 0.5 cent apiece from VCAM’s Premier Equity Fund Sub Fund G. That gave Rigoll a 28.5% stake in ISR Capital based on the 931 million shares in issue at the time. By June 13, Rigoll held 426.7 million shares of ISR Capital, or 28.56% of the 1.49 billion shares in issue.

The 0.5 cent at which VCAM’s Premier Equity Fund Sub Fund G sold its ISR Capital shares is 25% more than the 0.4 cent at which the shares were issued. However, shares in ISR Capital have rocketed since Rigoll emerged as a major shareholder of the company. The stock is now trading at 9.5 cents, or 1,800% more than the 0.5 cent at which the VCAM fund had sold its shares.

How were VCAM and Rigoll introduced? Who are the investors behind Premier Equity Fund? Did VCAM have to consult these investors about the sale of ISR Capital shares to Rigoll? “Your questions are again suggestive and seeing this straightforward fund-raising exercise in a rather complex manner,” says Soh, in an email.

In fact, the background to ISR Capital’s recent announcements isn’t straightforward, according to The Edge Singapore’s cover story this week. The company appointed Rigoll a non-executive director on May 16, and an executive director on June 16. On May 20, it said it had signed a memorandum of understanding to look into the possibility of investing in a rare earths mining concession indirectly owned by Singapore-based REO Magnetic. On June 9, ISR Capital signed an agreement with REO Magnetic to buy a 19.9% stake in Tantalum Holding (Mauritius), which owns a company in Madagascar that holds a permit to explore and develop a rare earth concession.

However, according to The Edge Singapore, Tantalum Holding (Mauritius) was once 100% owned by a listed company in Germany called Tantalus Rare Earths. Rigoll is a substantial shareholder of Tantalus Rare Earths, and was a director until Dec 8. As it happened, Dec 8 was also the day that Tantalus Rare Earths signed a deal to sell Tantalum Holding (Mauritius) to a Singapore-based company called Apphia Minerals SOF. This company changed its name to REO Magnetic on May 20, the same day it signed the MOU with ISR Capital.

The largest shareholder of REO Magnetic is an individual named Jonathan Lim Keng Hock. The sole shareholder of VCAM is John Poon Seng Fatt.

In response to questions from The Edge Singapore about whether Singapore Exchange had given its approval for ISR Capital’s deals with Rigoll, the local bourse operator said that Singapore operates a disclosure-based regime, and that the market is best-placed to evaluate the commercial merits of companies and their business ventures.

“SGX’s oversight as front-line regulator is on companies’ continuous obligations including whether their disclosure of material information is timely and done in a manner which meets the standards required of listed companies. As such, SGX does not approve, nor pass judgement on the commercial merits of, the business transactions of companies.”

Potential Privatisation Candidates in the Property Sector (SGX, Singapore)

The Edge Singapore, in its June 20th 2016 issue, highlighted the following companies in the property sector as possible candidates for privatisation:

Company	Price to Book Value (Times) as at 14 June 2016
Bukit Sembawang Estates	0.94
GuocoLand	0.64
GL	0.99
Ho Bee Land	0.55
Hotel Properties	1.05
Metro Holdings	0.62
OUE	0.35
Perennial Real Estate Holdings	0.56
United Engineers	0.78
Wheelock Properties	0.57
Wing Tai Holdings	0.34

Source:  The Edge Singapore, 20 June 2016

Other companies also cited but with a lesser chance of privatisation included Capitaland, City Developments, Fraser Centrepoint Ltd, Global Logistics Properties, Hongkong Land, UOL Group, Yanlord Land Group and Ying Li Intl Real Estate.

The possible reasons for privatisation included the following:

• Change of major shareholder
• Tight float
• Deep discount to book value

With privatisation and a buyout offer, shareholders often stand to gain handsome profits.  The companies bear some watching out for sudden price and volume movements.   One does have to be patient though.   A little bit of luck in picking the right counter also helps.

Singapore stocks that should be traded carefully due to convertibles

The Business Times carried an article on Friday 10 June 2016 that highlighted a Singapore-based firm that has started a fund to buy "death spiral" convertibles.

See attached link for the article:

Death Spiral Convertibles
or attached file:   Death Spiral Convertibles


These convertible notes have gained a negative name because of the dilutive impact on the underlying shares of a company.   The notes set the conversion discount and not the price.   This could result in some notes having the potential to create a negative impact on a company's stock due to increasing dilutions to the company's stock with each round of conversion taking place.

According to the Business Times article, the firm has previously made such deals with Attilan Group (the former Asiasons Capital), Elektromotive Group, Yuuzoo Corp, Cacola Furniture International and OLS Enterprise.  

Another firm that is active in such bonds has deals with Annica Holdings, ISR Capital, Magnus Energy Group and LionGold Corp.

Trade these stocks with some care if such convertible notes are still outstanding.

Noble Group Rights Issue - SGX's MTP Rule will leave a bitter aftertaste

Company Background

Noble Group manages a portfolio of global supply chains covering a range of industrial and energy products. Operating from over 60 locations and employing more than 40 nationalities, Noble facilitates the marketing, processing, financing and transportation of essential raw materials. Sourcing bulk commodities from low cost regions such as South America, South Africa, Australia and Indonesia, the Group supplies high growth demand markets, particularly in Asia and the Middle East.

See company website for more info:
http://www.thisisnoble.com/


Rights Issue

Noble has proposed renounceable underwritten rights issue  of 6,535,409,562 new ordinary shares of HK$0.25 each in the capital of the Company at an issue price of S$0.11 for each Rights Share on the basis of one (1) Rights Share for every one (1) existing ordinary share of HK$0.25.

Details of the issue are in the document below:
Noble Rights Issue


SGX's MTP Rule to affect Noble's Rights Issue?

SGX's Minimum Trading Price (MTP) rule is expected to have a negative impact on Noble's right issue and future share price movements.

When the rights issue was announced, Noble's share price stood at 30 cents.   I would speculate that the rights price was partly fixed with the MTP in mind.   At 11 cents for the rights offer, the theoretical ex-rights price for Noble would have been (30+11)/2 = 20.5 cents.   This would have kept Noble above the 20 cent requirement level.

However, the rights issue announcement was not too positively taken and the price dropped last Friday (3 June 2016) to 26 cents.   Theoretical ex-rights price is now (26+11)/2 = 18.5 cents, which puts Noble into MTP-territory.    Unless the share price moves back up above 20 cents, we are looking at an eventual share consolidation.

Share consolidation would be a further dose of bad news.  Imagine having forked out money for a rights issue and getting more shares and then having it reduced back to fewer shares again!   I am certainly no big fan of the MTP - to me it has destroyed a lot of value for our companies and therefore shareholders and investors on the SGX.   More often than not, the share price after consolidation drops significantly again after the exercise and shareholders are far worse-off.

I believe that Noble's share price has further to fall prior to the rights issue.   The rights issue effect has probably not sunk into all investors' minds yet and not all have reacted to Friday's share price post announcement.    We are probably looking at another 4-cent drop to about 22 cents prior to the rights issue.

To me, MTP-related share consolidation for Noble seems almost certain to happen post-rights and investors should consider their options carefully regarding the rights issue.

I have about 200 shares in Noble left over from many years ago when I elected for scrip dividend.  Time now to ponder on how to react to the rights issue.

Starburst Holdings Limited (SGX, Singapore) - Rights and Expected Warrant Pricing

Company Background

Starburst Holdings Limited (Starburst) specialises in the design and engineering of firearms-training facilities and the design, fabrication, installation and maintenance of anti-ricochet ballistic protection systems for firearm shooting ranges and tactical training mock-ups for law enforcement, military and security agencies as well as civil authorities in Southeast Asia and the Middle East.

   See company website link for more information:
   http://www.starburst.net.sg/








The company recently offered a rights issue of 1 warrant for every 4 ordinary shares held for an issue price of 1 cent ($0.01), with the exercise price set at 25 cents ($0.25).

Starburst's rights price ended trading yesterday (2 June 2016) at 4.8 cents.   It was the last day of trading for the rights.  

With a subscription price of 1 cent, it means that investors who bought the rights would have paid a total of 4.8 cents + 1 cent = 5.8 cents to get hold of the warrants.

Starburst's mother shares are trading today (3 June 2016) at 25 cents, which therefore gives a theoretical price of zero for the warrant.

Given the recent indications on the trading price of the rights , one would expect a premium to be attached to the soon-to-be-listed warrants of about 6 cents.

Hence, expected opening price for warrants is estimated at between 5 to 7 cents, giving a premium of about 20% to 28%.   This is a little expensive but still considered acceptable for a warrant with a expiry period of 5 years.

Important dates and times to the rights issue:

1..  Last date and time for acceptance and payment of warrants:  
      Wed 8 June 2016 at 5 pm (9.30 pm for electronic applications)
2.   Expected date for crediting of warrants:   Wed 15 June 2016
3.   Expected date for issuance of warrants :   Thu 16 June 2016
4.   Expected date for commencement of trading of warrants:  Fri 17 June 2016

成也风云，败也风云

The movie, "The Storm Riders (风云)" was an awesome movie which was produced in 1998.

It tells the story of Lord Conqueror, who desires to conquer the pugilistic world and a prophecy foretold that two of his disciples, 风 and 云,would help him greatly in his ambitions.  However, it was also the same two disciples who would also lead to his eventual downfall.

Relating this back to investing.   How much of a single stock or investment should it comprise as a percentage of your total portfolio?   My personal sense and gut feel is 10%, so I tried to validate this to see if I could find supporting facts or evidence over the internet.   The estimates seem to range at about 5 to 10%.   25% was cited in one case as the absolute maximum (only with very very strong justifications and even then, not recommended).    A very good blog post that I found on this topic is given below.  It basically highlights the risks to being too heavily invested in one stock:

What is the maximum portfolio allocation for a single stock?


One of the stocks in my current portfolio alone accounts for 30% of my entire portfolio (of about 30 to 40 stocks).   It is therefore a substantial investment and considered risky (portfolio-wise) as any strong movements up or down will significantly affect the value of my overall portfolio.   I will have to monitor this stock very closely and hope that it provides good upside in the coming months.

The situation that Koon Yew Yin faced when he, as a substantial shareholder of V.S. Industry, while trying to dispose of his shareholdings in the company recently will also highlight the problems when trying to dispose of a significant stake.  Disclosure proved to be very difficult for him.   News article link is below:

The Star Malaysia on Koon Yew Yin

Jumbo (Jumbo Group Limited) - SGX, Singapore

Company Background

Jumbo is a local restaurant group that specialises in Seafood.   Jumbo Seafood, a Singapore-style seafood restaurant is known for its chilli and black pepper crabs.  From a single seafood restaurant, the company has grown to over 20 restaurants in Singapore, China and Japan.

Other brands by Jumbo Group include JPot, Ng Ah Sio Bak Kut Teh, Chui Huay Lim Teochew Cuisine and Yoshimaru Ramen.

For more information, see company website at:

http://www.jumboseafood.com.sg/en/


Recent Positive Signals

1. Company reported good quarterly results in its latest quarter
2. Analyst reports generally upbeat about the company
3. More imporantly, Jumbo broke a 49-cent resistance level today, touching a high of 51 cents before coming back to close and rest at 49 cents.   This is now a support level instead of a resistance level.

Market Action

19 May 2016 (Thu) - Bought Jumbo at 49 cents.

Long Suspended Companies on SGX, Singapore

Singapore Exchange (SGX) is introducing a half-yearly report to update shareholders on companies with shares suspended for 12 months or more.

The initiative is one of several SGX is planning to improve regulation of listed companies’ continuing obligations as well as at the listings admission stage.

The first report covers 20 companies and sheds light on their developments, particularly if they have not made company disclosures for some time. In the report, SGX provides information on actions it has taken, and its engagement with the companies, directors, special auditors, judicial managers and/or liquidators.

SGX’s engagements with the companies were aimed at achieving a share trading resumption proposal, or extracting an exit offer for minority shareholders should a delisting occur. Some of these engagements were also long-drawn due to difficulty in establishing contact with, or eliciting a response from, board directors.

Of the 20 companies in the report:

a. 11 companies are exploring trading resumption/ reverse takeover.

• Fibrechem, Sino Techfibre, PT Berlian, Sinopipe, Eratat, Fung Choi, Fujian Zhenyun, Swee Hong, JES, Golden Energy, Changjiang Fertilizer

b. 2 companies are pursuing court action against individuals.

• Celestial, DMX

c. 1 company was recently placed under judicial management.

• Anwell

d. 4 companies are in the delisting process, of which 2 are exploring to provide an exit offer.

• China Milk, China Hongxing, Sunmart, Lankom

e. The remaining are pending responses to the exchange’s queries.

• China Paper, China Sun

See the full report below:
SGX Long Suspended Companies

Source: SGX website 

BioAlpha Holdings (Bursa, Malaysia)

Company Background:

Bioalpha Holdings Berhad (BHB) (Stock Code: 0179) is principally involved in the manufacturing and sale of semi-finished and finished health supplement products, as an ODM, as well as under the Company’s proprietary house brands.

Its health supplement products comprise processed herbs, formulated ingredients, functional foods as well as herbal and non-herbal supplements which offer a variety of health benefits including detoxification, immune system health, blood glucose regulation and brain health, as well as beauty benefits such as weight management and anti-aging.

See company website for more information:
http://www.bioa.com.my/

The company is currently in expansion mode and expanding downstream into retail pharmacy operations.

Being a relatively newly listed company, the stock does not have much coverage but the long-term prospects look good.    One research report by CIMB  recently gives  a target price of 65 sen.   See attached:

CIMB research report on BioAlpha


Market Action:

6 May 2016     Bought Bioalpha at 35.5 sen
9 May 2016     Bought Bioalpha at 36 sen

Singapore Banks

The Edge Singapore, in its May 9, 2016 edition, highlighted DBS Bank and also covered the other local banks in their Cover Story.

The feature covered DBS Bank and questioned if the worst was over?  For our local banks, the current main negatives are as follows:

1.   Exposure to offshore and marine sector.
2.   Declining commodity prices and possible exposure
3.   Rising NPLs (non-performing loans)
4.   Capital Requirements risk

Source:  The Edge Singapore (Bloomberg, Company Reports), May 9 2016

The views for DBS Bank seem to vary among research houses ranging from "underweight" to "buy". So, as you can see, even the experts have very different views.

My thoughts: On a more positive side, at least the banks pay decent dividends and long-term investors can take comfort in the fact that banks are still the most solid of all companies.  Accumulating the dividends over the years would pay off and at some stage in your life result in the shares bought becoming "free shares" over the long term.

Singapore Companies with high debt levels, SGX, Singapore

In its latest weekly publication on 25 April 2016, the Edge Singapore wrote a good Cover Story and highlighted a list of Singapore companies with high debt levels, declining earnings and operate in industries with weak outlooks.   It said that investors with high-risk appetites could consider these stocks:

Source: The Edge Singapore, April 25, 2016 (Bloomberg)

Having looked at the list above, I personally do not like any of the companies above expect for Tuan Sing Holdings, which I feel is a rather good company operating in a tough sector (Property Development & Investment) right now.   The company has other businesses - eg. it has been diversifying into Hotel Investments, it has an Industrial Services segment (SP Corp and Hypak) as well as Gultech (which was listed on SGX but privatised) as well as Pan-West (golf-related lifestyle products).

The other companies above are operating in touch sectors like Oil & Gas, Retail, Commodities/ Trading etc.

The Edge Singapore has rightly highlighted that investors invested in these companies will need to be patient and take a long-term view for fundamentals to improve and catch up with prices.


Also highlighted was a list of Singapore corporate bonds trading at stressed valuations, which I will not comment on as I don't invest in corporate bonds:

Source: The Edge Singapore, 25 April 2016 (Bloomberg)

Cityneon Holdings Limited (Cityneon) - SGX, Singapore

Company Background:

Cityneon is a leading service provider of creative solutions in the area of Interior Architecture, Events, Exhibitions and all manner of Experiential Environment to global multi-national conglomerates, brands, businesses and government agencies throughout Asia and the Middle East.

For company background, see company website:

http://cityneon.net/


Cityneon's share price has been on a sharp rise since 23 March 2016, prompting a SGX query on 16 April 2016.      A signficant positive development for the company is the launch of its Avengers S.T.A.T.I.O.N in Paris, Avengers STATION and Transformers Experience in Las Vegas as well as Transformers Experience in China.

Paris Press Release

Las Vegas Press Release

China Press Release


Cityneon's share price has doubled in a short space of a month from 23 March to 21 April 2016!   Historical PE now stands at about 148 times although various Research Houses expect this PE to drop substantially to teen levels by 2017 as a result of these positive developments above.


Market Action:

I normally do not sell a rising stock.  In fact my stop loss has been raised to 54 cents and this has not been broken.  However, I am making an expection in this case and taking profit as the gains are just too attractive to ignore.  

So, I am out of the stock as of today:

• 30 March 2016 - Bought Cityneon at 38 cents
• 19 April 2016 - Sold Cityneon at 59 cents
• ----->   Profit - 55% ($ XX,000)!

I sleep well tonight with a nice profit locked in.    Thank you, Cityneon.

Singapore Small-Cap Stocks to buy - RHB Research (The Straits Times, Wednesday, 20 April 2016

In a Straits Times article on Wed 20 April 2016, RHB has launched a handbook featuring 25 small -cap stocks with  earnings, strong cash reserves and growth potential that investors can consider buying.

The stocks are listed below:

     The Straits Times, Wed 20 April 2016

RHB Research hopes to unearth previously under-researched and undiscovered companies and push their hidden potential to be unleashed so that they turn from gems to glittering jewels.  

Microlink Solutions Berhad - Bursa, Malaysia

Company Background

Microlink Solutions Bhd (Microlink) is a company in Malaysia that provides banking solutions for its clients.   Established since 1994, it is an award-winning Multimedia Super Corridor (MSC) status company specialising in the provision of end-to-end banking solutions for both conventional and Islamic financial institutions.

 For company background, see below:
Microlink Solutions Bhd company website


Microlink was recently queried by Bursa with an UMA (Unusual Market Activity) due to a substantial fall in its share price.   The company replied that it was unaware of the reasons for the price drop.


Market Action:

Remarks:   HIGH-RISK TRADE!

The share price seems to be rebounding from its recent lows and broke a resistance level of RM1.10 today (Tuesday 19 Apr 2016).

• 19 Apr 2016 - Bought Microlink at RM1.10
• Updated on 28 April 2016 - Sold Microlink at RM1.00 (Loss incurred!)

I will trade on the up-side rebound of this stock.   Stop-loss set at 1.01 for downside risk limitation.

MFS Technology Ltd (MFS Tech), SGX Singapore

MFS Technology Ltd (MFS Tech) is principally engaged in the design, manufacture and distribution of flexible printed circuits (FPCs) and printed circuit boards (PCBs), and the provision of turnkey component assembly services for FPCs. As part of its provision of design services, it also provides value-added services like application engineering services in respect of FPCs to meet its customers' requirements. The Group aims to provide these services as a "one-stop" solution package to its customers in respect of their interconnect requirements.

See company website link below:
MFS Tech Website


The company has sold its core business and is in the process of voluntary liqudation.   Expected delisting date is 12 May 2016.

See delisting document:

https://drive.google.com/open?id=0B0mnNRZF77OZNEItaklOVUpxbWc

Market Action:

• Bought MFS Tech at 2.0 cents (11 Apr 2016, cum dividend)
• Sold MFS Tech at 1.9 cents (19 Apr 2016, ex dividend of 0.3 cents)
• Profit (excluding brokage costs) - 10% (S$1,000)

GL (Guocoleisure) - SGX Singapore

GL (formerly known as Guocoleisure) broke an important resistance level of $0.90 last Friday, 15 April 2016.

GL is an investment holding company with principal investments in hotel management & operations, gaming, oil & gas, property development and other areas in the leisure industry.   Notably, GL is the largest hotel owner operator in London with 5,000+ rooms, operating 17 hotels across 6 brands: Clermont Hotels & Residences, Amba Hotels, every hotels, Guoman Hotels, Thistle and Thistle Express.

The company receives 55.11% of a 2.5% overriding royalty from the Bass Strait  relating to all hydrocarbons produced in designated areas in the Bass Strait, Australia

Market Action

18 Apr 2016  -  Bought Guocoleisure at $0.905


Potential Catalysts:

• Previous talk of privatisation, which has yet to materialise.

Palette Multimedia Bhd (Bursa)

Company Profile

The Palette Group of companies was founded in 1997.   Company information can be found below:
Palette Multimedia company website

Palette is a leading solution provider of broadband, wireless and networking products and services. Palette is the leading technology provider of the latest generation of Network Access Control and Management (NACM) system for LAN and WLAN in the enterprise environment and the provider of Subscriber Management Systems to ISP, telco, and network operators in the public network environment.

The Professional Services and Consulting Unit of the Company provides technical services to our customers such as telco, ISP, broadband operators, hotel operators, property developers, enterprises and wireless hotspot operators with design, development, implementation, network management and business analysis of the technology and network.

More recently, the company has launched a new growth pillar in medical services. he company’s new growth pillar - a new revenue stream via its digital mobile healthcare system called the i-Medic system.   Palette has been investing in building this system since 2013, and the fruits are now showing; to be precise, it will contribute in the next quarter onwards.

This is mainly because the i-Medic system has its maiden contract valued at US$500,000 (RM2mil) from Griffin International Pte Ltd for its mobile healthcare business.  Under the deal, Griffin has the exclusive rights to market the subscription of the i-medicTM (which is Palette’s mobile healthcare system) to doctors, clinics and hospitals in Chengdu, China, and also to market the healthcare management packages to patients globally. the i-Medic

See press release:
Changes at Palette Multimedia (The Star 2 April 2016)


Trades last week (11 April 2016)
1.   Bought Palette at 6.5 sen (holding for more upside)
2.   Bought Palette at 7.5 sen (contra-ed off at 9.5 cents on 18 April 2016 - 26.6% return)

Acromec Limited - IPO Allocation Results

ACROMEC’S IPO ATTRACTS STRONG INVESTOR DEMAND

Acromec Limited's IPO of 27 million shares was 5.3 times subscribed.   See press release link below:

Acromec Press Release


See the following link for the allocation results:

Acromec IPO Balloting results


Acromec’s post-Invitation market capitalisation will be approximately S$26.5 million
based on the issue price of S$0.22.    

The listing and trading of Acromec’s shares are expected to commence on a “ready”
basis at 9.00 a.m. on 18 April 2016 under the stock code 1CH1.


I was lucky this time in the IPO - 9,000 shares were allocated to me.   Let's hope for a successful opening debut!   : )

[Update:   IPO shares were sold on the opening day at 24.5 cents.   Profit of about $200]

Acromec Limited IPO - PhillipCapital Recommendation

PhillipCapital recommends to subscribe to the Acromec IPO.

Attached link:

PhillipCapital Report Recommendation

Acromec IPO (Acromec Limited), Singapore

Acromec IPO Details:

Company Background

• A Singapore-based specialist engineering services provider with 20 years of experience in the field of controlled environments.  Expertise is in the design and construction of facilities requiring controlled environments such as laboratories, medical controlled environments such as laboratories, medical and sterile facilities and cleanrooms.
• Serves mainly the healthcare, biomedical, research and academia, and electronics sectors.  Customers comprise mainly hospitals and medical centres, government agencies, research and development companies or agencies, research and development units of multinational corporations, tertiary educational institutions, pharmaceutical companies, semiconductor manufacturing companies, and multinational engineering companies.

Shares on Offer:

Invitation in respect of 27,000,000 New Shares comprising:
(a) 1,500,000 Offer Shares at S$0.22 for each Offer Share by way of public offer; and

(b) 25,500,000 Placement Shares at S$0.22 for each Placement Share by way of placement, comprising:

(i) 22,500,000 Placement Shares at S$0.22 for each Placement Share; and
(ii) 3,000,000 Reserved Shares at S$0.22 for each Reserved Share reserved for subscription by Acromec Directors, employees, customers and suppliers who have contributed to the success of the Group.

Dates to note:

7 April 2016, 9.00 a.m.                Commencement of Offer
14 April 2016, 12.00 noon           Close of Application List
15 April 2016                                   Balloting of applications, if necessary
18 April 2016, 9.00 a.m.              Commence trading on a “ready” basis

IPO Prospectus:

See attached:

Acromec Limited IPO

Intention:

1. To Apply for the IPO with an intention to stag (ie. Sell off the shares if successful).   Limited shares on offer (only 1.5 million shares available to the public)
2.  Expected opening price range: 23 to 28 cents.

Introduction and Disclaimer

I am Green Ninja, a retail investor interested in the stock markets in South East Asia.

My investing style is geared towards growth rather than stability in terms of investing only in blue-chips and dividend stocks.   Hence, the investing style leans towards a more aggressive portfolio of stocks.

Disclaimer: 

The posts and views expressed by me are by no means a recommendation or a solicitation or expression of views to influence you to buy or sell any stocks. I am just sharing openly on what I am doing with my own investments.   You need to understand your own investment objective, risk appetite and the amount of loss you can afford to bear as all investments bear a certain degree of risk.   Stock market losses are as real and inevitable as profits can be.