Hyflux: Don’t cry for the investors

Perpetuals buyers were warned, while pref share investors made money in the 2011 pref shares issue.

Tan Kin Lian in Hong Leong Park on Saturday

shared that he was aware how some of them became Hyflux perpetual securities and preference shareholders despite not being financially “savvy”.

“They were just ordinary investors wanting to have a reasonable rate of interest without taking too much risk. If they wanted to take risk, they would have bought shares,” said Mr Tan, who donated funds to organise the protest event.
Read more at https://www.channelnewsasia.com/news/singapore/we-have-not-lost-faith-hundreds-of-hyflux-investors-gather-to-11395566

He couldn’t be more wrong (as is usual) about “They were just ordinary investors wanting to have a reasonable rate of interest without taking too much risk.” But then he’s the talk cock, sing song king who (together with his partner in that crime, Goh Meng Seng) deprived us of President Tan Cheng Bock, allowing the PAP’s preferred candidate to win.

Well it seems he never bothered to read document offering the perpetual securities to the public. Pg 37 of the perpetual securities issue document had this warning (Emphasis mine) which the investors ignored.

RISKS ASSOCIATED WITH AN INVESTMENT IN THE SECURITIES
The Securities may not be a suitable investment for all investors.
The purchase of the Securities involves certain risks including market risk, interest rate risk, foreign exchange risk, credit risk and liquidity risk. Investors should ensure that they fully understand the nature of all these risks before making a decision to invest in the Securities. Each potential investor in the Securities must also determine the suitability of that investment in light of its own circumstances. In particular, each potential investor should:
• have sufficient knowledge and experience to make a meaningful evaluation of the Securities, the merits and risks of investing in the Securities and the information contained or incorporated by reference in this Offer Information Statement and the Product Highlights Sheet;
• have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular financial situation, an investment in the Securities and the impact such investment will have on its overall investment portfolio;
• have sufficient financial resources and liquidity to bear all of the risks of an investment in the Securities;
• understand thoroughly the terms of the Securities; and
• be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for economic and other factors that may affect its investment and its ability to bear the applicable risks.

The Securities are complex financial instruments. Sophisticated institutional investors generally do not purchase complex financial instruments as stand-alone investments. They purchase complex financial instruments as a way to reduce risk or enhance yield with an understood, measured, appropriate addition of risk to their overall portfolios. A potential investor should not invest in the Securities which are complex financial instruments unless it has the expertise (either alone or with the help of a financial adviser) to evaluate how the Securities will perform under changing conditions, the resulting effects on the value of such Securities and the impact this investment will have on the potential investor’s overall investment portfolio.

This Offer Information Statement and the Product Highlights Sheet are not and do not purport to be investment advice. Investors should conduct such independent investigation and analysis regarding the Securities as they deem appropriate. Investors should also consult their own legal, tax, accounting, financial and other professional advisers to assist them in determining the suitability of the Securities for them as an investment. Investors should make an investment only after they have determined that such investment is suitable for their financial investment objectives. Investors should consider carefully whether the Securities are suitable for them in light of their experience, objectives, financial position and other relevant circumstances.

Pretty comprehensive and in reasonably simple English. So either the perpetuals investors ignored the warning or never bothered to read: just buy.

Kee chiu if you still sympathise with them? After all they must be PAP voters, Will Oliver Lum and other Hyflux investors still vote for the PAP?, because we know the cybernuts don’t have money to even fund their favourite alt media sites.

Interestingly (I stand corrected because I may have missed it because I was getting tired), I can’t find such a provision in the offer document of the Cumulative Non-voting Non-convertible Perpetual Class A Preference Shares .

Wonder why? An honest mistake? No, most likely because Hyflux pref shares had been issued before (Hyflux: Qns to ask?) to the public, and nothing went wrong: in fact investors made money. And preference shares are shares (“You die, yr problem”) while the Perpetual Securities could according to Chris K be mistaken for bonds, hence the warnings. Don’t anyhow say PAP govt don’t care?

Still, if I were a pref share holder, I’d ask SIAS to KPKB about the lack of warning: nothing to lose further, since lost everything except underwear. Anyway, Morocco Mole (Secret Squirrel’s side kick) tells me that his second cousin removed working in DBS’s investment bank tells him that most of the 2016 buyers had made money in the 2011 issue: issue traded above par. They were hoping for a repeat killing. Kee Chiu if you think they deserve sympathy.

Btw, an interesting read: http://thefinance.sg/2019/03/11/when-exactly-did-tuasprings-operational-problems-start-hyflux/

The is the kind of stuff TOC and other anti-PAP alt media publications should be publishing instead of the rants of anti-PAP types like Goh Meng Seng and his wind bag kaki. I did forward the piece to TOC: no pix, no sound. Sad.

Related posts:

Hyflux directors, mgt & auditors kooning from 2016 onwards?

Hyflux on investor losses: “Not our fault, banksters at work”

Hyflux fiasco shows why “book value” is BS

A really curious incident

 

Cynical Investor

Cynical Investor blogs at Thoughts of a Cynical Investor

========================

*Did TKL read the other offer document? And did Meng Seng, other anti-PAP cybernuts, and other alt media experts read the 2016 securities issue documents? Or even Hyflux’s recent reply to SIAS. Somehow I don’t think so going by their comments. Sad.

 

 

Sponsored Content

9 Responses to “Hyflux: Don’t cry for the investors”

  • Bad Boy:

    Mr Tan KL said how all these retail investors suffered especially the older investors.
    Sorry i have to disagree.
    The older investors , unless Hyflux is their first time investing minus singtel shares during 90s, they are the ones that having the good times all along. Since they born earlier, they are able to start playing shares in the late 70s and 80 until 97. Thats when all the sg blue chips started listing e.g. SIA , OCBC, OUB , …whether they get lucky during IPOs or from the market.

    Not forgetting theres also Malaysia stock market at that time both side also can play. Some of the Malaysia blue chips also listed during that similar time. Profit from both sides. And HDB were cheap during that period also.

    Now lost S11, kpkb. I believe many of their bank / cpf still have balance ( although drop by a substantial but within next 2 to 3 years makan no problem ) and due to the agony plus anger they may have in a moment of weakness resort to act blur act pathetic to gain sympathize support. “Weasel” any way they can to get back their S11 or an amount as much as possible.

    GD Star Rating
    loading...
  • LIONS:

    Let Hyflux 34K attend HLP instead of just 400?

    Why bother when 33600 retailers did not bother?

    GD Star Rating
    loading...
  • LIONS:

    You see the PINK DOT.
    Rain or shine,they go to HLP to fight full force?

    GD Star Rating
    loading...
  • LIONS:
    Let Hyflux 34K attend HLP instead of just 400?

    Why bother when 33600 retailers did not bother?

    I am tempted to agree with you. The 30k cannot even be bothered, why should anyone else. Besides, any reasonable and sane person should know that all investments come with risks.

    And to comfort own failures by claiming that because Temasick invested sure make money one is the most stupidest of lamest excuses I have heard.

    Since when has Temasick profit from a genuine investment (non-garment-related business, i.e. laylongs like Airport and POSB excluded)???

    .

    GD Star Rating
    loading...
  • mike:

    I think i am quite sure that many of the 70% bought into Hyflux “risk-free” product.

    While i do not agree that anyone should be subjected to become white-collar crimes’ victims, i see no innocence of what they are losing today.

    One phrase has always guide my investing principle: You can’t cheat an honest man!

    GD Star Rating
    loading...
  • oxygen:

    @ Bad boy

    YOU EITHER LIVES IN A DIFFERENT TIME PERIOD from me or you are not in the casino game of investing. IPOs like NOL and Singtel on debut were deadshit losers except for those who got allotment for small quantity in the IPO application.

    Past Tense warned a lot of Ah Seng that the bubble will burst when OCBC was
    $50, UOB $45 and OUB was around $32 level. From these stratospheric heights, the bank shares fell back to earth. PGs and MGs Ah Sengs all got incinerated.

    Bad Boy: Mr Tan KL said how all these retail investors suffered especially the older investors.
    Sorry i have to disagree.
    The older investors , unless Hyflux is their first time investing minus singtel shares during 90s, they are the ones that having the good times all along. Since they born earlier, they are able to start playing shares in the late 70s and 80 until 97. Thats when all the sg blue chips started listing e.g. SIA , OCBC, OUB , …whether they get lucky during IPOs or from the market

    GD Star Rating
    loading...
  • Tom Lee:

    LIONS:
    Let Hyflux 34K attend HLP instead of just 400?

    Why bother when 33600 retailers did not bother?

    Absolutely right!

    GD Star Rating
    loading...
  • KNN:

    Most of those who suffered big losses are from the 70% — those who lost $100K, $200K, $300K.

    1. Those who had so much money to throw into a single stock are probably those that did well in life / jobs / career; thus they are most likely to support the status quo i.e. PAP.

    2. They had blind faith in anything even remotely connected to PAPies. E.g. Temasek used to own shares in Hyflux, Olivia being photographed & videoed together with LHL, both LKY & LHL praising her & the company etc.

    Let this be a lesson for them. Now they know You Die Your Biz. Especially when you no longer have any use to PAPies.

    34K or 50K is just a small drop of voters. 1 year’s supply of new citizens can make up for them. Not to mention 5 X years of new citizens (2015-2019).

    GD Star Rating
    loading...
  • Asd:

    Stock can go to zero.. everybody is well aware.. so dont cry baby…

    GD Star Rating
    loading...

Leave a Reply

 characters available

Member Services
Self-SupportMembers Login
Sponsored Advertisement

Search On TR Emeritus
Sponsored Advertisement

Most Recent Comments
  • NotMyProblem: @Lim Tean; Let’s face it, there are people who love to be slave. Slaves do not need to think....
  • DoYouWantTheTruth...: ..and nothing but the truth? Then I think in the future, there will be a lot of complaints and...
  • Bbc: Nus and police appear to be sexist for treating peeping criminals against women so lightly.
  • Bapak: Now we understand why so many youngsters have to consult IMH. They are so confused taking completely naked pix...
  • No Dafts or Dogs Allowed: The fire had already started long ago. Problem is 70% daft frogs are still sitting on it....
  • Flabbergasted: what happened to our champion of rights, san-mu-kan ? so quiet over this episode? say something lah,...
  • patriot of TUMASIK: Cry for Thatman: Sorry, I disagree (btw, I didn’t thumb you down, apparently someone...
  • Great Asia: Those people listed are all angmoh worshipping Bananas. They are just leftist or Rightist Bananas! All...
  • AristoCATs cant Handle d Truth: > SG ” is not ready for a minority PM” - It is Fake News - Just like...
  • Great Asia: Democracy, Equality, Justice, Peace & Progress.?!!!! Democracy = The Bible = Christianity = A...
  • patriot of TUMASIK: FAKE all the WAY…with Fake 1st World status leading The WAY!!! and FAKE is a four letter...
Announcements
Advertisements
Visitors Statistic
Latest Statistic
Advertisements