Sammyboy Exclusive

[Hangover]

Make 24%pa, as good as credit card companies

Some people faced margin-calls and forced to offload multi-millions worth of Hyflux Preference Shares (Important Note: Stock Code N2H). However, there is little liquidity in Singapore market and it sent the prices of N2H crashing to 92-93 level recently.

Assuming if you buy at 93 (including commission) + another 3% semi-annual interests, you reap 10% five months when Hyflux redeems these preference shares in April 2018 at par (100). It is like 2% per month or 24%pa which is better than some pawn shops that charges 1% per month to their clients.

caveat emptor, everything has risk:

• Hyflux is burning about $20-30 million every quarter for the Tuaspring project that they are stuck in. They are trying to dispose it and the disposal of Tusapring will strengthen their cashflow which is positive for the bondholders, but faces some write-offs for their ordinary shareholders.
• Hyflux might choose not to redeem these preference shares. It is at their discretion. However, failure to do so equates to a technical-default which will make bankers recall or reduce their loan facilities. So in all likelihood, Hyflux will choose to honour her debt obligations.
• If Hyflux don't redeem the preference shares, the annual coupon will increase to 8% to par, and if assuming you buy at 93, this is like 8.6%pa per annums. It is still better than holding a 8% debt from an oil and gas company.

There is a always a risk that Hyflux can go bust, but they are not Noble. If theyput themselves up for sales, many will want to buy their to control part of Singapore (and other countries') water infrastructure. Their business model is still sound and good, they are just bleeding because of Tuaspring.

 

[Hangover]

A perpetual 4D ticket... ...Pay Once and bet until you win.

City Development Preference Shares (Retail) CityDev NCCPS (Stock code: C70) was issued about 14 years ago. City Dev issued it to utilize some tax-credits. THERE IS NO REDEMPTION DATE for this Preference Share, not even a call-date (to redeem). This preference share will might never be redeemed.

Then what is the catch?

Benefits
For every share, it gives 3.9 cents annually:

• If it never redeems, this gives better yield than CPF-OA account (only 2.5% return).
• It is good for parking my children savings (only 0.1% from POSB).
• It is good for retirement (City Development is reliable). The current price is $1.14-1.18, with a 3.9 cents payout annually, the yield is about 3.3%pa.

If the company triggers the redemption (tomorrow, next month, next year or next decade), the payout is $0.64 per share + 0.136 of City Development's ordinary share.

• City Development ordinary share is worth about $12+ now, so any redemption NOW will see a $2.30 payout (about 100% gain)
• If City Development ordinary share crashed to $3.50 (Armageddon), the redemption payout will be $1.15 (near current cost). You can probably buy a lot of blue-chips cheaply with the payout when City Development crashes to $3.50.

Over $330mio of this preference shares was issued. Today, it is widely held by estates, rich people, retirees. Think of it this way, this preference share is like a property with a hassle-free + tax-free rental income of 3.5%pa with an EN-BLOC potential of 100% payout gain.
This is easier than buying a property.


Frequently Asked Questions
1: What if City Development redeems their preference shares at current level?
Congrats, it is a windfall.

2. What if City Development redeems their preference shares when their ordinary shares crashed?
If City Development ordinary shares crashed to $3.50 or below during a recession, I think a lot of blue-chips will be priced at a small-fraction of today' s value. The money from redemption payment can be used to buy other blue-chips eg. Banks, cheaply.

3: What if City Development never redeem their preference shares?
- It is still a good 3.3% tax-free income (comparable with rental incomes).
- In 2007, the company hinted about the redemption and the preference share shot up to $2.
- In 2012, the company hinted about redemption and the preference share shot up to almost $1.20+.
- There are always chances to sell for a decent profit even without redemption.
- The historical low is $0.80 (for only a few days). 80% of the time, this share trades at appx $1.10-1.20 level and 10-15% of the time, it trades higher than that. (Offering a profitable exit before redemption)


Pros:
- Tax-free regular income and hassle-free with potential capital gains when redeemed
- Investment grade company like our local banks, safer than Capitaland
- Better than insurance. Bonus payouts for insurance happens only with our death, and we don't need to bet our lives to enjoy a bonus payout.
- This is the only financial instrument of such nature in Singapore from a reputable issuer. Most people or estates, just buy and keep with their spare cash.


Cons:
- City Development might never redeem it (forever)
- City Development might default on the coupon (non-cumulative) but the cost of paying the interests annually is less than $13mio (chicken-feet) for City Dev. If they cannot pay preference shares dividend, all dividends for ordinary shares will automatically cease for that year.
- There are only small quantity available for sale daily (good sign), you have to accumulate this counter slowly.
- If you need the money urgently (to cash out), you might lose a bit of capital (or make a tiny bit).



Give your kids this perpetual 4D ticket.

 

[Scrooball (clone)]

Just take out CPF and dump into bitcoin. Do or Die. If crash, then u still go back to working in McDonald's.

 

[CoffeeAhSoh]

Just take out CPF and dump into bitcoin. Do or Die. If crash, then u still go back to working in McDonald's.

.
how to buy Bitcoin in singapore ?

can buy online ?

 

[Leongsam]

.
how to buy Bitcoin in singapore ?

can buy online ?

 

[Hangover]

Just take out CPF and dump into bitcoin. Do or Die. If crash, then u still go back to working in McDonald's.

Good morning,

Yes, you can use CPF to pay for the Hyflux or City Development Preference Shares.

For Bitcoin, boss sam's charts shows that Bitcoin does flash-crash every 3-6 months, so timing is essential.

 

[Hangover]

Avoid Physical Gold & Silver Investment

Bitcoin has more transparency than Physical Gold & Silver investment. During spikes in Gold or silver prices, precious metal traders will give you 101 reasons to reject your sales of precious metals back to them. Even if the seal is not broken from a renowned refinery, eg PAMP, they will bring out their machines to say that the purity of a particular bar is not 99.9, although the machine shows >99%. The unfair practice is adopted by even the more reputable precious metal dealers (Non-bank) in Singapore. Lastly, you will expect a wider buy-sell spread when investment in precious metals.

 

[virus]

no... gold and silver is faced with FEDs, Big Banks and other financial agencies manipulation stopping them from climbing. Bitcoin is not surrounded by these same restriction n control, and a losing base of fanboys.

 

[gatehousethetinkertailor]