HYFLUX NEW APPLICATION?

[rosemummy]

hquek:

Am considering this also. Thing is, Hyflux dividend is not fantastic - about 1.5% thereabouts (based on Friday's closing price).


Thus, I'm not certain how the preference share will pan out. The only consolation is that if pref shareholders don't get dividends, this will roll over to future years? and ordinary shareholders won't get a cent too. Am I right?

Thanks.

If the company do well in future, the ordinary shareholders can get higher dividends plus appreciation in the share price. Preference shareholders will get just the fixed rate of 6% (or 8% if it doesn't get redeemed after 7 years). The preference shareholders don't get to participate in the upside at all. Really depends on your view of the company's prospects. If you're optimistic, go for the ordinary shares.

[QuiteKSMum]

financial_guru wrote :[quote]Are you looking around for something to invest in?

Can I know your expected investment time horizon (how many years?) and risk appetite (low, medium, high)?[/quote]My own risk appetite is at most a medium. Time horizon? - between 5 -8 yrs.
This is my \"appetite\", need to \"coordinate\" with DH's. Will feedback once I get a clearer picture.

Thanks.

[financial_guru]

hquek:

Am considering this also. Thing is, Hyflux dividend is not fantastic - about 1.5% thereabouts (based on Friday's closing price).


Thus, I'm not certain how the preference share will pan out. The only consolation is that if pref shareholders don't get dividends, this will roll over to future years? and ordinary shareholders won't get a cent too. Am I right?

Thanks.

Hquek, what's your risk appetite like? Do you already have an existing stock portfolio or is this your 1st pref share consideration?

[financial_guru]

QuiteKSMum:

My own risk appetite is at most a medium. Time horizon? - between 5 -8 yrs.
This is my \"appetite\", need to \"coordinate\" with DH's. Will feedback once I get a clearer picture.

Thanks.

Actually v clear already!

Usually from my experience, the wife's risk appetite is lower than the hubby.

In my humble opinion, this issue may not be suitable for you. I'll classify it closer to high risk and this pref share is a perpetual issue. Hyflux may choose never to redeem and you'll have to find a secondary buyer on the market if you want to cash out after 8 yrs.

[QuiteKSMum]

Hi financial_guru,


You're right. I've already decided to give this a miss - too much uncertainties and too many unknowns...

Thanks.

[financial_guru]

QuiteKSMum:

Hi financial_guru,


You're right. I've already decided to give this a miss - too much uncertainties and too many unknowns...

Thanks.

No problem. Some of us don't like uncertainty and unknown. Let me know if you're still interested in investing though. There are lower-risk investments around that can get 2-4% PA.

[micollh]

financial_guru:

No problem. Some of us don't like uncertainty and unknown. Let me know if you're still interested in investing though. There are lower-risk investments around that can get 2-4% PA.

hi, any investment for kids ? beside FD/bond, i buy share for my kids, as their dividens is better than FD.. any insight to share? since they wont need the money now, i intend to invest for them.. they can keep longer 5 to 10 years period .

[QuiteKSMum]

Hi financial_guru,


I’ve pm you.

[verykiasu2010]

financial_guru:

QuiteKSMum:

My own risk appetite is at most a medium. Time horizon? - between 5 -8 yrs.
This is my \"appetite\", need to \"coordinate\" with DH's. Will feedback once I get a clearer picture.

Thanks.

Actually v clear already!

Usually from my experience, the wife's risk appetite is lower than the hubby.

In my humble opinion, this issue may not be suitable for you. I'll classify it closer to high risk and this pref share is a perpetual issue. Hyflux may choose never to redeem and you'll have to find a secondary buyer on the market if you want to cash out after 8 yrs.

so this is not traded on the Exchange ? sorry for the silly question as i am out of town

[verykiasu2010]

financial_guru:

verykiasu2010:

how certain is Hyflux's collection / payment from those overseas water plant ?

May not be certain..thats the risk you're taking by buying their pref shares.
You'll have to judge whether the 6% they're offering is worth the risk.

They have water treatment projects ongoing in several arab countries.
I recalled that they were affected by the ongoing war in Libya.

Hyflux's risk of not getting paid by their overseas water plants customers is the same whether is pref or ordinary shares, right ?