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Thursday, 13 July 2017

Netlink Trust IPO - who benefits the most?


If you answered Singtel shareholders... Not bad. You close.


Big daddy lah!


Or to be precise, Temasek. 


Smart people.



Perspective from not bei kambing retail investor  

Those of us who have core holdings that we've owned for ages. Would you sell 75% of a stock that's still growing, performing, and giving you good dividends?

You only do so when the reasons you bought have changed.

Or the valuations have gotten a bit "rich". You take some money off the table... (risk management, re-balancing that sort of stuff)

Talking about risk management. If you have taken too much debt/leverage in your margin account, paying it down is prudent. But you don't sell your crown jewels, do you?

Anyway, if you are a yield hog, you wouldn't want to "share" away 75% of your future dividends right? Got fantastic dividend stock you want to keep 100% of the dividends right?

And if you super bullish on the dividend stock's future prospects, you even will forgo cash and opt for your dividends to be paid in scripts instead. You know, delayed gratification so you don't consume the golden eggs to compond dividends on dividends! You smarter than smart!



Perspective from retail speculative trader

Worth a punt. Maybe.

You stag the IPO.



Animal Farm

Yup, we have bulls, bears, hogs, and now stags. 

Oh! How can I forget bei kambings (little white lamb)?

Where you have lambs, you'll find wolves too.

Who are wolves?

If you don't know, you are bei kambing! (Don't get offended. That's how you tell mah!)





8 comments:

  1. So hard to avoid becoming bei
    kamping. Only got talk on how to avoid?

    ReplyDelete
    Replies
    1. CW,

      EVERYONE of us started out as bei kambing ;)


      Maybe its just me.

      I've grown too mature for punting IPOs via ATMs, yet my trading volume is too small to qualify for private placements :(

      IPOs are not interesting when you have outgrown applying for them through ATMs - I mean how many lots can you get?

      At best its a "windfall" of a few hundreds to a few thousands. We can easily get that from our normal plain vanilla buys and sells. Just saying...

      On the other hand, if we have enough trading volumes with our brokers to "tip" them into giving us a cut of the IPO private placement, that's another story!

      Alas my trading style does not feed my broker enough for them to treat me as "VIP" :(


      I've never liked any IPOs where the main reason for listing is to pare down debt. Like that I might as well "play" the mother share as in Singtel?

      I much prefer IPOs where the owners take the money to fund their exponential growth. 10 baggers anyone?


      Anyway, I am super impressed with Li Ka-shing when he IPOed his HPH Trust at USD1.01 raising USD5.5 billion.

      Now that's taking money off the table! Watch and learn what people DO ;)

      Anytime he feels like it, he can take HPH Trust private by paying a 20% "premium" over the last traded price and still appear to be "generous" ;)


      Delete
    2. Hi SMOL,

      A year or so back, some bloggers were praising a certain REIT to the heavens. When I did my due diligence, I realized that the sponsor did a list, delist, relist stunt.

      The management 不简单, so I stayed out. Looks like I was right.

      Delete
    3. Unintelligent Nerd,

      Of course we can read or listen to the opinions of others.

      But we still have to do our own thinking. And ulimately make our own decisions.

      Only then can we improve and grow as an investor. Crash got sound is a excellent feedback to what we thought we knew!

      If we outsource thinking to others, then even if we spend 10 years "investing", it will only be first year of newbieness multiplied by 10.

      Sometimes I amazed at some "veteran" investors. Got 20 to 30 years of living through several bull/bear cycles... Although cannot say they "bei kambing" - they not young anymore - but they still very "white"...


      Delete
  2. Netlink Trust is the broadband arm of Singtel, as part of the infocomm regulator requirements, Singtel is forced to divest itself of more than 75 per cent of NetLink Trust.

    I guess it is mandatory to divest...

    ReplyDelete
    Replies
    1. blanc fable,

      M1, Starhub, and Singtel share the same ultimate big daddy.

      Or puppet master ;)


      CitiSpring Infrastructure Trust merger with Keppel Infrastructure Trust.

      POSB merger with DBS.

      Don't say "forced".

      Let's just say someone made a decision ;)


      Delete
  3. Well, Singtel is the nearest we could get as a Shareholder to benefit from it. Mortal man ... bo pian ! Huat ah !

    ReplyDelete
    Replies
    1. Cory,

      Follow the money trail!

      Freeloaders must do what freeloaders do ;)

      And don't overstay our welcome!




      Delete

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