Author Topic: Casino Stocks  (Read 219013 times)

Offline zuolun

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Re: Casino Stocks
« Reply #1600 on: August 31, 2019, 10:12:16 AM »
苏小妹:

I never like S-REITs.

还好在ESR-Reit与Viva Ind Tr合并之前,你已经卖掉Viva Ind Tr 的股票了!

Note:
  • ESR REIT has a debt-to-asset ratio of 42%. This is just a whisker away from the 45% regulatory ceiling imposed on REITs in Singapore.
  • ESR-REIT has a P/B ratio of 1.11 and a trailing distribution yield of 6.4%.
ESR-Reit ~ Trading in an upward sloping channel

ESR-Reit closed with a doji @ S$0.51 (+0.005,+-1%) with 10.9m shares on 30 Aug 2019.

Immediate support @ S$0.50, immediate resistance @ S$0.525.



ESR-Reit ~ Trading in an upward sloping channel

ESR-Reit gapped down and closed with a spinning top @ S$0.53 (-0.035, -6.2%) with extremely high volume done at 53.8m shares on 18 Jun 2019.

Immediate support @ S$0.515, immediate resistance @ S$0.54.



Are mergers and acquisitions always good for investors?

By Royston Yang
31 January 2019

There's nothing which graces the headlines and makes business news more exciting than mergers and acquisition (M&A) announcements.

With the desire to grow larger and get better, more and more companies are on an acquisition spree to turbo-charge their growth and to create more "shareholder value". Investors who are on the receiving end of such announcements from the companies within their portfolio should carefully scrutinise the deals as M&A do not always turn out well. The devil, as they say, is in the details and this article attempts to explain the good and the bad when it comes to M&A.

The Lowdown On M&A
Companies undertake M&A for a variety of reasons, from the need to integrate a new product line or lines (buying instead of building one shortens the process), acquiring a new complementary set of customers, diversifying away from their core business or simply adding on to their existing capabilities. Whatever the reasons, investors should look at several aspects to ascertain if the transactions are good or bad.
  • Price paid and valuation – What was the total amount of money paid for the deal? Did the company over-pay or are they getting a good deal? It’s important to drill down into the valuation paid and not just look at the headline number. For example, if the acquisition costs $100 million and the acquired company generates $10 million in net profit each year, this means the acquisition was made at 10x earnings, which is considered cheap. The rule of thumb is anything above 15x earnings would be considered “expensive”, though of course, this varies according to the industry.
  • Supposed benefits – Look at what management communicates to shareholders regarding the benefits of the M&A. Does it result in better earnings visibility, wider customer base or product portfolio or some other tangible benefit? Be careful of general terms such as “synergies” which do not provide specific details on how the M&A will benefit the acquirer.
  • Funding for the acquisition – How is the acquisition funded? Using the company’s internal resources and based off free cash flow generation, or via a higher level of borrowings? This is important as it demonstrates if management may be biting off more than they can chew. The infamous leveraged buy-outs in the late 1990s, where companies borrowed aggressively to fund expensive acquisitions, turned out to be a grave mistake as many of these M&A subsequently fared poorly.
Assessing And Monitoring M&A
As investors, I believe we should continue to monitor and assess if the M&A performed well over time, to decide on whether the company had made a good or poor acquisition. Study the disclosures made of the new division or acquisition (assuming the company discloses such numbers) to determine if it is performing well or poorly. The time horizon should be anything from one year to three years, so this can be a long-drawn process.

The Foolish Bottom Line
M&A can be complex, and it’s not easy for the investor to assess if an M&A is good or bad unless he monitors it. A company may also have a track record of successful M&A which an investor can rely on for psychological comfort. The bottom line is that M&As are not always beneficial, and the investor should be aware of this.

Offline zuolun

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Re: Casino Stocks
« Reply #1601 on: August 31, 2019, 10:18:19 AM »
苏小妹:

ESR-Reit Vs Accordia Golf Trust 有什么差别?


ESR-Reit ~ Trading in an upward sloping channel

ESR-Reit closed with a doji @ S$0.51 (+0.005,+-1%) with 10.9m shares on 30 Aug 2019.

Immediate support @ S$0.50, immediate resistance @ S$0.525.



Accordia Golf Trust ~ Bearish Island Reversal, interim TP S$0.475

Accordia Golf Trust closed with a black marubozu @ S$0.53 (-0.005, -0.9%) with 770,000 shares done on 30 Aug 2019.

Immediate support @ S$0.525, immediate resistance @ S$0.545.


Offline zuolun

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Re: Casino Stocks
« Reply #1602 on: August 31, 2019, 01:27:08 PM »
MyEG 赚幅不到50% ~ 30 Aug 2019
https://www.youtube.com/watch?v=07ANyehefSM

MYEG ~ Symmetrical Triangle formation, strong resistance @ RM1.80

MYEG closed with a white marubozu @ RM1.42 (+0.06, +4.4%) with 13.8m shares done on 30 Aug 2019.

Immediate support @ RM1.30, immediate resistance @ RM1.50.



MYEG ~ Symmetrical Triangle Formation, strong resistance @ RM1.80

MYEG closed with a spinning top @ RM1.59 (-0.01, -0.6%) with 11.8m shares done on 2 Aug 2019.

Immediate support @ RM1.54, immediate resistance @ RM1.695.


Offline zuolun

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Re: Casino Stocks
« Reply #1603 on: August 31, 2019, 02:10:24 PM »
Ex-Foxconn chairman Terry Gou loses Taiwan presidential primary ~ 15 Jul 2019
https://madison.com/wsj/business/ex-foxconn-chairman-terry-gou-loses-taiwan-presidential-primary/article_48f21e7e-bffe-5668-b36d-ebae0ba83cbb.html
The Nationalist Party said Han Kuo-yu had won the presidential primary after opinion poll results gave him a 45% support rating. He defeated four other candidates including former Foxconn Technology chairman Terry Gou and will face incumbent Tsai Ing-wen in the January election.

選總統自清經營媒體疑雲 郭台銘轉讓APTT 20%股權給呂芳銘 ~ 3 Jul 2019
https://www.storm.mg/article/1447330
前鴻海董事長郭台銘與亞太電信董事長呂芳銘2016到2017年間用個人名義,買下台灣寬頻(TBC)上層控股公司麥格理APTT,拿下台灣寬頻通訊(TBC)管理權並通過國家通訊傳播委員會(NCC)審查,成為媒體大亨,NCC今天證實,郭台銘已將持股全部出脫,轉移給呂芳銘。

Asian Pay TV Trust up 22% as Foxconn-linked manager mulls options~ 16 Apr 2019
https://headtopics.com/sg/asian-pay-tv-trust-up-22-as-foxconn-linked-manager-mulls-options-5340680
Concerns have been raised over 'privatisation on the cheap' since the dividend cut last year, but its CEO says aim is to extract value for unitholders.

Asian Pay Television Trust ~ Trading in an upward sloping channel

APTT closed with a gravestone doji unchanged @ S$0.169 with 970,000 shares done on 30 Aug 2019.

Immediate support @ S$0.16, immediate resistance @ S$0.18.



Asian Pay Television Trust ~ A stair-step decline chart pattern

APTT gapped down with a hammer and closed @ S$0.16 (-0.155, -49.2%) with 2.73m shares done on 14 Nov 2018.

Immediate support @ S$0.15, immediate resistance @ S$0.19.


Offline zuolun

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Re: Casino Stocks
« Reply #1604 on: August 31, 2019, 02:18:49 PM »
苏小妹:

Where is the technical damage on MYEG and APTT charts?


MYEG ~ Symmetrical Triangle formation, strong resistance @ RM1.80

MYEG closed with a white marubozu @ RM1.42 (+0.06, +4.4%) with 13.8m shares done on 30 Aug 2019.

Immediate support @ RM1.30, immediate resistance @ RM1.50.



Asian Pay Television Trust ~ Trading in an upward sloping channel

APTT closed with a gravestone doji unchanged @ S$0.169 with 970,000 shares done on 30 Aug 2019.

Immediate support @ S$0.16, immediate resistance @ S$0.18.


Offline zuolun

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Re: Casino Stocks
« Reply #1605 on: September 01, 2019, 04:04:48 PM »
李嘉诚撤离砸4000亿给英国,这个香港富豪却携138亿“进军”内地 ~ 24 Aug 2019
http://www.sohu.com/a/336171862_100120495
香港经过几十年的发展,四大家族依旧屹立不倒。根据胡润研究院发布的《2019胡润全球富豪榜》显示,李嘉诚家族身价2057亿元,李兆基家族身价1915亿元,郑裕彤家族身价1205亿,郭炳联家族身价574亿,都处于顶级富豪行列。

香港四大地产家族身家大幅缩水 ~ 23 Aug 2019
https://news.sina.com.cn/c/2019-08-24/doc-ihytcitn1429508.shtml
李嘉诚家族、李兆基家族、郭得胜家族、郑裕彤家族四大地产家族旗下上市房企长实集团、恒基地产、新鸿基地产、新世界发展市值共蒸发近1013亿港元。

Man Oriental ~ Trading in a downward sloping channel, interim TP US$1.25

Man Oriental closed with an inverted hammer unchanged @ US$1.39 with 470,000 shares done on 30 Aug 2019.

Immediate support @ US$1.36, immediate resistance @ US$1.45.



Why one of Asia’s richest men is buying a British pub business right before Brexit ~ 24 Aug 2019
https://fortune.com/2019/08/24/li-ka-shing-ck-asset-greene-king/
The Lis have appeared to move their money westwards more quickly since 2014. That was the year when Hong Kong’s population flocked to the streets to protest reforms to the city’s electoral law, which gave Beijing the right to screen candidates for the Legislative Council. Within a year, the family sold off chunks of its retail and electricity holdings to Singaporean and Qatari sovereign wealth funds, bought U.K. rolling stock company Eversholt Rail, and bid $14 billion for mobile network operator O2, controlled by Spain’s Telefonica, hoping to merge it with its own telecom assets that operate under the ‘3’ brand. EU antitrust regulators blocked that deal, however.



非法示威冲击香港地产旅游等行业 港府关注金融安全 ~ 23 Aug 2019
http://www.chinanews.com/ga/2019/08-23/8935779.shtml
近期,香港非法示威和暴力冲击不断,导致访港客流量跌幅扩大,冲击香港旅游业和零售业。

Hong Kong hotels in crisis as protests deter Chinese tourists ~ 16 Aug 2019
https://www.chinatravelnews.com/article/131179




Offline zuolun

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Re: Casino Stocks
« Reply #1606 on: September 01, 2019, 04:57:34 PM »
MahSing ~ Trading in a downward sloping channel, interim TP RM0.79

MahSing closed with a spinning top unchanged @ RM0.865 with 630,000 shares done on 30 Aug 2019.

Immediate support @ RM0.85, immediate resistance @ RM0.89.



Singapore faces rising tide of bad debt with record bonds maturing ~ 27 Aug 2019
https://www.theedgesingapore.com/capital/singapore-economy/singapore-faces-rising-tide-bad-debt-record-bonds-maturing
  • Growth forecast cut to almost zero, recession fears loom.
  • Local currency bonds face record S$12 billion maturing in 2020.


A recession in Singapore likely to impact Johor as well ~ 20 Aug 2019
https://www.thestar.com.my/news/nation/2019/08/20/a-recession-in-singapore-likely-to-impact-johor-as-well
  • Johor looks likely to be affected by Singapore’s slide into recession following a big drop in the republic’s economic activities in the second quarter of the year.
  • “The first to go – should businesses in Singapore downsize their operations – will be the thousands of Malaysians who live here but work there."
  • “If their jobs are not secure, they will face problems servicing bank loans as many of them have bought houses here especially in the Iskandar Malaysia region.”


Time to exorcise the ghosts of 97/98 and unleash the animal spirits of the private sector ~ 19 Aug 2019
https://www.theedgemarkets.com/article/cover-story-time-exorcise-ghosts-9798
Consumption has grown strongly since 2008, but with debt, not rising incomes
  • Private consumption, in particular, has grown well above GDP growth rates since 2008 under the stewardship of former prime minister Najib Razak.
  • In the 10 years under his leadership, Malaysia’s economic growth was super-charged by private consumption and, to a lesser extent, government spending. Between 2008 and 2018, consumption grew at a CAGR of 7.3% on average, while government spending expanded at an average compound rate of 5.1%. As a result, consumption as a percentage of GDP rose from 44.7% to 57.3% over the same period.
  • Households went on a debt-fuelled spending binge. Household debt-to-GDP rose from 63.9% in 2008 to as high as 89.1% in 2015 before Bank Negara tightened credit requirements to contain indebtedness.
  • The economy grew at a CAGR of 4.7% on average in the past decade — pushed up by the consumption binge that was paid for with debt.
  • Without this spending surge, if we assume a constant consumption to GDP ratio of 44.7% (as it was in 2008), Malaysia’s GDP growth would have been only 2% on average (taking into account the actual government spending, investments and net exports) — instead of the reported 4.7%.

Offline zuolun

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Re: Casino Stocks
« Reply #1607 on: September 01, 2019, 05:34:26 PM »
苏小妹:

Man Oriental and MahSing charts have similar characteristics:

https://www.youtube.com/watch?v=MhfhNzbGtAs
  • Bearish Linear Regression Channel at 45°
  • Bearish Descending Triangle Breakout
Man Oriental ~ Trading in a downward sloping channel, interim TP US$1.25

Man Oriental closed with an inverted hammer unchanged @ US$1.39 with 470,000 shares done on 30 Aug 2019.

Immediate support @ US$1.36, immediate resistance @ US$1.45.



MahSing ~ Trading in a downward sloping channel, interim TP RM0.79

MahSing closed with a spinning top unchanged @ RM0.865 with 630,000 shares done on 30 Aug 2019.

Immediate support @ RM0.85, immediate resistance @ RM0.89.


Offline zuolun

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Re: Casino Stocks
« Reply #1608 on: September 01, 2019, 06:14:56 PM »
苏小妹:

政治与金融市场是息息相关的。由其是政府和上市公司掌舵人的官商关系,一旦有政变,上市公司与新政府肯定会有利益冲突的。(马来西亚的政变就是一个很好的例子。)

Retrials ordered for ex-South Korean leader Park and Samsung heir ~ 29 Aug 2019
https://www.theonlinecitizen.com/2019/08/29/retrials-ordered-*-and-samsung-heir/
Their trials highlighted shady links between big business and politics in South Korea, with Park and her close friend Choi Soon-sil accused of taking bribes from corporate bigwigs in exchange for preferential treatment.

Explained: why Samsung heir’s corruption case poses a new test for embattled South Korean firm ~ 29 Aug 2019
https://www.scmp.com/week-asia/explained/article/3024755/explained-why-samsung-heirs-corruption-case-poses-new-test
  • Samsung Group heir Lee Jae-yong was freed from jail in February after serving one year for his involvement in a corruption case – but he may be sent back behind bars if the Supreme Court rules against him.
  • This comes as the company reels from export curbs by Japan and ongoing economic uncertainty worsened by the US-China trade war.



Offline zuolun

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Re: Casino Stocks
« Reply #1609 on: September 02, 2019, 01:38:39 PM »
SIA Engineering 1Q earnings up 2.7% at $41.6 mil on higher operating profit ~ 26 Jul 2019
https://www.theedgesingapore.com/capital/results/sia-engineering-1q-earnings-27-416-mil-higher-operating-profit

Is SIA Engineering’s share price spike an indication of possible privatisation? ~ 8 Jul 2019
https://www.theedgesingapore.com/capital/investing-idea/sia-engineering%E2%80%99s-share-price-spike-indication-possible-privatisation
SIAEC shares had risen by 8.6% to hit a near 12-month high of 2.96 cents, before closing 21 cents higher at $2.72 with nearly 11m shares traded. In a report by DBS Group Research report which had previously highlighted the possibility of a merger with ST Engineering or a privatisation by its 78% owner, lead analyst Suvro Sarkar says the benefits of keeping SIAEC listed are few and far between.

SIA Engg ~ Trading in a downward sloping channel, interim TP S$2.13, next TP S$1.89

SIA Engg closed with a spinning top @ S$2.43 (+0.01, +0.4%) with 520,000 shares done on 30 Aug 2019.

Immediate support @ S$2.34, immediate resistance @ S$2.48.



SIA Engg ~ Bullish Intermediate Trend Reversal (Dead Cat Bounce)

SIA Engg gapped down and closed with a black marubozu @ S$2.39 (-0.13, -5.2%) with 1.36m shares done on 11 Feb 2019.

Immediate support @ S$2.30, immediate resistance @ S$2.44.


SIA Engg ~ Bearish Descending Triangle Breakout, interim TP S$2.40, next TP S$2.05

SIA Engg closed with a hammer @ S$2.58 (-0.03, -1.9%) with 860,000 shares done on 16 Nov 2018.

Immediate support @ S$2.50, immediate resistance @ S$2.62.


Offline zuolun

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Re: Casino Stocks
« Reply #1610 on: September 02, 2019, 03:21:07 PM »
Flying from Malaysia? RM8-RM150 departure tax imposed from Sept 1 ~ 2 Aug 2019
https://www.malaymail.com/news/malaysia/2019/08/02/flying-out-from-malaysia-rm8-rm150-departure-tax-imposed-from-sept-1/1776973

AmInvestment maintains Hold on OWG, raises TP to 71 sen ~ 29 Jul 2019
https://www.thestar.com.my/business/business-news/2019/07/29/aminvestment-maintains-hold-on-owg-raises-tp-to-71-sen
AmInvestment cut its OWG earnings foreast for FY19F from a core net profit of RM2.9mil to a loss of RM5.4mil to account for the RM5.7mil loss in 3QFY17 on the back of lower business volume in its The Top, Komtar Tower operations.

OWG (5260) ~ Trading in a downward sloping channel, interim TP RM0.46, next TP RM0.32

OWG closed with a spinning top @ RM0.555 (-0.015, -2.6%) with1.40m shares done on 30 Aug 2019.

Immediate support @ RM0.51, immediate resistance @ RM0.58.



OWG (5260) ~ Double Bottom Formation

OWG closed with a hammer @ RM0.51 (+0.005, +1%) with thin volume done at 36,300 shares on 24 Jun 2019.

Critical support @ RM0.46, immediate resistance @ RM0.535.


OWG (5260) ~ Bearish Descending Triangle Breakout, interim TP RM0.37

OWG closed with a black marubozu @ RM0.485 (-0.135, -21.8%) with 13.4m shares done on 27 Nov 2018.

Immediate support @ RM0.44, immediate resistance @ RM0.595.


Offline zuolun

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Re: Casino Stocks
« Reply #1611 on: September 02, 2019, 03:35:06 PM »
苏小妹:

“Never average losses by, for example, buying more of a stock that has fallen” ~ Jesse Livermore

SIA Engg and OWG charts have similar characteristics:

https://www.youtube.com/watch?v=MhfhNzbGtAs
  • Bearish Linear Regression Channel at 45°
  • Bearish Descending Triangle Breakout
SIA Engg ~ Trading in a downward sloping channel, interim TP S$2.13, next TP S$1.89

SIA Engg closed with a spinning top @ S$2.43 (+0.01, +0.4%) with 520,000 shares done on 30 Aug 2019.

Immediate support @ S$2.34, immediate resistance @ S$2.48.



OWG (5260) ~ Trading in a downward sloping channel, interim TP RM0.46, next TP RM0.32

OWG closed with a spinning top @ RM0.555 (-0.015, -2.6%) with1.40m shares done on 30 Aug 2019.

Immediate support @ RM0.51, immediate resistance @ RM0.58.


Offline zuolun

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Re: Casino Stocks
« Reply #1612 on: September 03, 2019, 09:49:32 AM »
Kenanga Research maintained 'market perform' on Thong Guan, TP RM2.45 ~ 29 Aug 2019
https://kenanga.com.my/wp-content/uploads/2019/08/TGUAN-190829-2Q19-RN.pdf

A major U.S. toy company is phasing out plastic — but not in its toys ~ 22 Aug 2019
https://www.vox.com/the-goods/2019/8/22/20828660/hasbro-toys-plastic-packaging-recyclable
Hasbro is starting by eliminating plastic packaging in new products.

Hasbro says it’s game over for plastic packaging ~ 20 Aug 2019
https://www.forbes.com/sites/joanverdon/2019/08/20/hasbro-says-its-game-over-for-plastic-packaging/
Toy manufacturer Hasbro said today that it is eliminating plastic from its product packaging. It plans to phase out plastic bags, shrink wrap, and other forms of plastic packaging by the end of 2022.

TGUAN ~ Symmetrical Triangle, downside biased

TGUAN closed with a doji @ RM2.46 (-0.01, -0.4%) with 200,000 shares done on 30 Aug 2019.

Immediate support @ RM2.40, immediate resistance @ RM2.49.



Performance chart of Malaysia plastic packaging products manufacturers ~ 30 Aug 2019


Offline zuolun

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Re: Casino Stocks
« Reply #1613 on: September 03, 2019, 12:30:13 PM »
SP Setia ~ Trading in a downward sloping channel, TP RM1.17

SP Setia closed with a white marubozu @ RM1.56 (+0.09, +6.1%) with 2.26m shares done on 30 Aug 2019.

Immediate support @ RM1.47, immediate resistance @ RM1.60.



SP Setia ~ Trading in a downward sloping channel, interim TP RM1.55

SP Setia closed with an inverted hammer unchanged @ RM1.84 with 1.17m shares done on 9 Aug 2019.

Immediate support @ RM1.75, immediate resistance @ RM1.87.



Pound to Euro exchange rates: Sterling unstable against the Euro owing to Brexit uncertainty ~ 30 Aug 2019
https://www.poundsterlingforecast.com/2019/08/pound-to-euro-exchange-rates-sterling-unstable-against-the-euro-owing-to-brexit-uncertainty/

The Euro-Dollar charts point lower and a recession in Germany "just moved one step closer" ~ 30 Aug 2019
https://www.poundsterlinglive.com/eurusd/11961-euro-dollar-seen-heading-lower-as-german-domestic-economy-cracks-and-inflation-slides

Battersea project contributions seen for S P Setia from FY21 ~ 16 Aug 2019
https://www.edgeprop.my/content/1574799/battersea-project-contributions-seen-s-p-setia-fy21
CGS-CIMB Research maintained “hold” on S P Setia TP lowered to RM1.90.

Investor sentiment in Battersea project still strong ~ 25 Jun 2019
https://www.youtube.com/watch?v=Ke7QRgaprDM

伦敦巴特西迷雾:一桩自导自演的诡异交易 ~ 2 Feb 2018
http://www.guandian.cn/blogComment/20180202/197262.html
  • 事已至此,项目很大可能将面临亏损,但马来西亚投资方为了保证巴特西发电站项目能够顺利竣工,即便成本严重超支也要继续注资,于是乎便发生了开头所说的用马来政府资金为伦敦城市更新项目兜底的奇观。
  • 另外值得一提的是,马来西亚将在2018年3-4月举行大选,当时极力支持收购巴特西发电站的纳吉布正在寻求连任总理,即便是为了当下的选票和颜面,这个项目也显得不容有失。
  • 总结来说,梳理完巴特西发电站的前世今生,我们看到整件事最大的赢家无疑是“狂褥前殖民地羊毛”的英国人,自己一分钱不出,却能让马来西亚政府心甘情愿用国家资金帮伦敦做历史建筑改建和城市再生,可谓好处占尽,不愧是“空手套白狼”方面的大师!


Are mergers and acquisitions always good for investors?

By Royston Yang
31 January 2019

There's nothing which graces the headlines and makes business news more exciting than mergers and acquisition (M&A) announcements.

With the desire to grow larger and get better, more and more companies are on an acquisition spree to turbo-charge their growth and to create more "shareholder value". Investors who are on the receiving end of such announcements from the companies within their portfolio should carefully scrutinise the deals as M&A do not always turn out well. The devil, as they say, is in the details and this article attempts to explain the good and the bad when it comes to M&A.

The Lowdown On M&A
Companies undertake M&A for a variety of reasons, from the need to integrate a new product line or lines (buying instead of building one shortens the process), acquiring a new complementary set of customers, diversifying away from their core business or simply adding on to their existing capabilities. Whatever the reasons, investors should look at several aspects to ascertain if the transactions are good or bad.
  • Price paid and valuation – What was the total amount of money paid for the deal? Did the company over-pay or are they getting a good deal? It’s important to drill down into the valuation paid and not just look at the headline number. For example, if the acquisition costs $100 million and the acquired company generates $10 million in net profit each year, this means the acquisition was made at 10x earnings, which is considered cheap. The rule of thumb is anything above 15x earnings would be considered “expensive”, though of course, this varies according to the industry.
  • Supposed benefits – Look at what management communicates to shareholders regarding the benefits of the M&A. Does it result in better earnings visibility, wider customer base or product portfolio or some other tangible benefit? Be careful of general terms such as “synergies” which do not provide specific details on how the M&A will benefit the acquirer.
  • Funding for the acquisition – How is the acquisition funded? Using the company’s internal resources and based off free cash flow generation, or via a higher level of borrowings? This is important as it demonstrates if management may be biting off more than they can chew. The infamous leveraged buy-outs in the late 1990s, where companies borrowed aggressively to fund expensive acquisitions, turned out to be a grave mistake as many of these M&A subsequently fared poorly.
Assessing And Monitoring M&A
As investors, I believe we should continue to monitor and assess if the M&A performed well over time, to decide on whether the company had made a good or poor acquisition. Study the disclosures made of the new division or acquisition (assuming the company discloses such numbers) to determine if it is performing well or poorly. The time horizon should be anything from one year to three years, so this can be a long-drawn process.

The Foolish Bottom Line
M&A can be complex, and it’s not easy for the investor to assess if an M&A is good or bad unless he monitors it. A company may also have a track record of successful M&A which an investor can rely on for psychological comfort. The bottom line is that M&As are not always beneficial, and the investor should be aware of this.

Offline zuolun

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Re: Casino Stocks
« Reply #1614 on: September 03, 2019, 05:06:47 PM »
Are mergers and acquisitions always good for investors?

By Royston Yang
31 January 2019

There's nothing which graces the headlines and makes business news more exciting than mergers and acquisition (M&A) announcements.

With the desire to grow larger and get better, more and more companies are on an acquisition spree to turbo-charge their growth and to create more "shareholder value". Investors who are on the receiving end of such announcements from the companies within their portfolio should carefully scrutinise the deals as M&A do not always turn out well. The devil, as they say, is in the details and this article attempts to explain the good and the bad when it comes to M&A.

BreadTalk buying over Food Junction for $80 mil from Auric Pacific ~ 2 Sep 2019
https://www.theedgesingapore.com/capital/ma/breadtalk-buying-over-food-junction-80-mil-auric-pacific

BreadTalk posts 35.3% drop in 1H earnings to $2.3 mil on increased expenses ~ 2 Aug 2019
https://www.theedgesingapore.com/capital/results/breadtalk-posts-353-drop-1h-earnings-23-mil-increased-expenses

BreadTalk ~ Trading in a downward sloping channel, TP S$0.50

BreadTalk closed with a hammer @ S$0.665 (-0.015, -2.2%) with 680,000 shares done on 2 Sep 2019.

Immediate support @ S$0.63, immediate resistance @ S$0.695.


Offline zuolun

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Re: Casino Stocks
« Reply #1615 on: September 08, 2019, 01:33:32 PM »
苏小妹:

Stock prices of Eco World and SP Setia are likely to move down much lower due to their exposure in the U.K.


Eco World ~ Trading in a downward sloping channel, TP RM0.53

Eco World closed with a spinning top @ RM0.66 (+0.005, +0.8%) with 5.06m shares done on 6 Sep 2019.

Immediate support @ RM0.625, immediate resistance @ RM0.685.



Performance Chart ~ Malaysia Property stocks ~ 6 Sep 2019



Pound US dollar exchange rate: GBP/USD sinks as parliament suspension deemed legal ~ 6 Sep 2019
https://www.express.co.uk/finance/city/1174804/pound-us-dollar-exchange-rate-sinks-parliament-suspension-legal-boris-johnson-tfx
THE pound US dollar exchange rate fell by around $1.229 today as the British high court ruled that Prime Minister Boris Johnson’s five week suspension of parliament was entirely legal.

No-deal Brexit could be the ‘end of the beginning’ for the UK, research says ~ 4 Sep 2019
Leaving the European Union without a deal will not represent a clean break for the U.K., but rather usher in a period of prolonged and severe uncertainty for years to come, according to a new report.

Cover Story: Staying agile in an uncertain market ~ 2 Sep 2019
https://www.theedgemarkets.com/article/cover-story-staying-agile-uncertain-market
  • In 2015, EcoWorld International — a 27% associate company of Eco World Development Group Bhd (EcoWorld Malaysia) — launched three residential projects valued at £2.2 billion in London’s Zones 1 and 2 as part of its 75% partnership with UK-based Ballymore Group to form EcoWorld Ballymore.
  • The following years, it launched another five residential projects valued at £1.2 billion in Zones 2, 3 and 4 under EcoWorld London, a joint venture with 160-year-old UK construction firm Willmott Dixon Holdings Ltd, with EcoWorld International holding a 70% stake.
  • To date, two of EcoWorld Ballymore’s ongoing projects — London City Island and Wardian in East London — are 84% sold. The other project, Embassy Gardens in Nine Elms, is 68% taken up. They command premium prices of £800 to £1,500 psf.
Pound to Euro exchange rates: Sterling unstable against the Euro owing to Brexit uncertainty ~ 30 Aug 2019
https://www.poundsterlingforecast.com/2019/08/pound-to-euro-exchange-rates-sterling-unstable-against-the-euro-owing-to-brexit-uncertainty/

Whatever they say about Brexit, sterling’s nosedive tells us the truth ~ 4 Aug 2019
https://www.theguardian.com/commentisfree/2019/aug/04/brexit-sterling-nosedive-falling-pound-britain
  • If you are reading this and earn your living in UK currency, you are already poorer today than you were before June 2016. And you will be poorer by the end of the year if a no-deal EU exit comes to pass. If you have savings in sterling, then you’re in even more trouble.
  • Back in the real world, the pound is already being treated like a volatile emerging markets currency. Last week Edinburgh festival artists refused to be paid in sterling, demanding euros and dollars. The “debauching” of the pound is fully under way.
SP Setia ~ Trading in a downward sloping channel, TP RM1.17

SP Setia closed with a white marubozu @ RM1.56 (+0.09, +6.1%) with 2.26m shares done on 30 Aug 2019.

Immediate support @ RM1.47, immediate resistance @ RM1.60.


Offline zuolun

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Re: Casino Stocks
« Reply #1616 on: September 15, 2019, 12:27:47 PM »
苏小妹:

箭在弦上,一触即发。




PBBank (1295) ~ Bearish Head-and-Shoulders Breakout, TP RM17.44

PBBank closed with a spinning top unchanged @ RM20.14 with 2.05m shares done on 13 Sep 2019.

Critical support @ RM20.00, immediate resistance @ S$20.47.



PBBank (1295) ~ Bearish Head-and-Shoulders, interim TP RM20.62

PBBank closed with a spinning top @ RM21.78 (-0.04, -0.2%) with 3.46m shares done on 2 Aug 2019.

Immediate support @ RM21.50, immediate resistance @ S$22.06.


Offline zuolun

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Re: Casino Stocks
« Reply #1617 on: September 16, 2019, 02:14:16 PM »
Zuolun bro, raffles medical looks like inverted h & s
1.05 to 1.15 to 1.25
Not sure if can jeep or not

苏小妹:

知道了大方向的趋势就能预测小方向的价格走势。

1. Raffles Medical's TP @ S$0.83 is based on the Bearish Descending Triangle breakout as per 22 Sep 2017's chart.(大方向的趋势)
2. So, you do not need a bearish breakout confirmation for Raffles Medical's Bearish Rounding Top.(小方向的价格走势)


Raffles Medical Group Ltd’s share price plunged 20% in 2019. Here’s why. ~ 12 Sep 2019
https://sg.finance.yahoo.com/news/raffles-medical-group-ltd-share-003334486.html
In the first half of 2019, Raffles Medical reported that revenue was up by 6.2% year-on-year to S$255.3 million. Yet, profit for the period fell by 13.5% to S$27.9 million. The decline in profit was driven mainly by gestation losses by Raffles Hospital Chongqing.

Raffles Medical ~ Bearish Rounding Top, interim TP S$0.89, next TP S$0.83

Raffles Medical closed with a dragonfly doji @ S$0.96 (+0.005, +0.5%) with 1.66m shares done on 13 Sep 2019.

Immediate support @ S$0.94, immediate resistance @ S$0.97.



RMG ~ Trading in a downward sloping channel, TP S$0.83

RMG closed with a spinning top @ S$1.105 (-0.005, -0.5%) with 2.06m shares done on 22 Sep 2017.


Offline zuolun

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Re: Casino Stocks
« Reply #1618 on: September 16, 2019, 03:53:29 PM »
苏小妹:

行到水穷处,坐看云起时。


Interesting chart patterns on CAO's chart
1) Trading in an intermediate upward sloping channel
2) Symmetrical Triangle Fomation
3) Double Bottom Formation

CAO closed with a hammer @ S$1.22 (+0.02, +0.1%) with 350,000 shares done on 13 Sep 2019.

Immediate support @ S$1.18, immediate resistance @ S$1.23.



Performance chart ~ KepCorp, SembCorp Ind, SembCorp Marine and CAO as at 13 Sep 2019



West Texas Intermediate spikes an impressive 15% onto the $63 handle ~ 15 Sep 2019
https://www.fxstreet.com/news/west-texas-intermediate-spikes-an-impressive-15-onto-the-63-handle-201909152217

Saudi oil production cut by 50% after drones attack crude facilities ~ 15 Sep 2019
https://www.cnbc.com/2019/09/14/saudi-arabia-is-shutting-down-half-of-its-oil-production-after-drone-attack-wsj-says.html

Brent Crude Oil @ US$65.42 on 16 Sep 2019 at 1547 hrs.



WTI Crude Oil @ US$59.18 on 16 Sep 2019 at 1545 hrs.


Offline zuolun

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Re: Casino Stocks
« Reply #1619 on: September 16, 2019, 06:20:43 PM »
I'm negative on OUE C-Reit's rights issue. (10个锅9个盖)

Are mergers and acquisitions always good for investors?

By Royston Yang
31 January 2019

There's nothing which graces the headlines and makes business news more exciting than mergers and acquisition (M&A) announcements.

With the desire to grow larger and get better, more and more companies are on an acquisition spree to turbo-charge their growth and to create more "shareholder value". Investors who are on the receiving end of such announcements from the companies within their portfolio should carefully scrutinise the deals as M&A do not always turn out well. The devil, as they say, is in the details and this article attempts to explain the good and the bad when it comes to M&A.

苏小妹:

Performance chart as at 13 Sep 2019 showed that Lippo Group's SGX-listed companies will likely resume the downtrend. If an investor who purchased and held any of these Lippo Group's stocks for longterm investment since 29 Dec 2017, it means he/she is a dead duck now because the stock prices of these companies did not hit above zero%. So, from an investor's perspective, whatever additional money contributed to OUE C-Reit's rights issue means "throwing good money after bad".


OUE C-Reit, H-Trust merger goes into effect, creating enlarged S$6.9b Reit ~ 4 Sep 2019
https://www.straitstimes.com/business/companies-markets/oue-c-reit-h-trust-merger-goes-into-effect-creating-enlarged-69b-reit

OUE C-REIT sees 1H income for distribution jump 43% to $48.6 mil even as DPU drops 23% to 1.68 cents on enlarged base ~ 7 Aug 2019
https://www.theedgesingapore.com/capital/results/oue-c-reit-sees-1h-income-distribution-jump-43-486-mil-even-dpu-drops-23-168-cents
The manager of OUE Commercial Real Estate Investment Trust (OUE C-REIT) has announced distribution per unit (DPU) of 1.68 cents for the 1H19 ended June, some 22.9% lower than DPU of 2.18 cents a year ago.

Performance chart of Lippo Group's SGX-listed companies in Singapore as at 13 Sep 2019



Gambling with other people’s money

Imagine a superb poker player who asks you for a loan to finance his nightly poker playing. For every $100 he gambles, he’s willing to put up $3 of his own money. He wants you to lend him the rest. You will not get a stake in his winning. Instead, he’ll give you a fixed rate of interest on your $97 loan.

The poker player likes this situation for two reasons. First, it minimizes his downside risk. He can only lose $3. Second, borrowing has a great effect on his investment — it gets leveraged. If his $100 bet ends up yielding $103, he has made a lot more than 3 percent — in fact, he has doubled his money. His $3 investment is now worth $6.

But why would you, the lender, play this game? It’s a pretty risky game for you. Suppose your friend starts out with a stake of $10,000 for the night, putting up $300 himself and borrowing $9,700 from you. If he loses anything more than 3 percent on the night, he can’t make good on your loan.

Not to worry — your friend is an extremely skilled and prudent poker player who knows when to hold ,em and when to fold ,em. He may lose a hand or two because poker is a game of chance, but by the end of the night, he’s always ahead. He always makes good on his debts to you. He has never had a losing evening. As a creditor of the poker player, this is all you care about. As long as he can make good on his debt, you’re fine. You care only about one thing — that he stays solvent so that he can repay his loan and you get your money back.

But the gambler cares about two things. Sure, he too wants to stay solvent. Insolvency wipes out his investment, which is always unpleasant — it’s bad for his reputation and hurts his chances of being able to use leverage in the future. But the gambler doesn’t just care about avoiding the downside. He also cares about the upside. As the lender, you don’t share in the upside; no matter how much money the gambler makes on his bets, you just get your promised amount of interest.

If there is a chance to win a lot of money, the gambler is willing to take a big risk. After all, his downside is small. He only has $3 at stake. To gain a really large pot of money, the gambler will take a chance on an inside straight.

As the lender of the bulk of his funds, you wouldn't want the gambler to take that chance. You know that when the leverage ratio — the ratio of borrowed funds to personal assets — is 32–1 ($9700 divided by $300), the gambler will take a lot more risk than you’d like. So you keep an eye on the gambler to make sure that he continues to be successful in his play.

But suppose the gambler becomes increasingly reckless. He begins to draw to an inside straight from time to time and pursue other high-risk strategies that require making very large bets that threaten his ability to make good on his promises to you. After all, it’s worth it to him. He’s not playing with very much of his own money. He is playing mostly with your money. How will you respond?

You might stop lending altogether, concerned that you will lose both your interest and your principal. Or you might look for ways to protect yourself. You might demand a higher rate of interest. You might ask the player to put up his own assets as collateral in case he is wiped out. You might impose a covenant that legally restricts the gambler’s behavior, barring him from drawing to an inside straight, for example.

Offline zuolun

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Re: Casino Stocks
« Reply #1620 on: September 17, 2019, 10:09:12 AM »
苏小妹:

I never like S-REITs.

还好在ESR-Reit与Viva Ind Tr合并之前,你已经卖掉Viva Ind Tr 的股票了!


Highly-Leveraged S-REITs:
  • S-REITs have a gearing ratio of 45%, as mandated by the Monetary Authority of Singapore.
  • The gearing ratio is calculated by taking a REIT’s total borrowings and dividing it by its total assets.
  • If the 45% cap is hit, the REIT will have to raise funds through a rights issue or private placement to pare down debt and bring its gearing ratio down to a more palatable level.

苏小妹:

Conclusion: ESR-REIT 大费周章的搞 M&A 并不是为了股东的利益。REIT managers prefer to be large as their management fees are based on a percentage of assets under management (AUM).


What is a management fee?
https://www.investopedia.com/terms/m/managementfee.asp
The fee compensates professional money managers to select securities for a fund's portfolio and manage it based on the fund's investment objective. Management fee structures vary from fund to fund, but they are typically based on a percentage of assets under management (AUM).

Read this before buying ESR-REIT for its dividend ~ 16 Sep 2019
https://simplywall.st/stocks/sg/real-estate/sgx-j91u/esr-reit-shares/news/read-this-before-buying-esr-reit-sgxj91u-for-its-dividend/

Which industrial REIT offers the best investment prospects? ~ 29 Aug 2019
https://sg.finance.yahoo.com/news/industrial-reit-offers-best-investment-104125816.html
From the table of 5 industrial REITs, the year-on-year DPU growth of ESR-REIT is 0.3%.


Offline zuolun

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Re: Casino Stocks
« Reply #1621 on: September 18, 2019, 10:49:15 AM »
苏小妹:

ESR-REIT 频频向股东伸手要钱并不是用来扩充业务,而是用来偿还债务。


Accretive vs. dilutive mergers: What's the difference?
https://www.investopedia.com/ask/answers/043015/what-difference-between-accretive-and-dilutive-merger.asp
A M&A deal is said to be accretive if the acquiring firm's EPS increase after the deal goes through. If the resulting deal causes the acquiring firm's EPS to decline, the deal is considered to be dilutive.

1 high-yield REIT to be wary of ~ 17 Sep 2019
https://sg.finance.yahoo.com/news/1-high-yield-reit-wary-031124927.html
Not all high-yield REITs make good investments. It is more important to invest in a REIT that will likely sustain or even grow its dividend over time. With that said, one high-yield REIT I am wary of is ESR-REIT. Here’s why.
  • DPU is being artificially propped up.
  • Recent equity fundraising will likely be dilutive.
  • High gearing.
Preferential units offers on the basis of 29 new units for every 1,000 existing units to raised gross proceeds of S$50m ~ 13 Sep 2019
https://links.sgx.com/FileOpen/130919_ESR-REIT%20-%20Launch%20of%20Pref%20Offer%20Announcement.ashx?App=Announcement&FileID=578317

ESR-Reit raises S$100m from upsized private placement of 194.2m new units at lower end of price range ~ 18 Jun 2019
https://www.marketwatch.com/press-release/singapore-esr-reit-raises-s100m-from-upsized-private-placement-at-lower-end-of-price-range-2019-06-18
  • The issue price was fixed at S$0.515 per new unit - at the lower end of the S$0.515 - S$0.525 proposed range earlier announced on Monday 17 Jun 2019.
  • The issue price of S$0.515 represents a discount of 8.3% to the volume weighted average price of S$0.5616 per unit for all trades done on 14 Jun 2019.
  • Approximately $26.2m, or 26.2% will be used to partially finance the proposed AEIs, $26.m, or 26.3% will be used to partially finance the debt repayment.
  • The remaining $3.1m will be used to pay for the transaction related expenses, including the estimated underwriting and selling commission and expenses related to the equity fund raising.

Offline zuolun

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Re: Casino Stocks
« Reply #1622 on: Yesterday at 10:28:16 AM »
苏小妹:

Chip Eng Seng's rights issue proposal = 大鱼吃小鱼  [供股(rights issue)纯粹为了让大股东吞吃小股东的利益]


Elephant in the room: “Change of control” situations ~ 5 Sep 2019
https://governanceforstakeholders.com/2019/09/05/elephant-in-the-room-change-of-control-situations/
“if the EGM resolutions are passed, the controlling shareholders stand to receive about $1 million to carry out this rights issue that will likely allow them to increase their shareholdings beyond 30% without triggering the mandatory general offer. This seems like a case of having your cake and eating it too.”



Securities watchdog looking into billionaire couple' s purchase of Chip Eng Seng shares

18 Sep 2019

THE Securities Industries Council (SIC), which administers Singapore's takeover code, is looking into the circumstances that saw billionaire couple Celine and Gordon Tang emerge as substantial shareholders of Chip Eng Seng in October last year.

"The SIC is looking into the acquisition of shares in the company in October 2018 by the relevant parties," the council said on Tuesday in response to queries from The Business Times.

"As our enquiry is on-going, we are not able to comment further at this point."

The Tangs forked out S$201 million to become Chip Eng Seng's largest shareholders last October, through married deals with members of Chip Eng Seng's controlling Lim family that were done at a premium to the market price.

However, the Tangs chose not to buy out the Lim family's entire stake. Instead, they bought enough to take their stake to 29.73 per cent.

By keeping their ownership below 30 per cent, the Tangs avoided having to buy out Chip Eng Seng's minority shareholders at the same price that the insiders were bought out.

So when Chip Eng Seng proposed a rights issue last month that will be sub-underwritten by the Tangs, corporate governance advocates raised concerns that the relatively unattractive rights offering could lead to the Tangs raising their stake to as high as 43.43 per cent of the enlarged issued capital, allowing them to strengthen their control over the property and construction group without paying minority shareholders a dime.

The SIC declined to comment on why it is revisiting last year's married deals now.

In July, it greenlighted the Tangs' request to waive their obligation to buy out everyone if their ownership crosses 30 per cent as part of the rights issue.

The council's statement on Tuesday came after BT asked it to explain its rationale for the waiver.

Rule 14(6) of the takeover code requires the Tangs to make a takeover offer for Chip Eng Seng if the council judges that the couple have "a significant degree of control" over the voting rights of those insiders who sold them only part of their shares.

Corporate governance activists Mak Yuen Teen and Chew Yi Hong had argued in the pages of BT last week that the Tangs do indeed have effective control over the company, which they believe puts the rationale for the rights issue into question.

Even if the Tangs keep their ownership below 30 per cent, the code states that "the payment of a very high price for the voting rights would tend to suggest that control over the entire holding (of the sellers) was being secured", among other things.

The Tangs paid the Lims a premium of 26.5 cents (or about 33 per cent) to the average undisturbed price of 81.5 cents for their shares last year, wrote Prof Mak and Mr Chew, which works out to a control premium of about S$49 million.

Prof Mak said on Tuesday: "I think the issues of concert parties, partial sales, payment of a high price, independence of directors and corporate actions like the rights issue we saw in Chip Eng Seng need to be scrutinised. It's good if the SIC is looking at it."

When BT approached Chip Eng Seng's board of directors for comment on Tuesday, independent director Abdul Jabbar said: "As the acquisition of shares is a shareholder issue which does not involve the company and there is an enquiry by the SIC on going, it would not be appropriate for the board of CES (Chip Eng Seng) to comment on this.

"From CES' perspective, our corporate strategic growth plans and need for funding remain in place, and, barring any unforeseen developments, we intend to proceed with the rights issue as planned."

The SIC follows due process in its enquiries. It cannot halt a company's corporate actions without the backing of its findings.

Celine Tang, who is a non-executive and non-independent chairman of Chip Eng Seng, did not comment.

Gordon and Celine Tang reside in Singapore, and are reportedly close to the Bush family and Thailand's former prime minister Yingluck Shinawatra.

Mrs Tang is managing director of Singapore-listed SingHaiyi. Neil Bush, the brother of Jeb and former US president George W. Bush, chairs SingHaiyi.

The Tangs also own stakes in Singapore-listed Suntec Reit, ARA US Hospitality Trust, Eagle Hospitality Trust, Cromwell European Reit, OUE Commercial Reit and OKH Global.

Chip Eng Seng proposes rights issue to raise S$96m for expansion

22 Aug 2019

MAINBOARD-LISTED developer  Chip Eng Seng on Thursday said that it plans to  do a renounceable underwritten rights issue of about 156.5 million new  shares at  S$0.63 each, to raise  net proceeds of about  S$96.3 million for its expansion plans.

This will be done on the basis of one rights share for  every four existing shares in the company held by shareholders.

Proceeds will be used  to finance the possible expansion of its property development business in Singapore and overseas, as well as to fund  possible strategic investments and acquisitions in the  education segment of its business, which is in line with the group' s recent diversification into the education sector.

Some money will also be used for  the growth and operations of the group' s hospitality segment, as well as for  general and working capital.

In support of the rights issue, controlling shareholder Celine Tang (also the company' s chairman), her husband Gordon Tang, as well as group CEO Chia Lee Meng Raymond,  have given irrevocable undertakings to subscribe for their portion of shares, which constitute about 31.51 per  cent of the total number of rights shares.

Mr and Mrs Tang have been granted approval by the  Securities Industry Council of Singapore not to have to  make a  mandatory general offer, should  their shareholding in the company rise above 30 per cent.

Ms Tang has a direct and deemed interest of  29.73 per cent in the company.

The price carries a 7.35 per cent discount to the closing price of S$0.68 per share on  Aug 22, and a  5.97 per cent discount to the theoretical ex-rights price of S$0.67, assuming the completion of the rights issue, calculated based on the Aug 22 closing price.

Chip Eng Seng said it has considered other fundraising options, including further bank borrowings  and debt instruments from financial institutions or debt issuances under its S$750  million Multicurrency Debt Issuance Programme, but found a rights issue to be the most " suitable" .

This is because its  net debt-to-equity ratio is already about 1.8 times as at end-June 2019, and  based on the three-year fixed rate notes issued in March 2019 under the programme, the cost of borrowing was 6 per  cent per annum.

"The cost of borrowing depends on market conditions and may be higher for borrowings of a longer tenor," it said.

It has also calculated based on its last paid dividends and Aug 22 closing price, that the cost of equity would be cheaper at about 5.88 per cent per  annum.

Therefore, a rights issue would strengthen the group' s financial position by improving its  balance sheet and capital base, while reducing its net gearing, the firm added.

At the same time, it will give the group greater financial capacity  and flexibility to capitalise on investment and expansion opportunities and allow it to respond  to such opportunities quickly, it said.

Chip Eng Seng will be seeking approval from shareholders in  an extraordinary general meeting to be convened to vote on the issuance, among other things.

United Overseas Bank has been appointed the manager and underwriter for the rights issue.

Offline zuolun

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Re: Casino Stocks
« Reply #1623 on: Yesterday at 11:57:01 AM »
The Basics Of Game Theory
https://www.investopedia.com/articles/financial-theory/08/game-theory-basics.asp

所有上市公司掌舵人在股票市场玩数字游戏最先考虑的重点是,他們自己本身的利益:

BreadTalk says no EGM to be called for $80 mil Food Junction acquisition ~ 17 Sep 2019
https://www.theedgesingapore.com/capital/ma/breadtalk-says-no-egm-be-called-80-mil-food-junction-acquisition

Why it makes zero sense for BreadTalk to buy Food Junction at $80 million ~ 10 Sep 2019
https://www.drwealth.com/why-it-makes-zero-sense-for-breadtalk-to-buy-food-junction-at-80-million/
  • BreadTalk has proposed to buy the Food Junction Management for S$80 million, which is a subsidiary of Food Junction Holdings (FJH).
  • FJH itself is held by Auric Pacific group ltd (APGL) with a 98.1% controlling stake. In turn, the vendor APGL is ultimately controlled by Lippo Limited. Lippo Limited (HKEX: 226) is listed in the Hong Kong exchange and is the holding company of Lippo China Resources Limited (stock code: 156) and Hongkong Chinese Limited (stock code: 655).
  • According to the SGX filing, the total consideration of S$80 million will be paid in cash and will be funded through BreadTalk Group’s internal resources – including available cash on hand – and debt facilities.
  • Auric Pacific privatised Food Junction in June 2013 valued at around S$30.77 million and is now selling it to BreadTalk at S$80 million after 6 years – representing a 260% increase in price while they let go of a business unit that has been churning out crappy profits.

Offline zuolun

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Re: Casino Stocks
« Reply #1624 on: Today at 02:44:02 PM »
苏小妹:

云顶发售100亿票据的新闻一出,云顶的股价就应声跌破了RM5.80的支撑线。

GENTING broke the critical support @ RM5.80 on 18 Sep 2019, one day after the RM10b bonds news was released on 17 Sep 2019.
(It might have acted as a catalyst to trigger the share price down.)


Genting issues RM10b bonds for investments and operating expenditure ~ 17 Sep 2019
https://www.nst.com.my/business/2019/09/522142/genting-issues-rm10b-bonds-investments-and-operating-expenditure

GENTING (3182) ~ Trading in a downward sloping channel, interim TP RM5.15

GENTING closed with a hammer @ RM5.77 (-0.03, -0.5%) with 6.76m shares done on 19 Sep 2019.

Immediate support @ RM5.60, immediate resistance @ RM5.90.



GENTING (3182)

GENTING closed @ RM6.87 (+0.22, +3.3%) with high volume done at 12.0m shares on 24 Jul 2019.


Offline zuolun

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Re: Casino Stocks
« Reply #1625 on: Today at 03:37:35 PM »
没想到,如今在马来西亚;真的有人肯花大钱去买一间“面临破产”的美国上市公司。
https://www.businesswire.com/news/home/20190725005625/en/

谜底终于揭晓了:Genting as a public-listed company can raise money in the Capital Markets as and when it requires.

What are Capital Markets?
https://investinganswers.com/dictionary/c/capital-markets
The capital markets are a source of financing for companies around the world. The most famous of the capital markets are the stock market and bond market. Companies utilize capital markets to raise money for projects by issuing stock IPOs, bonds and short-term money market securities. Individual investors wish to earn interest or dividends on their savings can meet companies looking to raise funds by issuing securities.

Genting issues RM10b bonds for investments and operating expenditure ~ 17 Sep 2019
https://www.nst.com.my/business/2019/09/522142/genting-issues-rm10b-bonds-investments-and-operating-expenditure

Gambling with other people’s money

Imagine a superb poker player who asks you for a loan to finance his nightly poker playing. For every $100 he gambles, he’s willing to put up $3 of his own money. He wants you to lend him the rest. You will not get a stake in his winning. Instead, he’ll give you a fixed rate of interest on your $97 loan.

The poker player likes this situation for two reasons. First, it minimizes his downside risk. He can only lose $3. Second, borrowing has a great effect on his investment — it gets leveraged. If his $100 bet ends up yielding $103, he has made a lot more than 3 percent — in fact, he has doubled his money. His $3 investment is now worth $6.

But why would you, the lender, play this game? It’s a pretty risky game for you. Suppose your friend starts out with a stake of $10,000 for the night, putting up $300 himself and borrowing $9,700 from you. If he loses anything more than 3 percent on the night, he can’t make good on your loan.

Not to worry — your friend is an extremely skilled and prudent poker player who knows when to hold ,em and when to fold ,em. He may lose a hand or two because poker is a game of chance, but by the end of the night, he’s always ahead. He always makes good on his debts to you. He has never had a losing evening. As a creditor of the poker player, this is all you care about. As long as he can make good on his debt, you’re fine. You care only about one thing — that he stays solvent so that he can repay his loan and you get your money back.

But the gambler cares about two things. Sure, he too wants to stay solvent. Insolvency wipes out his investment, which is always unpleasant — it’s bad for his reputation and hurts his chances of being able to use leverage in the future. But the gambler doesn’t just care about avoiding the downside. He also cares about the upside. As the lender, you don’t share in the upside; no matter how much money the gambler makes on his bets, you just get your promised amount of interest.

If there is a chance to win a lot of money, the gambler is willing to take a big risk. After all, his downside is small. He only has $3 at stake. To gain a really large pot of money, the gambler will take a chance on an inside straight.

As the lender of the bulk of his funds, you wouldn't want the gambler to take that chance. You know that when the leverage ratio — the ratio of borrowed funds to personal assets — is 32–1 ($9700 divided by $300), the gambler will take a lot more risk than you’d like. So you keep an eye on the gambler to make sure that he continues to be successful in his play.

But suppose the gambler becomes increasingly reckless. He begins to draw to an inside straight from time to time and pursue other high-risk strategies that require making very large bets that threaten his ability to make good on his promises to you. After all, it’s worth it to him. He’s not playing with very much of his own money. He is playing mostly with your money. How will you respond?

You might stop lending altogether, concerned that you will lose both your interest and your principal. Or you might look for ways to protect yourself. You might demand a higher rate of interest. You might ask the player to put up his own assets as collateral in case he is wiped out. You might impose a covenant that legally restricts the gambler’s behavior, barring him from drawing to an inside straight, for example.