Sunday, February 4, 2018

Hyflux Hangover

Whoa, wtf? A non-crypto post from GMGH?

Ahaha, yes. Hyflux and their perpetual bonds and preference shares have always piqued my interest. It just so happened that I came across this ST article on the Hyflux preference shares which I remember talking about in 2016 a while after they issued their perpetual bonds.

Back in Oct 2016, I talked about Hyflux and their recently launched 6% perpetual bonds. Brief summary: Hyflux perp bonds tanked from 100 par to 96 pretty much immediately. The better buy would be to get their preference shares which were trading at 94.6.

Fast forward to today, the perp bonds are sitting at 75. A fantastic 25% over less than 2 years. Congratulations Hyflux perp bond holders! Oh wait, it's a 25% loss. Oops. To be fair, they did get 3 payouts already, so the loss is less. Maybe 16% net loss only? Yes, "only".

The preference shares? Shitty at 91.8, no doubt, but someone would've eaten 2 payouts since then and actually make 3% if they sold out now. Not too shabby considering the perp bond performance, and the stock price. Oh the stock price.

The share price has slowly "Noble-d" from $0.56 to $0.47 to $0.37 now. -34%, wow.

Stock investors usually get the better end of the stick? You tell me.

Anyway, I'm not surprised at all. To quote myself in that previous post:

But of all the unknowns out there, one thing is for sure - I'm happy I ain't an equity investor of Hyflux. If you still are, I congratulate you for having the stones to sit through a 67% stock price decline over the past 5 years. 

I'm just taking pot shots at crappy traditional investments right now. I've pretty much no more traditional investments anymore and I won't be looking back for a while. If I sell my crypto now, what would I put my money back into? Stocks? LOL over my dead body. Crypto is in a bubble? I find stocks the more bleedingly obvious bubble, in my opinion. Crypto has crashed? Sorry, but my portfolio is at an all time highs, so I have no idea what you are talking about. Good luck out there guys. You want to talk about risks? Even the traditional investment world has tons of risks.

To all the traditional investors out there, please tell me again about how "safe" traditional bond investments like Hyflux perps are.

If you repeat it often enough, you might actually believe it.


  1. Sold the bonds at a loss. Plough the proceeds into ethereum at 350. Best trade of my life.


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