Thursday, May 24, 2018

Omg, Hyflux? I am SHOCKED by this SURPRISING and UNEXPECTED news

So Hyflux has applied to the High Court to stop creditors from seizing their assets, in other words, bankruptcy protection.

Who would've known, right? How terribly surprising and shocking news that just appeared out of nowhere. I am sure no one saw this coming, at all, from years away. /s


I've been perpetually shitting on Hyflux since 2016 until recently.

Why are people so in love with Hyflux? Because of the high yield they pay out? From your own capital that you supplied to them? Kek.


Hyflux share price when I talked about it in 2016: $0.528
Hyflux share price when last traded: $0.210
Dividends since then: $0.0045
Total Return: -59.4%

Hyflux preference share price when I talked about it in 2016: $99.80
Hyflux preference share price when last traded: $65.37
Payouts since then: $12
Total Return: -22.5%

Hyflux perpetual bond price when I talked about it in 2016: $1.00
Hyflux perpetual bond price when last traded: $0.500
Payouts since then: $0.09
Total Return: -41.0%


It looks like out of all the securities listed on the SGX, I just so happen to go out of my way and spend my time and effort to publicly shit all over 2 companies (Noble and Hyflux), way in advance before they go bust.

But, that's just a lucky coincidence, I guess?

At 60% debt to assets, a very ugly and underperforming stock, 5 year stagnant revenues and declining profit, it doesn't seem to me like it would be a good bet that Hyflux is going to have the ability to pay me back my own money which I lent them without going bust. It's not like they are using their debt / assets well to generate more profits.

Now they are borrowing money to pay back borrowings. Not even going to think much about it.

If you are vested, its a good thing if they can raise money to pay back their debt, since it gets more expensive if it doesn't get repaid. If you're not vested, I would implore you to find some good reasons to get yourself involved in this mess. I can't find any, other than a 6% yield, which is meaningless if you only get paid for a few years and lose the principal.

To me, it's a no no. I'm staying away and I'm just going to watch this show. -GMGH, May 2016

Honestly, the signs for Hyflux was written all over the walls, same as with Noble.

I'm not saying a genius. I'm saying, it was pretty damn obvious to me what was going to happen.


Good luck and stay safe. If you don't protect your own money, no one else will.

4 comments:

  1. Haha everyone is now expecting all their perps & prefs to be converted to shares at a ridiculous diluted rate.

    And their bonds to be renegotiated ... Probably a big haircut too.

    2 choices: either take haircut or see how much u can get from bankruptcy. If bankruptcy all those unsecured will be wiped out. Even those senior secured debt will only get pennies on the dollar (maybe 10-15%).

    Without a fundamental business change, this restructuring is only postponing the inevitable. The next major recession by 2020/21 will drive in the coffin nails. Haha!

    ReplyDelete
    Replies
    1. This is going to be a good case study on the salvage value of such securities when the SHTF.

      It's a basket case already, question is just how long and how much can the basket be sold for and redistributed to stakeholders, haha.

      Delete
  2. Seizing the assets are not the good, it looks that he got bankrupt.singapore

    ReplyDelete
  3. yeah, u can start your.new.fund, shitty companies, and short them until.they are zero.

    ReplyDelete

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