Hyflux

[RBM]

Thanks Musicwhiz - good thoughtfull pushback, which is appreciated ........... particularly the points on it being early days and the (unusual) cumulative nature of this particular PS.

My approach to Hyflux PS has been to consider selling after the first (half-yearly) 3% dividend payment at end October and thats why I am not displeased regarding the Fed Chief's ongoing morose utterings, i.e. which have the effect of prolonging low interest rates. I also believe its a fair assumption to assume that Hyflux will have >S$ 12 Mln of its S$ 400 Mln gained from the PS listing remaining at end October! If the PS price remains > 106, then I'll be looking at a return of > 9% in 6 months or ~ 19% p.a. I've more often done worse than this in the past. My "Botanic Garden" chums may hang on to their PS units somewhat longer.

Regarding the last line of your message ........... "I do not think CPS is a good way to raise cash, and it somehow signals the Company may not be as fundamentally sound as it should be!" ..... I've continually asked myself why Singapore's banks pursue the PS route - DBS, UOB and OCBC all have weighty PS's listed on the SGX ........ and bluer than blue DBS issued its latest offerring in Q4 2010 at a 4.7% coupon. While I realise DBS have taken out a variety of debt instruments and like other Bank PS's they are non-cumulative in nature, I can't believe they are issuing a 4.7% coupon PS if it isn't cost effective for them. I'm obviously missing something here.

Vested in both Hyflux PS & DBS PS.

Off now for my late morning walk. Thanks again Musicwhiz.