29-04-2012, 11:41 PM
Their financial expenses will increase significantly as a result of the perps. It remains to be seen if they can maintain their consistent dividend track record.
(29-04-2012, 11:41 PM)Musicwhiz Wrote: [ -> ]Their financial expenses will increase significantly as a result of the perps. It remains to be seen if they can maintain their consistent dividend track record.
(29-04-2012, 10:33 PM)KopiKat Wrote: [ -> ](29-04-2012, 10:10 PM)CityFarmer Wrote: [ -> ]I witness the magic of Perpetual securities on net asset of a company, the SingPost. The SingPost net asset magically goes from ~332 Mils to ~660 Mils, PB ratio goes from 6.71 to 3.15 without any "real" increase in asset, but a perpetual loan of ~347 Mils.
What a power perpetual security!
I wonder what they're planning to do with the war-chest (Cash = $617M). Their previous acquisitions had been small and they may be preparing to do some bigger acquisition?? I worry they are going to do something silly..
If they don't deploy it soon to make some earnings accretive acquisitions, their EPS are going to suffer the moment they have to start paying the coupon for their PERPS..
(30-04-2012, 08:17 AM)CityFarmer Wrote: [ -> ]I assume large part of the cash will be used to pay off the S$300 million 10-year bond issued in April 2003.
(30-04-2012, 08:31 AM)KopiKat Wrote: [ -> ](30-04-2012, 08:17 AM)CityFarmer Wrote: [ -> ]I assume large part of the cash will be used to pay off the S$300 million 10-year bond issued in April 2003.
Use 4.25% PERPS to redeem 3.13% Bond?? If interest rate remains low, IMO, they'll most likely issue another 10-year bond next year.
(30-04-2012, 08:56 AM)yeokiwi Wrote: [ -> ](30-04-2012, 08:31 AM)KopiKat Wrote: [ -> ](30-04-2012, 08:17 AM)CityFarmer Wrote: [ -> ]I assume large part of the cash will be used to pay off the S$300 million 10-year bond issued in April 2003.
Use 4.25% PERPS to redeem 3.13% Bond?? If interest rate remains low, IMO, they'll most likely issue another 10-year bond next year.
Use the 4.25% PERPS to buy the 6% PERPS of Hotel Properties..haha
Or maybe, Singpost decides to tear down its Paya lebar building and build a mega mall!!!
(30-04-2012, 09:14 AM)KopiKat Wrote: [ -> ](30-04-2012, 08:56 AM)yeokiwi Wrote: [ -> ]Use the 4.25% PERPS to buy the 6% PERPS of Hotel Properties..haha
Or maybe, Singpost decides to tear down its Paya lebar building and build a mega mall!!!
The Peya Lebar one is their SPC (Singapore Post Centre), I thought already done up and earning rental income? I was thinking more of their Bukit Panjang one which is a standalone building, maybe can tear down and build shoe-box units of condo with an integrated SingPost PO right at the entrance or they can combine with the neighbouring plot of land (occupied by a Kindergarten now) for a much bigger project...
(30-04-2012, 08:31 AM)KopiKat Wrote: [ -> ](30-04-2012, 08:17 AM)CityFarmer Wrote: [ -> ]I assume large part of the cash will be used to pay off the S$300 million 10-year bond issued in April 2003.
Use 4.25% PERPS to redeem 3.13% Bond?? If interest rate remains low, IMO, they'll most likely issue another 10-year bond next year.
(30-04-2012, 09:23 AM)shanrui_91 Wrote: [ -> ]There is already a junction 10 beside it which has 388 apartments. Perhaps they can change it into some gaming or tuition place?http://www.junction10.com.sg/index.aspx?key=about-mall
CityFarmer Wrote:I was expecting SingPost to issue another bond to redeem the S$300 million 10-year bond due next year, but they did it with a PERPS instead.
(30-04-2012, 09:54 AM)KopiKat Wrote: [ -> ]CityFarmer Wrote:I was expecting SingPost to issue another bond to redeem the S$300 million 10-year bond due next year, but they did it with a PERPS instead.
Let's see if you are right. For me, reading what the aggressive new CEO is saying in their Press Release makes me nervous that he's likely going to use up all the cash for some massive ego boosting acquisitions...