Saturday, 4 June 2016

My thoughts on rights issuance

Rights issue = an issue of shares offered at a special price by a company to its existing shareholders in proportion to their holding of old shares.

When I think of rights, I think of share dilution. More shares at cheap price for existing shareholders, some would scurry to sell off once they get hold of the rights share before the full dilution takes effect.

Not all rights are right to get. However, if you decided not to get then you might be better off selling away the shares instead of holding them (before full dilution takes place as mentioned). A few questions you can ask yourself before taking the leap of faith are - why is the company issuing rights? This in turn gives answer to what it would do with the money gathered. Most of the time it is for paying off debts. Fair enough. But what's next? How are they going to turn their business around? What data did you get your convictions from? How are you able to minimise your risk?

(From a bad past experience, when a company can't turn its business around fast enough, it's share price would plummet faster than one could finish swearing and starts to react. Plummeting could continue even after price dilution effect has taken place.)

To get or not to get? To jump or not to jump?


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Wednesday, 1 June 2016

SME's resources

It is very interesting to find out about government's support on our local grown SMEs. So I have been 'sua ku' all along! Heard about them but really didn't bother to find out more till now.
Here are some of the resources:

IDA Singapore - https://www.ida.gov.sg/Programmes-Partnership/Small-and-Medium-Enterprises

SME Portal - https://www.smeportal.sg/content/smeportal/en/bizguides/business-development.html

Enhanced ISprint Program - https://www.ida.gov.sg/Programmes-Partnership/Store/Enhanced-iSPRINT

Programmes by NLB - http://www.nlb.gov.sg/golibrary/programme/Business.aspx


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Have been too busy in my new job to blog about stocks. Market has been quite quiet lately so I am staying dormant too.
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