stock talk.
More of my recollected memories, this time from the supper conversation: I realise my mind replays things by default when it is at rest.... maybe thats why I get these deja vu feelings all the time... freaky...cant seem to stop it tho...
Anyway, having been burnt in the recent M&A, (merger was called off cos there was a divergence in common understanding of the terms of agreement...), I have decided to remain as a private entity for a longer period. It will take a while before the size will grow again, and it will be a while before shareholder interest can again be garnered for another M&A and subsequent public listings. the market is very quiet... deadly still in the aftermath of that embarassing disengagement of talks. And granted it should be so. Most failed mergers attract more publicity than successful ones, and leave deeper and greater impression to the public. And to the shareholders of course.
Over late night tea with Pee, we decided perhaps it would be wiser to NOT consider M&As as a pavement to future listing, but rather to just diversify the portfolio, and do constant reinvestments. Granted, the going would be slower and the risks higher... but the kick would be ten times more and the returns ten fold. An assured partner firm would be desirable in the long run, but as far as the volatile futures market is concerned, a commitment at too early a stage is pure folly. Learning from the previous failure - never renegotiate the CPs no matter what, and never lower the standards for due diligence. Lesson learnt, but kept for another day... for now, it is short term diversified investment!
If I do not remember wrongly, we discussed blue chips as a starting base. Expensive, inert and stable, they should never be the foundation of the portfolio. But, given how the M&A did a whitewash of projected assets, it would be wise to deal with the stable before plunging on. We suggested a 30% base of blue chips, spread amongst a few. REIT is to be considered, given its rise, though it is hardly blue. Boring blues aside, another 30% of the liquidity can be plunged into cheap penny stock. The focus would be on young start-ups or PRC Chinese offerings. They come, they go, but before they wind up, we sell and earn. Penny stocks cant hurt too much, for you dun really give that much to begin with. The stability of the Blues adds to the assurance as well, so there is little worry. The remaining 40% will then be used on bonds as reserves. Bonds, being neutral and medium in risk, may be quickly reverted to cash for liquidity. Having a good portfolio of bonds would help in further diversification, or future acquisitions. Lastly, we mentioned offshore trading. The SFA in Singapore is quite crappy, with a small pool fixated on "foreign talent". Perhaps it is better to trade overseas. Hang Seng, Nikkei, Wall Street. Ah... But not in the near future.... You need more reserves for that kind of endeavour. Key asset requirements are still lacking in certain areas, though soon to be met.
I am still stuck with plenty of debentures that needs to be let off without losses first. Post merger, everthing is still in a mess. Over commitment has stripped kep essential reserves thought to be recoupable by the merger. Everything has to stay fixed for now, for resturcturing. It sucks, but it is better than plunging onto new investments with bad debts or accounts accruing yah? Never let Murphy leer her ugly head.
It is amazing what frens can discuss over tea at 3 am. Pee says she'd need for her due diligence to be over before she can join me in the hunt. Plagued with a dubious private offerings, she needs to consider whether to take them up (thereby freezing her assets), or to go stock hunting with me. We shall enjoy the offering talks. Yo listened and rolled her eyes. Never into planned investments, she does not appreciate all these considerations. However, she dun need to. Her reserves were still going strong, and her bond pay-offs had been handsome. Did well with the US side too, so it would need a rather attractive offering to veer her away from her current commitments. Not into diversification. Oh well, different people, different portfolios.
A belated answer to AL: It is true, with the hours we put in, might as well be IB and earn five fold over. Two point answer to that: firstly, the requisite opportunity and financial training + looks are absent. Secondly, the current field is a tapering slope - things get easier as we go and the moolah too. For IB, few go past beyond the first few years. So, I guess it is a choice made because there is not much of an alternative.
Although, I strive to keep options open all the way. Speaking of which, I should really try to keep fit, least when things go awry I cannot flee to the skies again.
So... blue chips and penny stocks... seek securities in diversities... and leave futures for another day.
Anyway, having been burnt in the recent M&A, (merger was called off cos there was a divergence in common understanding of the terms of agreement...), I have decided to remain as a private entity for a longer period. It will take a while before the size will grow again, and it will be a while before shareholder interest can again be garnered for another M&A and subsequent public listings. the market is very quiet... deadly still in the aftermath of that embarassing disengagement of talks. And granted it should be so. Most failed mergers attract more publicity than successful ones, and leave deeper and greater impression to the public. And to the shareholders of course.
Over late night tea with Pee, we decided perhaps it would be wiser to NOT consider M&As as a pavement to future listing, but rather to just diversify the portfolio, and do constant reinvestments. Granted, the going would be slower and the risks higher... but the kick would be ten times more and the returns ten fold. An assured partner firm would be desirable in the long run, but as far as the volatile futures market is concerned, a commitment at too early a stage is pure folly. Learning from the previous failure - never renegotiate the CPs no matter what, and never lower the standards for due diligence. Lesson learnt, but kept for another day... for now, it is short term diversified investment!
If I do not remember wrongly, we discussed blue chips as a starting base. Expensive, inert and stable, they should never be the foundation of the portfolio. But, given how the M&A did a whitewash of projected assets, it would be wise to deal with the stable before plunging on. We suggested a 30% base of blue chips, spread amongst a few. REIT is to be considered, given its rise, though it is hardly blue. Boring blues aside, another 30% of the liquidity can be plunged into cheap penny stock. The focus would be on young start-ups or PRC Chinese offerings. They come, they go, but before they wind up, we sell and earn. Penny stocks cant hurt too much, for you dun really give that much to begin with. The stability of the Blues adds to the assurance as well, so there is little worry. The remaining 40% will then be used on bonds as reserves. Bonds, being neutral and medium in risk, may be quickly reverted to cash for liquidity. Having a good portfolio of bonds would help in further diversification, or future acquisitions. Lastly, we mentioned offshore trading. The SFA in Singapore is quite crappy, with a small pool fixated on "foreign talent". Perhaps it is better to trade overseas. Hang Seng, Nikkei, Wall Street. Ah... But not in the near future.... You need more reserves for that kind of endeavour. Key asset requirements are still lacking in certain areas, though soon to be met.
I am still stuck with plenty of debentures that needs to be let off without losses first. Post merger, everthing is still in a mess. Over commitment has stripped kep essential reserves thought to be recoupable by the merger. Everything has to stay fixed for now, for resturcturing. It sucks, but it is better than plunging onto new investments with bad debts or accounts accruing yah? Never let Murphy leer her ugly head.
It is amazing what frens can discuss over tea at 3 am. Pee says she'd need for her due diligence to be over before she can join me in the hunt. Plagued with a dubious private offerings, she needs to consider whether to take them up (thereby freezing her assets), or to go stock hunting with me. We shall enjoy the offering talks. Yo listened and rolled her eyes. Never into planned investments, she does not appreciate all these considerations. However, she dun need to. Her reserves were still going strong, and her bond pay-offs had been handsome. Did well with the US side too, so it would need a rather attractive offering to veer her away from her current commitments. Not into diversification. Oh well, different people, different portfolios.
A belated answer to AL: It is true, with the hours we put in, might as well be IB and earn five fold over. Two point answer to that: firstly, the requisite opportunity and financial training + looks are absent. Secondly, the current field is a tapering slope - things get easier as we go and the moolah too. For IB, few go past beyond the first few years. So, I guess it is a choice made because there is not much of an alternative.
Although, I strive to keep options open all the way. Speaking of which, I should really try to keep fit, least when things go awry I cannot flee to the skies again.
So... blue chips and penny stocks... seek securities in diversities... and leave futures for another day.
posted by Zachary Shim | 5:02 pm
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