Hyflux Preference Shares
>> Sunday, April 17, 2011
I suppose by now every other finance blogger would have already posted about this share issue.
Judging by the strong response, market is hungry for higher returns. And allowing this issue to be CPF approved, the expected response is going to be over-whelming. As a result, even though I ain't too optimistic about the prospects of Hyflux, it would be an opportunity to make a quick buck.
There seems to be a lot of noise about its developments in middle east, a director selling off his shares, the outlook for future projects and if the company can maintain profitability with the rising cost of material after bidding so low for the projects that they have won.
Consideration:
The downside is the price tanks, then I'll be holding the preference shares for the potential 6%.
The upside is the price opens high and I can sell it off for a quick profit.
Well, looks like a risk reward that is worth a shot. Anyway, it is still anybody's guess if I'll be awarded for my bid to even have a chance at this gamble.
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