Why is Hyflux willing to pay out dividends of 6% per annum on the pref shares when it can borrow at 3.85% annum? This is a premium of 56%.
Is it lowering its debt to equity ratio from 75% to 25%, only to raise it again in the near future? If it does this would affect the risk premium of the preference share in future, thereby affecting its yield.
Six per cent is a gd rate but think of the risks which includes projects in the Middle East.
AGRICULTURE and water investments will be the best performers over the next 10 years, according to BlackRock founder and CEO Larry Fink.
“Go long agriculture and water and go to the beach,” said Mr Fink, whose creation was now the biggest funds manager in the world, with $US3.5 trillion ($3.07 trillion) under management — more than the GDP of Germany.
“Put those investments in the bottom drawer for 10 years. It’s unlike anything else we have in the world.”
Agriculture and water would even beat energy investments, he said.
“They’re finding lots of ways to find new energy — Israel’s going to be an exporter of natural gas and I’m hearing there’s more oil under Iraq than Saudi Arabia, for instance, although it’s not secure.”
Part of WSJ story
Well on SGX, we got Hyflux and at the shitty end of water plays we got CitySpring and Asia Water.
