fraserscomm

current price 0.210

looks like still some ways to go before a date for their rights issue is officially fixed

3 rights for 1 share
priced at $0.095 each or speaking in dollar terms, $95 each lot

PSL holdings and Yellow Pages

just 2 shares that recently caught my attention

both having rights issue soon,

PSL Holdings
1 right for every 2 shares
Right share priced at $0.02
Current stock price $0.200
Listed on catalist, received approval from sgx to transfer to mainboard
Record net profit for FY2008

Link to FY2008 financial report
My thoughts - this rights issue looks like a pure reward for current shareholders
pls note - PSL holdings is a very illiquid share

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Yellow Pages
5 rights+2warrants for every 2 shares
Right share priced at $0.150
Warrant converts at $0.175
Current stock price $0.325
Stagnant business model, Consistent dividends

Link to FY2008 financial report
My thoughts - this rights issue will be to pay back their $130million debt maturing in sept 2009

Starhill Global Reit - announces 1 for 1 rights issue

"The Rights Issue will reduce refinancing concerns in a tight credit environment and enhance
Starhill Global REIT’s financial flexibility to carry out asset enhancement and seize attractive acquisition opportunities near the trough of the property cycle."


S$0.35 per Rights Unit, representing approximately:

45.3% discount to Closing Price of S$0.64 per Unit
29.3% discount to TERP of S$0.495 per Unit
56.4% discount to pro forma NAV per Unit post completion of the Rights Issue of S$0.802
Gross proceeds of approximately S$337.3 million
Pro forma FY2008 yield of 11.0% based on the Rights Issue Price


Rights Issue closure date : 21 July 2009 at 5.00 p.m.
Commencement of “nil-paid” rights trading period: 24 July 2009
Close of “nil-paid” rights trading period : 3 August 2009
Expected date of commencement of trading
of the Rights Units on Singapore Exchange
Securities Trading Limited (“SGX-ST”)
: 19 August 2009

link to full document


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New rights priced at $0.350
Lowest share price was $0.390 on 9th march 2009

I find the new rights sufficiently cheap compared to its post-rights NAV of $0.802, also the new rights are priced lower then the worst price that starhill global reit plunged to during the bleak march period.

The XR date seems to be 21 july 2009, so its still quite a long way to go. Given the current weakness in market sentiment, who knows what will happen.

Some buying strength detected among reits and trusts

The Strong

Global Investment +5.3% (sgx shows 7.9% because of a misleading 1 lot purchase at 0.205 )
Frasers Comm +4.3%
Mapletree Log +2.7%
K Reit +2.1%

The reason for Global investment's strength is probably the tax-exempt "$20 per 1000 shares" dividend, ex date on 1st july, thats about 10% yield at current prices

Frasers Commercial could be benefiting from their stronger debt position as they have received offers from several banks to refinance the $500mil + due this decemeber 2009 (repayment successfully delayed from july 2009 to december 2009)

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The Weak

SaizenReit -3.8%
Cambridge -2.9%
CapitaMall -2.9%
MacqIntInfra -2.9% (full name: Macquire International Infrastructure)
AscendasReit - 2.6%
CitySpring -2.4%
SuntecReit -2.2%

CapitaMall and SuntecReit have risen sharply this year and we are probably seeing profit taking going on. Their debt positions are healthy.

markets are correcting

A dark cloud covers the kampong village of singapore...........etc etc

anyway it looks like the markets have entered a choppy period of trading since 2 weeks ago and looks like it will continue being a nervous market as people prepare to sell but still hope for a furthur rally

assuming the lack of any furthur substantial good news, i am Guessing that markets will go down from even more profit taking and lack/erosion of buying sentiment

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Economic news..we had a period of mostly Hopeful news in march/april/may but june is turning mixed, in fact more people are comparing the lativa economy with the asian crisis and it Could be over-hyped but who knows...certainly not the man-on-the-street !

anyway IF the lat breaks down and crisis sweeps that part of the world, i dont see how it will materially affect the singapore economy...except for a fresh wave of selling in the stock market..

Singapore economic news remains gloomy, it seems that our export dependent nation will have to depend on external factors, we cant dig ourselves out of this hole...

Unlike China, they can attempt to stimulate domestic demand to compensate for the fall in exports, but we cant..