Friday, July 01, 2016

Croesus Retail trust preferential offering

Those holding Croesus retail trust needs to fork out money again. This was after their most recent rights back in Oct 2015 which I've blogged about here, here and here. There is now a preferential offering exercise going on, and in all respects, we can treat this as a rights exercise.

Here's the details:

The dilution isn't that much. It's an offer of 10 new shares for every 259 shares held before it goes XR, priced at $0.797 for every new shares. Why 259? I've no idea, must be the doing of their financial wizards. If you own 10,000 shares of Croesus before XR, you'll need to fork out $307.72 to subscribe to the new shares. It's not that much, really.

The price went up to a high of 0.82 today strangely, but perhaps not surprisingly. It wouldn't look too good if the new shares is priced at $0.797 but the share price is trading below that.

I'll be subscribing to it, and applying for excess if available.


Lizardo said...

Looks like this trust takes more money than they distribute?

la papillion said...

Hi Lizardo,

Yes, so far, from my spreadsheet, they did take more money than they give out haha!

Anonymous said...

I wont buy this stock. Paying $50M to buy the trustee manager is only enriching their own clan. Who knows if its $ from right pocket to the left? Normal they will prop up the price to entice shareholders to take up the right. Come ex-rights, we will see...

la papillion said...

Hi anon,

I do agree that they seem to overpay to buyout their reit manager. I would have voted against it but it wouldn't make a difference to the final voting outcome. But all the reports are saying this is unprecedented and it's good. Nah, I don't think so. I'm hoping for a 'saizen' outcome for croesus haha

Anonymous said...

This was the point that Teh Hooi Ling made in her book about Reits. If so good deal, they keep it for thyself. Why bother to share with strangers through IPO? So be careful when chasing after yield. Don't enrich others without even knowing. Retail is always in the losing end in this aspect.

la papillion said...

Hi anon,

The same can be said for all the company that went IPO isn't it? If it's so good, why IPO? Even for Miss Teh herself, if she's so good, why share her knowledge in her news columns and books? The pt is we can't go on our lives thinking that anything that is out there is out to harm us. We take the necessary risk and allocation and move on, adjusting on the go.

Also, pls put a nickname so that I know I'm taking to the right anonymous, thanks.

Rolf Suey said...

Hi LP,

I like your last comment that we cannot be over skeptical sometimes.

Smart people are skeptical but still take calculated risks and profit from it.

I had seen people who are so calculative all their life and thinking that everything others do is to take advantage of them.
The conclusion I seen with all these pple is their eventual life is often not as good despite the fact that they are rich.
They probably do not have close relationship friends or relatives or do not even trust their own family members!

la papillion said...

Hi Rolf,

Maybe these people had been severely taken advantage of in their lives and so they become very jaded and cynical. I agree with you, a healthy dose of skepticism is critical in our decision making, but too much of it will be no good. Who wants to talk to a sour plum?! LOL

owq said...

Haha, it is good to be skeptical but can't it be a win-win situation? Are we expecting the owner of the trustee-manager to sell at a steep discount?

Although, seems that the timing is a bit suspect... especially after they had made so many acquisitions. Only time will tell...

la papillion said...

Hi owq,

I agree that the timing could have been a little more planned. My friend Kyith from Investment Moats mentioned the same thing too, that they had made so many acquisitions, THEREAFTER did they acquire the reit manager. Couldn't they do the reit manager acquisition first? Wouldn't they had saved some money?

That's some major conflict of interest there.

Anonymous said...

Ha the 2 of you are resorting to personal attacks to support your personal agenda. Not an objective blog at all where ppl can share both pros and cons and warn each other of risks. But instead it looks like one that promotes herd mentality.
As of THL, go check what is she doing now. I am not invested with her or know her in any way. You can only invest with her if you are: Accredited investors - individuals with a net asset of SGD$2M by paying a 4 figure annual fee. Can any fund manager demand such terms if he/she is not proven and successful? Or the 2 of you still think you are the best investors in the world? There's no need to sour grape ppl who are successful or resort to personal attacks when others sound a word of caution. Instead we should learn from successful ppl if we want to be successful. Why most ppl remain poor even after trying very hard? Jealousy, denial, big ego??
To create wealth, take care of the risks first. Will know who is swimming naked when the tide recedes.

la papillion said...

Hi anonymous,

Who's making personal attacks here? I don't even know who to direct the attacks to, since you're anonymous. I blogged one thing, you seem to disagree, so you're sounding a word of caution. You said she is good, I disagree, then you said i'm sour grapes. What just happened?

Okay, I give up, haha!

Please leave a nickname so that I can address to the you in the future, if you're still interested in leaving a comment. Thanks!

Rolf Suey said...

Anonymous whoever u maybe,

I think we (or at least I) owe u an apology. I am sorry for causing u to think like that.


It's either we r not diplomatic enough or we r true arrogant freak who deserve the label u mentioned!

Maybe u can also try to spread to as many pple as possible not to ever read from these two arrogant useless pricks, and I will b even more thankful.

Rolf Suey said...

Hi LP,

My initial thought is just to have a good laugh about it n not to reply to this comment bcos it will be never ending. ;-)

But after some thought, there should be one or two or more readers that maybe think otherwise as "Anonymous" (haha.. sounds funny), therefore as long as there is still hope of benefiting other readers n we r clear conscience we should do the things we feel right! Ignore the noises n we want it to be constructive manner.

Anyway, I think u r too kind. We ought to be kind but to some pple who shit at ur doorstep, haha... sometimes u ought to kick some ass.. If I see him face to face, I will probably use back my younger days *Ah Beng* styles! Ohhhh... we do not even know who to kick.. Hahaha..

Ok... one thing as a open public blogger n the FEW around that does not "prior comment approval" in our blog, we ought to expect from day one we ll receive comments like that. That is the reason why we do not need prior approval, bcos we r true n we r not afraid!

To me, hence seriously it is really good to receive such comments. This is the kind of adversity that we can learn most, n not when masses agree with us.

In fact prior to but similar to this situation, it already taught me something which I nowadays don't do is NOT to give anymore individual stock analysis. Not that I m afraid but end of the day, we all know... human nature - always complicated n not easy to explain.. just too much hassle!!!

Frankly it will even b much better that the anonymous guy start to spread bad news to his clicks not to read ur blog, so that at least he is helping us to filter out the readers of his kind!!!

I am just saying that it's no use replying back to him, as the focus should be pple we care n deserve more.

You r one I care more, hence I talk to u from the bottom of my heart. U know what I mean... :-)

Rolf Suey said...

To all other readers,

First, I m not a supporter of CRT. I did sold off this share after their recent action of internalizing bcos I first I m worry about JAPAN now n second, I wish to put my money in better alternatives which I found.

Anyway, my comments above is related to LP comments that "The pt is we can't go on our lives thinking that anything that is out there is out to harm us. We take the necessary risk and allocation and move on, adjusting on the go. "


For all that matters, I just thinking we should not always be over skeptical that everyone is out to harm us. Seeking win-win is impt.

Next moment, we r in cahoots with hidden agenda, conspiracy theories encouraging herd behavior.

This is truly how we can see human nature behaves! It's perfect example to see reality versus perception!

Frankly, I do know about THL before this comment long ago. I read her book recently as follows n did a review.

Respect for her but no problem to be misunderstood bcos we simply cannot pacify everyone n all pple r entitled to their opinions. Of course LP knows about her bcos there was this online free ebook about investing ur first 20k.

LP - u even contribute to THL ebook right?

So it's pretty obvious that what the other party say is obviously not doing any research before blabbing....

Secondly, I feel that before we truly knows someone it's better not to judge. Who knows, maybe LP or I can even have assets much larger than the so-called $2M. "What only $2M, LP I thought ur dad left $200M for u?"

Anyway that is not impt. The point is it shows how immaturity in concluding a comment even before he actually knows anything more! So if we want to be clever, sometimes it's really not difficult! Just do not be a person that behaves in this manner.

Another strange comments again is how come this anonymous guy know I does not learn from successful people! Hahaha.. for those who read my blog regularly perhaps know that I m trying to learn as much as possible in my own way from successful pple.

Lastly personal attack! Haha.. why r people so worry of personal attack? He/she is just anonymous. This is one trait that u see how a person love himself so much that even if he dun have anything to lose, he is so afraid of "losing".

In one of my article as below defining my core values, one core value is "not for myself alone".

This does not mean we dun do anything for ourself. It means the smartest way is to have win-win...

But as u can see the method how that "anonymous" guy is so afraid of personal attack n retaliate in manner merely of "protecting" himself more than reasoning, we can also see the flaw of a person.

Understanding our own n other person's flaws are always so great! That also teach us how we can improve ourselves.

Slowly, this can give us more wisdom in our life. So rather than be emotional n jump into conclusion to "first protect ourselves", we ought to always think of big picture n how to create win-win. And that is clever. And to me, that is why Singapore can be successful in the last 50 yrs!

Sorry for being long winded! Just using this opportunity to share what u think can be good for us to improve ourselves by being more constructive in sharing.

Thanks LP for the comments box space! LOL

la papillion said...

Hi Rolf,

Wah, you give me face and write such a long thoughtful comment to explain yourself :) Thank you thank you!

I've been blogging since 2006 and I must say this post attracts one of the most spirited anonymous comments, haha! I'm not too worried about how others think, and I never presume to give advice to anyone regarding investments. All these are just sharing of what I'm going to do - more for my self reference than a guide of what to do next. I'll be worried if any readers follow my actions. No readers are paying me to tell them what I'm doing in the markets, nor do I have the obligation to share everything that I do. I might as well make it clear here.

Oh yes, I did contribute to the investing 20k book, but it's not under THL but bigfatpurse She's just giving the foreword for the ebook :) I thought it's a good project for all the financial bloggers here to good things like that, so I agreed to contribute. Did you know, it even inspired our neighbors across the causeway to do the same? The power of sharing!

We really got to meet up one day..not right to have no face to put to your name lol I'll arrange with our common friend that you've met when my work tapers off haha

Rolf Suey said...

Hi LP,

Really look forward to the day we will be meeting sharing not just knowledge but compassion all around!

Anonymous said...

A bunch of bastards talking cock everyday. U so good then no need to keep blogging to beg clicks from ppl to make $.

la papillion said...

Hi anonymous,

Sorry to have caused you distress, I apologise.

Rolf Suey said...

Thumbs up LP! This is true man!

In the past, I will tell anybody regardless of their size in a childish way, like not happy 1-1
And yes, fought a few battles too!

But now, I apologise too. Somebody is getting too stress.

tong said...

how to be an objective reit blog? if one does not share your views on the reits, he becomes a skeptic? attack on character? by the way anonymous - you also no need to be so stress about a subjective blog lah...