29-04-2012, 10:50 PM
(29-04-2012, 10:10 PM)CityFarmer Wrote: I witness the magic of Perpetual securities on net asset of a company, the SingPost. The SingPost net asset magically goes from ~332 Mils to ~660 Mils, PB ratio goes from 6.71 to 3.15 without any "real" increase in asset, but a perpetual loan of ~347 Mils.
What a power perpetual security!
Magically, there goes the 15% ROA and 50% ROE that this company has.
So should it be kick out of my ROA and ROE watchlist? A very interesting question...