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Citydev NCCPS
08-04-2014, 03:28 PM.
Post: #11
RE: Citydev NCCPS
(08-04-2014, 03:14 PM)opmi Wrote: during the last crisis, NCCPS drops to 80 cents...if you bought CDLHT at 50 cents (with similar corporate 'guarantee'), you would have get 4X your money..

I am saying NCCPS is not great safe haven vehicle.

True, so one buy NCCPS now and exit at crisis, he/she will probably lose 20%. But if he/she chooses CDLHT instead then he/she might lose 70%. If I am choosing a place to park, it means I am opting for low risk. I agree with you that the NCCPS is not a great safe heaven asset, but isn't CDLHT even worse?

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08-04-2014, 03:46 PM. (This post was last modified: 08-04-2014, 03:48 PM by corydorus.)
Post: #12
RE: Citydev NCCPS
Here's my logic. People who go into PS, due to capital protect nature with fixed return, there is no gain elements. So is not apple to apple comparison.

If CDLHT go bust, NCCPS or Main share, both investment go to zero. Sure, PS comes before share holders.

The whole idea to in be NCCPS, like most preference shares, you may not get the dividends if the company performance is poor or average. The trade off is, you may get them in "fixed amount" and your capital protected. While main share holder suffers the mental anguish of up and down in stock price

If the company downtrend is bottoming or is doing well, main shares is the place you like to be for CDLHT.
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08-04-2014, 03:54 PM.
Post: #13
RE: Citydev NCCPS
I still have an autograph certificate of City NCCPS by Kwek Leng Beng.

The original intention of the issue was to pass on the section 44 tax credit by end 2007. 2007 came and went and City did nothing to redeem the issue.

The price used to trade at a certain discount to the true value but given that the redemption is in the hands of City Dev, any holder of NCCPS can only count on Kwek's generosity.

If you have no problems earning a fixed return indefinitely, then keep it and hope for the one day.

Vested
Odd Lots
GG

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08-04-2014, 03:58 PM.
Post: #14
RE: Citydev NCCPS
(08-04-2014, 03:28 PM)valuebuddies Wrote:
(08-04-2014, 03:14 PM)opmi Wrote: during the last crisis, NCCPS drops to 80 cents...if you bought CDLHT at 50 cents (with similar corporate 'guarantee'), you would have get 4X your money..

I am saying NCCPS is not great safe haven vehicle.

True, so one buy NCCPS now and exit at crisis, he/she will probably lose 20%. But if he/she chooses CDLHT instead then he/she might lose 70%. If I am choosing a place to park, it means I am opting for low risk. I agree with you that the NCCPS is not a great safe heaven asset, but isn't CDLHT even worse?

OK. Not a good comparison if we are talking about safe haven.

I actually comparing the implied corp guarantee of CDL for NCCPS and CDLHT during the last crisis.
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"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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08-04-2014, 04:03 PM.
Post: #15
RE: Citydev NCCPS
(08-04-2014, 03:54 PM)greengiraffe Wrote: I still have an autograph certificate of City NCCPS by Kwek Leng Beng.

The original intention of the issue was to pass on the section 44 tax credit by end 2007. 2007 came and went and City did nothing to redeem the issue.

The price used to trade at a certain discount to the true value but given that the redemption is in the hands of City Dev, any holder of NCCPS can only count on Kwek's generosity.

If you have no problems earning a fixed return indefinitely, then keep it and hope for the one day.

Vested
Odd Lots
GG

Best for CPF money for those not into active investing.

Gave up on CDL NCCPS conversion long ago...
=========== Signature ===========
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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08-04-2014, 04:28 PM. (This post was last modified: 08-04-2014, 04:29 PM by valuebuddies.)
Post: #16
RE: Citydev NCCPS
I think being a reputable company, one might want to get rid of the preference shares. It is near impossible for the CDL to approve the conversion now because the dilution impact is too severe, but can't CDL negotiate with the existing NCCPS holders to override with a more reasonable conversion ratio to achieve win-win situation?

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08-04-2014, 04:31 PM.
Post: #17
RE: Citydev NCCPS
(08-04-2014, 04:28 PM)valuebuddies Wrote: I think being a reputable company, one might want to get rid of the preference shares. It is near impossible for the CDL to approve the conversion now because the dilution impact is too severe, but can't CDL negotiate with the existing NCCPS holders to override with a more reasonable conversion ratio to achieve win-win situation?

Kwek said some investment bankers propose some plan to exercise the NCCPS 2 AGMs ago. Now no news already....
=========== Signature ===========
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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