Frasers Centrepoint raising S$200m from bond issue. What you need to know if you are applying.

Frasers Centrepoint raising S$200m from bond issue. What you need to know if you are applying.

For starters, it will be good for you to know how Bond Price Move even though in this application you will get it at par value.

Bonds are generally issued in multiples of $1,000, also known as a bond's face or par value. But a bond's price is subject to market forces and often fluctuates above or below par. If you sell a bond before it matures, you may not receive the full principal amount of the bond and will not receive any remaining interest payments. This is because a bond's price is not based on the par value of the bond. Instead, the bond's price is established in the secondary market and fluctuates. As a result, the price may be more or less than the amount of principal and the remaining interest the issuer would be required to pay you if you held the bond to maturity.

The price of a bond can be above or below its par value for many reasons, including:

• interest rate adjustments;
• whether a bond credit rating has changed;
• supply and demand;
• a change in the creditworthiness of a bond's issuer;,
• whether the bond has been called or is likely to be (or not to be) called; or,
• a change in the prevailing market interest rates.

If a bond trades above par, it is said to trade at a premium. If a bond trades below par, it is said to trade at a discount. For example, if the bond you desire to purchase has a fixed interest rate of 8 percent, and similar-quality new bonds available for sale have a fixed interest rate of 5 percent, you will likely pay more than the par amount of the bond that you intend to purchase, because you will receive more interest income than the current interest rate (5 percent) being attached to similar bonds.

- See more at: http://www.finra.org/investors/bond-basics#sthash.3GbDfoSb.dpuf

Next, you need to read up on what you are buying. Please do not buy because everyone say can Buy or Not.

Read the proper announcement.

http://infopub.sgx.com/FileOpen/Frasers%20_Centrepoint_launches_first_Retail_Bond_%20offering_12May15.ashx?App=Announcement&FileID=349449

If you got any Questions which you need accurate confirmation or answers,

For media queries, please contact:

 Frasers Centrepoint Limited

Gerry WONG / Karina CHOO / SIEW Lay Eng
Tel: +65 6277 2679 / +65 6277 2677 / +65 6277 2678
E-Mail: fclgroupcomms@fraserscentrepoint.com

In General, for this Frasers Centrepoint bond issue,

Only Apply if you can lock in for 7 years. 

1.apply from atm like ipo or ibanking
2. minimum $2000 for retailer
3. coupons will be issued into the bank account by default semi annually
4. after 7th year you won't receive coupons from the bond you hold and you have to redeem back from the issuers or sell into the bond market.
5. Additional info from Chang Han Thomas

Kenji, need to add that u can bid a min of 2k, thereafter multiples of 1k. That means can bid of 2k, 3k, 4k, but not 4.5k or 2.2k

6. Opens now till 20th May 12pm, with a minimum of $2000, and subsequent increase of $1000 thereafter.
7. Date of Trade 25th May.

One more thing to add : just like IPO, need to pay a little transaction fee to the bank. Also need a CDP account if not,you can't apply. from Chang Han Thomas

So the main idea is not to apply it at the last minute so you have enough time to rectify any issue with the application.

Redemption Part

1. Automatic redemption. 2. You'll get the standard sgx announcement that such and such bonds are redeemed back. 3. Auto refund back to your bank account 4. (if the issuer choose to redeem early) starting from the 4th year , your yield would actually be 3.85% from the earliest with gradual decrease to 3.65% by 2022. 5. For every $1 bond, if you redeem on the 4th year on 22nd May 2019, you get a total of 8 coupon payments of $0.01825 each. So the total coupon payments is $0.01825*8 = $0.146. You will redeem back at $1.01825, so you make a capital gain of $0.01825. In total, you get 0.01825 + 0.146 = $0.16425 over 4 yrs. Your returns is therefore 0.16425/1 x 100% divided by 4 yrs = 4.10625% pa source from my facebook discussion with .Chang Han Thomas

Lastly, is it suitable for everyone?

The yield and returns are easy to beat if you are savvy in investment.

This product is suitable for people who want a peace of mind and have a plan 7 years later for that ROI.

Like what me and Chang Han Thomas agrees on.

Always do what you are good at and make more money from it.

Then you can use other vehicle to let that money work for you in returns.

Invest and Apply Safely Everyone.

Why am I interested in personal finance? (restricted access)

Why Don't People Care About Personal Finance (feat Cheerful Egg and Xeolyenomics)

Busy Year for me but it will be great to share why some people don't care ( or to me simply Don't Know how to care) about Personal Finance.



Let's start with this: "SAVING FOR A RAINY DAY!"

This is the only thing I can remember from my academic years....hmm..wait from my Primary School Education.

I couldn't recall more on any Financial Advices other then to get a good paying job or make more money to start a family.

Nothing was taught on:

1. getting the correct property or properties with or without grants

2. using my CPF to assist me in my retirements

3. getting the right type of insurance depending on my needs or dependants

4. using my medisave to get an integrated shield plan that gives better coverage

5. getting various tax relief that benefits my families member or doing charity

6. how to invest slowly and accumulate wealth

7. how to avoid Get Rich Quick Scams

The list goes on and do add into the comments if i missed any.

I am not blaming the Education System for not teaching us how to care about our Personal Finance.

We have Good Education System that make our people reputable in their diploma or degree certificate but that does not highlight to our people that Personal Finance is more important then just getting a job or Saving money for a Rainy Day.

I apologise if Personal Finance is one own self responsibility to find out and if they did not make the effort to make this discovery, they are to be blame for their own demise.

To be honest, Not every one are born equal and that is why a good directional guide will help them and the choices will be theirs to make.

In fact, Singapore did provide many sources of information to educate the public on CPF, getting HDB grants and Personal Finance.



The problems lies in the solutions and information is there but the AWARENESS to the public is not there.

Beep! Beep! Beep!

My timer for my 30 minute write up is up so I will finish this article soon.

I really like how Singapore have Television show case Pioneer Generation Video to create awareness

https://sg.news.yahoo.com/video/pioneer-generation-video-featuring-mark-024313328.html

We might thought this is the only education video available but if we check online there are more useful education videos like those below on CPF.

https://www.youtube.com/user/CPFvideos?gl=SG&hl=en-GB

A Good way to start is to shows video (in school) or on tv air time or online on where good informations can be found for individual needs.

The Good Direction will help more people to know how to care about their Personal Finance and use the good resources provided by Singapore to make our country a better home.

Good night Everyone!

Earnings Per Share

Earnings Per Share (EPS) is the single most important variable used in determining the earnings power of a company. 

In calculating earnings per share, the dividends of preferred stocks need to subtracted from the total net income first.
Companies also reported diluted shares in their financial reports. Diluted shares include the shares of convertibles or warrants outstanding.
But investors need to be aware that Earnings per Share can be easily manipulated by adjusting depreciation and amortization rate or non-recurring items.
Earnings per share without Non-Recurring Items , which better reflects the company's underlying performance.

Compared with Earnings per share, a company’s cash flow is better indicator of the company’s earnings power.

If a company’s earnings per share is less than cash flow per share over long term, investors need to be cautious and find out why.

Price Earning Ratio

• The P/E ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the P/E ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
• In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a companys earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower-P/E stocks are more attractive than higher P/E stocks so long as the P/E ratio is positive. Also for stocks with the same P/E ratio, the one with faster growth business is more attractive.

• If a company loses money, the P/E ratio becomes meaningless.

• Investors need to be aware that the P/E ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable.

Story About Monkeys & Goats and How it Applies in the Stock Market

Read the story and you will understand.

Note - This story isn't quite the same as the monkey story you may have got in one of those chain-forwarded emails.

So there was this village where one day a man appeared and said that he wanted to buy monkeys. He said that he would pay Rs 100 per monkey. The villagers caught all the monkeys in the neighbourhood and sold them to him for a hundred rupees each. Soon another man appeared and said that he would pay Rs 200 for each monkey. But there weren't any more monkeys around. They were all owned by the first man. So the villagers went to him and said that they were willing to take the monkeys back and return his money. But the monkey owner was unwilling to sell. The villagers raised the offer price to Rs 150 per monkey, then Rs 175 and finally to Rs 199 but the man just didn't want to sell, even though he clearly didn't have any use for the monkeys. Eventually, just to see whether he would sell, they offered him Rs 200 but he still refused.

The villagers were puzzled by this. Finally, one of them figured out that there must be someone else who was going to come to the village and offer even more money for the monkeys. Convinced that this was the real explanation, they went and offered the man Rs 300 for each monkey and sure enough the man accepted. Joyous at having landed such a good deal, they quickly paid him off before he changed his mind and took possession of the monkeys. The man went away with his money and lived happily ever after. The villagers waited for the next buyer. And waited… And waited... But no one ever appeared who wanted to buy a monkey.

But wait.

If you think you've guessed the moral of the story, you are wrong because the story isn't over yet.

There was another village nearby. In this village a man appeared one day and offered Rs 1000 each for a goat. Now goats were valuable, but not as much as a thousand rupees so the villagers sold the goats to this man. A similar thing happened here too. A second man appeared, offered Rs 2000 for each goat, the first man refused and eventually the villagers ended up buying the goats back for Rs 3000 each. Here too, the two men disappeared and no one ever came and offered so much money for a goat again.

But there was a difference.

Goats aren't monkeys. They could be milked every day and the milk was good and healthy. Even the goat droppings could be used as fuel (not sure of it though). When the goats eventually grew too old to be milked, the villagers could kill them for mutton. All in all, it wasn't a complete disaster.

But the monkey-owners were not so lucky. Since these weren't demat monkeys, they actually had to be kept in one's house. The monkeys ate too much, shouted and shrieked all day and sometimes bit people.

Eventually, when it became clear that the monkeys were worthless, their owners abandoned them and tried to forget about their losses.

And that's the Moral of the Story.

In the stock markets today, there are good companies that are overpriced and there are worthless companies that are overpriced. If you are going to be a fool and pay absurd prices because you think that a greater fool will appear in the future, make sure you buy a goat and not a monkey.

Note– The story is sourced from here.

Are you a Lender?

There are 3 type of people who borrow from you.

1st type: Those who borrowed.

They want to pay but will never be able to pay back.

2nd type: Those who borrowed.

They got money to pay but they don't want to pay back.

3rd type: Those who borrowed $50, return $20.
Then borrow $70 to match up to $100 dollar.
Returned $50 and later borrowed $150 to match up to $200 till they are not able to pay back.

The Best Way to make a Person FORGET you is to Lend them Your Money.

Lend Safely Everyone!