Bonds

Nam Cheong : A Painful Experience For Bondholders

It was just another day for me but to the bondholders of Nam Cheong, they must be having a bad day.  Yet again, another company within the marine sector hit by financial woes. Now, if I may say so in a way that does not mock, the problem with most investors is that they chase yield without looking at the underlying issuer's finances. And to tell you truthfully, my heart goes out  to those affected by Nam Cheong's Bonds.  I think, maybe, this is one of those instances that I could talk about as I have some ideas regarding the analysis of bonds. Do note that this is just a "back of the envelope" sort of analysis and we won't be going into a full on in depth credit analysis here. In fact, these sorts of "rough" calculations do shed some light on these matters. (more…)

Case Study

Kimly Limited IPO : Count Us Out On This!

Kimly Limited IPO: One of the few things that confound me as an investor is why do retail investors demand participation in a hot IPO that seems overvalued? And the answer is simple. Everyone wants the opportunity of making a quick buck. And the problem is this : IPO's are usually fairly or overvalued. Didn't you know already? IPO stands for It Is Probably Overvalued. It probably isn't the first time you have heard this and it won't be the last. But the truth of the matter is retail investors will not pay  heed to prudence in investing. Rather, they pay  heed to greed. Enticing Story (more…)