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National Financial Disaster - Capitaland, Keppel, Singtel, SPH, SIA
What if we realized that all these while, we grew these five companies on massive leverage. The management of these companies had been busy with golf and justified their fat bonuses because they recklessly grew the company. They kept growing these five companies on debts without caring if it was sustainable.
SIA is like a bus company, that speculates in vehicles and fuel prices because their cost of financing is below 2.5%pa. If they do well, they reward themselves hard. If not, the state will bail them out. Now, it is pure nonsense that we can't even walkaway from new plane purchases, by giving up deposits. Is this hinting that the management took pocket money from the plane purchases?
SPH is like an asshole who deviates so much away from their core businesses. Now, their overseas assets are not able to cover their cheap cost-of-funds. These idiots enjoy a near-monopoly in Singapore and still can't perform. Seriously, thanks to covid ads with SPH in the past six months, or SPH will be in a worse shape.
Singtel never cuts loss. All they know is to make money from Singapore and lose money overseas. Being high urbanized, Singtel has very low overheads in Singapore compared to peers in larger countries, but yet, they bleed so much money in India and even GIC has to help them. Their investments in India also are not sufficiently mark-to-market and Singtel abused their low-cost of financing and took on massive debts.
Keppel was much better-run than Sembcorp to clinch properties and O&G businesses in the past decade. Then we realize now that this is a company with poor internal and credit controls. The bribery probe in Brazil is just tip of an ice-berg, their positions in Tianjin is like a blackhole. This company is focused on busy providing jobs for arrogant former army and civil servants who frustrate subordinates.
Capitaland took on the biggest amount of debts; try asking them to offload any major overseas projects now to reduce their gearing and you will see a drop in NTA. These means that their past valuations are inflated. For more than a decade, the fat cats in the management happily bought prime overseas units of their own projects under the names of their mistresses, without a care of the world. That was their biggest priority. Don't believe? ask Liew.
Now, it appears that these five companies and/or their subsidiaries need to issue rights by mid-2021 to shore up their balance sheet. Even if stock market recovers, announcement of any rights issue will not be welcomed by retail investors.
What if we realized that all these while, we grew these five companies on massive leverage. The management of these companies had been busy with golf and justified their fat bonuses because they recklessly grew the company. They kept growing these five companies on debts without caring if it was sustainable.
SIA is like a bus company, that speculates in vehicles and fuel prices because their cost of financing is below 2.5%pa. If they do well, they reward themselves hard. If not, the state will bail them out. Now, it is pure nonsense that we can't even walkaway from new plane purchases, by giving up deposits. Is this hinting that the management took pocket money from the plane purchases?
SPH is like an asshole who deviates so much away from their core businesses. Now, their overseas assets are not able to cover their cheap cost-of-funds. These idiots enjoy a near-monopoly in Singapore and still can't perform. Seriously, thanks to covid ads with SPH in the past six months, or SPH will be in a worse shape.
Singtel never cuts loss. All they know is to make money from Singapore and lose money overseas. Being high urbanized, Singtel has very low overheads in Singapore compared to peers in larger countries, but yet, they bleed so much money in India and even GIC has to help them. Their investments in India also are not sufficiently mark-to-market and Singtel abused their low-cost of financing and took on massive debts.
Keppel was much better-run than Sembcorp to clinch properties and O&G businesses in the past decade. Then we realize now that this is a company with poor internal and credit controls. The bribery probe in Brazil is just tip of an ice-berg, their positions in Tianjin is like a blackhole. This company is focused on busy providing jobs for arrogant former army and civil servants who frustrate subordinates.
Capitaland took on the biggest amount of debts; try asking them to offload any major overseas projects now to reduce their gearing and you will see a drop in NTA. These means that their past valuations are inflated. For more than a decade, the fat cats in the management happily bought prime overseas units of their own projects under the names of their mistresses, without a care of the world. That was their biggest priority. Don't believe? ask Liew.
Now, it appears that these five companies and/or their subsidiaries need to issue rights by mid-2021 to shore up their balance sheet. Even if stock market recovers, announcement of any rights issue will not be welcomed by retail investors.
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