CitySpring Infrastructure Trust rights issue

[lzydata]

RIGHTS ISSUE TO RAISE GROSS PROCEEDS OF S$210.2 MILLION
S$0.39 per Rights Unit at 27.1% Discount to Closing Price
11 Rights Units for every 20 Units Held
Irrevocable Undertaking by Temasek for 85% of Rights Units
Underwriting Commitment by DBS Bank, Goldman Sachs and Morgan Stanley for Remaining 15% of Rights Units

Announcement: http://info.sgx.com/webcoranncatth....ile/Rights_Issue_Announcement.pdf?openelement

Presentation: http://info.sgx.com/webcoranncatth....$file/CitySpring_Presentation.pdf?openelement

 

[Some-one]

Not subscribing to the rights and would be selling all....

My mistake is not learning FA before I bought the stock and trusting the management for its cash earnings....

 

[MikeL09]

I will subscribe even though this has been one of my worst performing stocks in terms of capital depreciation.

Just as they say... investors tend to hold on in the hope of price recovery!
Denial, denial, denial!

 

[quailmaster]

As long as yield don't fall below 5%.. think its ok.. i bought at $0.50

 

[Paul Lee]

I will print out this announcement and frame it up as a reminder to myself that analysis without action is meaningless.

I saw this coming since the start of the year and was looking to divest; and even told my friends who were vested to divest. But either cockiness, laziness, procrastination or any other reasons you want to attach, I did not act on my plan to divest.

And now I'm caught in a situation where I really dun wish to add more. And have to suffer additional capital loss if I try to divest now. I think I will just bite the bullet and move on. If I wait for the CR, I think the price would drop further.

 

[Some-one]

I will print out this announcement and frame it up as a reminder to myself that analysis without action is meaningless.

I saw this coming since the start of the year and was looking to divest; and even told my friends who were vested to divest. But either cockiness, laziness, procrastination or any other reasons you want to attach, I did not act on my plan to divest.

And now I'm caught in a situation where I really dun wish to add more. And have to suffer additional capital loss if I try to divest now. I think I will just bite the bullet and move on. If I wait for the CR, I think the price would drop further.

Don't worry. We are in the same boat...I can only blame myself...would be reducing my holdings and would not add any more.

 

[Mecisteus]

Not subscribing to the rights and would be selling all....

My mistake is not learning FA before I bought the stock and trusting the management for its cash earnings....

now i know your nick at CNA forum

i used to hold FSL, Cityspring and MIIF in my portfolio. I have divested the 1st 2 early. FSL is now trading 50% lower than my selling price. and i think cityspring will trade around 40+ cents post rights. still waiting to divest MIIF.

note this rights issue is for paring down debt. from what i read, they need another rights issue in future if they are to make acquisitions.

 

[Alphidius]

Ah crap... I heard Paul's warning and was looking to sell this bugger but I guess it's too late now...
Is the rights renounceable?
Die die must subscribe?

 

[kenpachi82]

this is really a dud. and i thought you can't go wrong with infrastructure..

 

[Dividends Warrior]

The Japan Tsunami "woke" me up and kinda pushed me to strengthen my portfolio wif blue chips. I divested from FSL, CitySpring and K-Green Trust in Mar. Then reinvest in Singtel, M1, Singpost and F&N. Going great so far.

http://dividendsrichwarrior.blogspot.com/2011/03/cleaning-up-my-dividends-portfolio.html

 

[The_Davis]

i also divested from k-green, cambridge

my worse performers so far

 

[Mecisteus]

Ah crap... I heard Paul's warning and was looking to sell this bugger but I guess it's too late now...
Is the rights renounceable?
Die die must subscribe?

its renounceable. i presume you dont hold large quantity of shares. if little, then you better go and sell your mother shares now. or else your right shares may become worthless and too costly to sell later on

 

[quailmaster]

I dun think the shares will become worthless.. Compared to other reits which hold property I think city spring is less risky .. Think it's a matter of how much u should pay for the shares

 

[Some-one]

I dun think the shares will become worthless.. Compared to other reits which hold property I think city spring is less risky .. Think it's a matter of how much u should pay for the shares

I beg to differ on this. Compare to other REITs, Cityspring has huge debt. Thus, it is more risky in the financial side. It is less risky because of it business. No one can do without gas now and it is a monopoly at the moment. Other than private gas companies, there is no other competitors that can provide the endless gas that they have.

I was wondering how did they rack up such a huge debt. Maybe one day I should go and check its business history....Hmmm....

 

[quailmaster]

Think it cost a lot to build the infrastructure whether it's a water purification plant or perhaps a cable line .. Once it is set up, u get a consistent cash flow which can then be used to pay back the building cost ..I think this type of cash flow is more consistent and reliable than rental

 

[chensing]

Kim Eng downgrade CitySpring to 46cts...


The last time it proposed 1 for 1 rights issue at $0.48 in July 2009,the price was traing at about 66cts,so theoretical after ex rights shd trade about 57cts but now 50.5cts ,,,,feel those who own must as well sell cum rights...wonder any distribution units to be given for this FYE 31March 2011.Not vested any more as I have sold cum rights in 2009 but still look at Cityspring occasionally...understand give periodically cash distributions as dividends

 

[Some-one]

Kim Eng downgrade CitySpring to 46cts...


The last time it proposed 1 for 1 rights issue at $0.48 in July 2009,the price was traing at about 66cts,so theoretical after ex rights shd trade about 57cts but now 50.5cts ,,,,feel those who own must as well sell cum rights...wonder any distribution units to be given for this FYE 31March 2011.Not vested any more as I have sold cum rights in 2009 but still look at Cityspring occasionally...understand give periodically cash distributions as dividends

The dividend for the quarter ending FY 31 March 2011 has been given. It's the same amount, 1.05 cents per share. However, I have sold all my shares today. My loss is about -6.05% or about $550. Together with the first batch that I sold, my loss should be about $448.

I think it is important to learn from mistakes. The mistakes that I have made in this investment is not knowing FA before buying and to trust the management on cash earnings. After I learn FA, my own calculation has shown that the debt-equity ratio of the last FY is 456% and the ROIC and ROE is -1.13% and -6.3% respectively.

I also made the mistake of buying on friend's advice. I believe that my money would be put to better use if I buy another stocks.

Adios to CitySpring. Thanks for the lessons that you have taught me....

 

[WindBoi]

It's amazing for thenlure of dividends why I did not get into this. But the sian thing about this is it came from trmasek and shows how much they are willing to screw up investors.

Take a look at earnings. For a utility compare to ausnet there is practically nonr. It is living on changes to working capital and depreciation. Does that mean they do not need capital replacement ?

 

[chensing]

Looks like bottom at 48cts...not likley to hit 46ctsTP...may push >50cts once cum rights approved on Jul 28 at the EGM48cts all eaten up..today seen some action when it moved toward

 

[Crimson__Tide]

Looks I will advise my mum to sell off liao. Have better yielding trust with almost zero debt out there such as Kgreen.