๐—ง๐—ต๐—ฒ ๐—จ๐—ก๐—”๐—ง๐—ง๐—ฅ๐—”๐—–๐—ง๐—œ๐—ฉ๐—˜ ๐—ก๐—ฎ๐˜๐˜‚๐—ฟ๐—ฒ ๐—ผ๐—ณ ๐—ฆ๐—š๐—ซ

Do you know that since the beginning of this year, MORE BUSINESSES have LEFT the Singapore Exchange (SGX) than to JOIN?

Companies that have delisted:
– BreadTalk

Companies scheduled for delisting:
– Soo Kee Group (Sept 2020)
– Alibaba Pictures (Dec 2020)

๐Ÿ’Ž A Peek at Soo Kee Group

$0.15 or 15 cents.
Thatโ€™s what SK Jewellery (Soo Kee Group) is offering her investors, as she seeks to delist from the Singapore Exchange.

This Offer Price of S$0.15 values the Company at S$84 million, and exceeds the highest closing price of the Shares in over 2 years. Over the last year, it had even trailed as low as $0.05!

This looks like a good opportunity for investors to cut the losses, especially if they have held on to this โ€œjewelโ€ for the past 5 years.

Now, earlier investors would have cursed themselves as they bought into the IPO price of $0.30. On that day, the newly minted listed company and their investors saw their share prices hammered by repeated waves of speculative selling, and SK ended the dayโ€™s low of $0.245!

โ€œThe first day performance of Soo Kee is the worst for the eight IPOs we had so far this year, IG Markets analyst Bernard Aw commented, back on 21 August 2015.

If there was any thing that brought some consolation, it would have been the fact that the Soo Kee Group issued annual dividends from 2016 till 2019.

๐Ÿ“ WHAT DOES IT MEAN TO YOU?

The idea of dollar cost averaging doesnโ€™t hold weight in the local stock market because of low liquidity and valuations.

Rather than face further falls or fluctuations in share prices, some business owners chose the strategy to take advantage of the current low borrowing costs, and therefore take their companies private once again.

But this means that to the retail investor, you will not be able to invest long term in the local stock market.

I have always emphasized that for us to invest in stocks and funds, we need to be able to see the strength of these funds with more than 10 years of proven track records.

Unfortunately, our local Singapore Exchange is becoming more and more UNATTRACTIVE.

#WealthNuggetsWednesdays #MARKofLeaders #XmarksTheSpot

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