Blue Huat kueh for blue Singapore chip.
Huat arrhh~
Investshare....I am glad that you can stay rational and saw the value of a blue Singapore chip.
Yes, we might never catch the bottom but when there is value it would be worth accumulating . Good Luck
While I think DBS made a mistake, I think the market punishment is quite sufficient by now. The market cap is now $4b below book value, add that with the about $1b est quarter profit, a total of $5b! This is equivalent to price in half of the $20b O&G exposure will default, and that DBS can recover 50% from those default. Barring no other surprise, I think the price now is quite fair. Those who want more safety margin can wait. I am vested at $14.86
Will AMTC be Swibers white knight? But even that, I believe hair cut is inevitable.
AUG 6, 20165:50 AM
Singapore
LONDON-BASED private equity firm AMTC's deal with beleaguered Swiber Holdings is still "alive", although it is likely to take another form now that the firm is under judicial management, its chief executive Smith O'Connor said.
"Our team, including the legal and compliance desks, are working on how we can do this deal with Swiber . . . in a different way. We have a representative who flew in to Singapore today," Mr O'Connor told The Business Times in a phone interview.
AMTC (its full name is AMTC Global Investment Solutions, according to its website) was originally meant to provide a lifeline to Swiber through a US$200 million subscription of its preference shares.
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According to an affidavit filed by Swiber to support its judicial management application, the payment from the UK-based fund was delayed and Swiber eventually refused to extend the deal's completion date as requested by AMTC.
In the meantime, AMTC had agreed to provide a bridging loan but even that had not come through, piling more pressure on Swiber.
Help came from DBS Bank, Singapore's largest bank and Swiber's primary lender, which provided a bridging loan and overdraft facility for the ailing offshore firm to redeem two bonds worth a total S$205 million in June and July.
Mr O'Connor said: "We were happy to do a deal with Swiber. It's a good company with nice people trying their best to go through the obstacles (facing the industry)."
Even so, AMTC's investors, comprising investors from the Middle East and Russia, needed a little more convincing that the deal was a sound investment given the headwinds facing the oil and gas sector. This was all the more so because a Singapore-based consultant hired by the private equity firm had not deemed the investment to be a wise one, Mr O'Connor said.
"It's not that we didn't want to transfer the funds. We sent a strong message that the deal will go ahead but we have a right to protect our investment.
"We needed some more time to go through the report (prepared by the consultant) and run it by our board and investors," he added.
Time, as it turned out, was not on Swiber's side. Faced with a cash flow crunch, mounting debt repayments and a flood of letters of demand, the firm took the drastic step to wind up its operations, only to rescind the move a couple of days later and opt for judicial management following a pep talk with its key bankers from DBS.
"That news (of the winding up) - and the resignation of directors - was a big shock for all of us," Mr O'Connor, who has a 10 per cent share in AMTC, admitted.
Then, he added: "But we are still interested to support Swiber . . . there is good value. The deal is alive."
In a separate announcement on Friday night, Swiber said a brief outline of an Interim Judicial Managers' Report will be submitted to the High Court by Aug 19. Creditors may request a copy from its interim judicial managers' solicitors, Rajah & Tann Singapore LLP.
The actual Interim Judicial Managers' Report will be submitted to the High Court by Sept 2 and a judge pre-trial conference will be held on Sept 5.
No issue which was why I comment your point as correct and accurate. DBS do have a large 650M general provision .
Using 200M from here and adding $150M this qtr is very normal. especially having a 1.05B profit this qtr.
They can certainly rebuilt the general provision over qtrs.
Thanks
Dont get me wrong. I am all in support of dbs - I've been long for sometime now!But just wanted to point out the little accounting trick they have employed for those not accounting-trained who were confused (incl the newspapers)
surefire...u are correct.& accurate...BUT general provision was $650M so really taking 200 out is what it meant for..MOST important...this qtr it add $1.05B ( not m ) profit ....in such climate, do you think that MOddy is talking sense ?
Anyway what I am trying to point out is that DBS is still having a strong set of resuts many banks would welcome.Below $15 is definately too cheap ( review its book value and ROI) ....Happy investing.
Congrats, Sun. Good result plus something positive here...
http://www.businesstimes.com.sg/companies-markets/deal-with-swiber-still-alive-amtc-ceo
LOL Funds buying....
Fuds buying 🙂
Brother, I' m with u. N I' m sure u are well intentioned (seriously no cynicism attached). But I' d also like to say that the fact DBS has a sizeable general provision contingency to better cushion for a rainy day does to some extent mean they have not been completely imprudent. So, may be fair that they are able to draw on, n not having to provide in full, for the Swiber thing. Others might disagree, it' s OK by me. But I think we cld all post our 2cts, realistically of course, to share.
Dont get me wrong. I am all in support of dbs - I've been long for sometime now!But just wanted to point out the little accounting trick they have employed for those not accounting-trained who were confused (incl the newspapers)
surefire...u are correct.& accurate...BUT general provision was $650M so really taking 200 out is what it meant for..MOST important...this qtr it add $1.05B ( not m ) profit ....in such climate, do you think that MOddy is talking sense ?
Anyway what I am trying to point out is that DBS is still having a strong set of resuts many banks would welcome.Below $15 is definately too cheap ( review its book value and ROI) ....Happy investing.
can buy today
Peace, indeed. I am serenely at peace with myself. Just seems so strange to me people seem to have not much concern chionging into so many other super penny stocks with cashflow problems, n not much worried expressed in this SJ, yet are fretting so much abt DBS. For me I' m sure DBS is adequately managing its debt n NPLs. So, peace indeed.
Peace
The result is good.But what we worry is their exposure to O& G sector. Swiber is just the tip of the iceberg, there could be more coming.
There will be a slight technical rebound up but next week DBS will continue to slide downward.
Just my opinion
Peace.
Edited....
Target price : $ 18.90
Based on 1.12 x P/B, which is derived from the Gordon Growth Model (ROE : 9.3%, COE : 8.3% (Beta 1.1x) and growth 0%)
UOBKayHian
6 days ago...Target price : $ 18.90
Based on 1.12 x P/B, which is derived from the Gordon Growth Model (ROE : 9.3%, COE : 9.3% (Beta 1.1x) and growth 0%)Esitmated profit for 2Q16 : $ 882M
I' m not a qualified analyst.
It all depends on macroeconomics and market conditions.....
Dont get me wrong. I am all in support of dbs - I've been long for sometime now!
But just wanted to point out the little accounting trick they have employed for those not accounting-trained who were confused (incl the newspapers)
surefire...u are correct.& accurate...BUT general provision was $650M so really taking 200 out is what it meant for..MOST important...this qtr it add $1.05B ( not m ) profit ....in such climate, do you think that MOddy is talking sense ?
Anyway what I am trying to point out is that DBS is still having a strong set of resuts many banks would welcome.Below $15 is definately too cheap ( review its book value and ROI) ....Happy investing.
What dbs did was to use up $200mm of their general provision. hence they only charged an addition specific provision of $150mm. A bit of a fudge since it means they now have less general provision to cover other loans. But it achieved the objective of everyone focussing on 150 instead of 350
UOBKayHian
6 days ago...
Target price : $ 18.90
Based on 1.12 x P/B, which is derived from the Gordon Growth Model (ROE : 9.3%, COE : 9.3% (Beta 1.1x) and growth 0%)
Esitmated profit for 2Q16 : $ 882M
I' m not a qualified analyst.
It all depends on macroeconomics and market conditions.....
superb info, bro ..... noted the Strong Balance Sheet ..... do you think DBS should be re-rated to $20 ?
Peace 
The result is good.But what we worry is their exposure to O& G sector. Swiber is just the tip of the iceberg, there could be more coming.
There will be a slight technical rebound up but next week DBS will continue to slide downward.
Just my opinion
Peace.
yup ..... very pivotal that this quarter it added $1.05B profit ..... 🙂
The result is good.
But what we worry is their exposure to O& G sector. Swiber is just the tip of the iceberg, there could be more coming.
There will be a slight technical rebound up but next week DBS will continue to slide downward.
Just my opinion
Peace.
yup ..... very pivotal that this quarter it added $1.05B profit ..... 🙂
surefire...u are correct.& accurate...BUT general provision was $650M so really taking 200 out is what it meant for..MOST important...this qtr it add $1.05B ( not m ) profit ....in such climate, do you think that MOddy is talking sense ?
Anyway what I am trying to point out is that DBS is still having a strong set of resuts many banks would welcome.Below $15 is definately too cheap ( review its book value and ROI) ....Happy investing.
Just before today ...doomsayers ....shout $13 for dbs....oil industry all closing ( all debt is w DBS) dividend is not coming ....etc.
WHO WAS BUYING UP when our retail sell off.....
Now its back above $15 and confirm dividend maintain at 0.30 .....Believe in DBS is one of the best local banks. Well managed....just like OCBC>
Very happy investing. Happy National Day.
yup ..... very pivotal that this quarter it added $1.05B profit ..... 🙂
surefire...u are correct.& accurate...BUT general provision was $650M so really taking 200 out is what it meant for..MOST important...this qtr it add $1.05B ( not m ) profit ....in such climate, do you think that MOddy is talking sense ?
Anyway what I am trying to point out is that DBS is still having a strong set of resuts many banks would welcome.Below $15 is definately too cheap ( review its book value and ROI) ....Happy investing.
PE of 10 for such strong balance sheet is not demanding at all, isn' t it ?
Brother, if not for the Swiber provision (which I actually thought shd have been provided under 3Q16 instead), earnings wld have been nearer 1.2 bil, n 2016 earnings cld, according to my own guestimate, have been, or at least get very close to, 5 bil. That wld give EPS of close of 2/share, or PE of abt 10 at 20SGD. So, personally, I' d stick my neck out for a tp > 20. But then again, don' t know what the creative bunch in the media industry n the like wld come up with. So, I wldn' t rush in to buy with exuberence .....
superb info, bro ..... noted the Strong Balance Sheet ..... do you think DBS should be re-rated to $20 ?
