My Sweet Retirement Subscribes for OUE Hospitality Trust Rights

OUE Hospitality Trust Logo

With the issuance of rights, DPS will fall from 6.55 cents to 5.38 cents. The DPS Yield will fall from 8.6% to 7.6%.

OUE Hospitality Trust Rights Application

I asked myself the following 3 questions below previously in my post here (OUE Hospitality Trust Issues Rights to Fund Acquisition of Crowne Plaza Changi Airport Extension).

  1. As issuance of rights usually dilute the share price, what will be the fair price after rights issue? This is similar to the recent ARA rights issue whereby the share price fell from estimate $1.17 to $1.05 after rights issue.
  2. How do I subscribe for the rights?
  3. How do I or should I subscribe for excess rights?

As issuance of rights usually dilute the share price, what will be the fair price after rights issue?

I found out what I am asking is actually known as TERP (Theoretical ex-rights price). TERP is the calculated price for a company’s stock shares after issuing new rights-shares with the assumption that all the newly issued shares are taken up by the existing shareholders. The TERP price is S$0.7092.

How do I subscribe for the rights?

The easiest way is to apply via ATM (Automated Teller Machine).

  1. Click on More Services.
  2. Look for the menu item whereby it says something about “Rights application”.
  3. Select OUE HTrust Rights.
  4. Enter the maximum number of rights you wish to receive. Click Enter.
  5. Enter the excess rights you wish to receive.
  6. That is it!

The fifth person has an excellent step by step guide here. (A Step-By-Step Guide How to Apply for Rights Shares by ATM).

How do I or should I subscribe for excess rights?

I have shown you above how to apply for excess rights. I have applied for OUE HTrust excess rights as well. At an issue price of S$0.54, it is selling at 23.9% discount as compared to TERP and 29.4% discount if you compare to closing price of S$0.765 as per 7th March 2016.

OUE Hospitality Trust Rights Issue Price

ST Engineering Contract Win with TERREX 2

Terrex 2

On 17th March 2016, ST Kinetics, the land systems arm of ST Engineering announces that they have been awarded the contract for 13 prototypes of the amphibious combat vehicle Terrex 2 by the US Marine Corps. The 13 Terrex 2 prototypes would be tested next year.

The contract that was awarded to ST Engineering (STE) and partner Science Applications International Corp (SAIC) was worth US$121.5 million. If the US Marines select the Terrex 2, a further contract will be awarded for the building of another 204 vehicles at an average procurement price of up to US$6.5 million per vehicle (Total worth US$1.3 billion)

Competition

During the tenders for the US Marines contract, ST Engineering and BAE Systems are the two firms selected to build prototypes. BAE Systems was awarded a smaller US$103.8m contract for the SuperAV vehicles.

Book Review: The Daily Edge

The Daily Edge This is an excellent book by David Horsager that teaches you simple strategies to increase efficiency and make an impact every day. In layman terms, this book teaches you about increasing productivity.

Besides reading financial related books, I also read books that teaches me about increasing my productivity and efficiency.

My reason is that I can learn to do things faster and better at work so that I can spend more time on my retirement portfolio. I have more passion analyzing stocks and read up on financial planning as compared to my current nine to five office job which does not give much flexibility. If I am productive at work, who knows I may earn another promotion which may or may not translate to a pay increment!

The book provides thirty five tips or high impact ideas to get you organized. For example, the first tip talks about creation of a 90 days quick plan. I find this very useful and can be applied to my stock portfolio planning. Where is my stock portfolio now? Where am I bringing my stock portfolio to in 90 days? How am I going to make it happen for my stock portfolio in 90 days?

However beautiful the strategy, you should occasionally look at the results. – Winston Churchill

I highly recommend this book to all of you and I give it an excellent rating of 5 out of 5 stars!

Rating_Excellent