A Sincere Mistake

October 4, 2009 at 10:24 am Leave a comment

Finally, the sincere watch saga is near an end. A consortium comprising of Standard chartered PE,LVMH-sponsored capital group, tay liam wee and the lender banks who were owned money by Peacemark has put up a cash bid of approx. 54 cents for sincere watch.

This is way below the NAV of 72 cents and below my buying price. Although, i have collected abt 12 cents of dividend on the way and about to pocket another 5 cent declared last year which will be paid this year (finally!). I still make a loss of abt 20%.

As 99% of sincere shares lie in the hands of the trustee controlled by the lender, they certainly will accept the offer and the consortium will proceed to compulsory acquisition of the shares of minority shareholders at this low price which undervalues sincere.

This lesson teaches me to be not greedy. I should have accepted the peacemark offer last year and thus avoid the unfortunate incident of peacemark liquidation. Of course, this is hindsight thinking, who could have foreseen the liquidation of Peacemark, even Tay Liam Wee was kept in the dark.

Another lesson i learnt was that singapore’s company act is unfair to minority shareholders as we are forced to accept any offer, regardless of its undervaluation. So next time, if faced with another cash takeover, as long as the price is right, i will take it.

Entry filed under: Mistakes. Tags: .

Signs of a property bubble forming Agricultural Commodities bubble in the making

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