Sunday, 4 September 2016

What to do with the conditional cash offer for my Sim Lian?

Sim Lian has offered at $1.08 to exit and will be delist from the exchange, and I have accepted the offer. What am I suppose to do, as a minority minority shareholder, it seems that we do not have much a choice. This is a stock with good dividend and discount to it's NAV, for most of the investors, it would be nice to keep it as a long term investment, enjoying it's dividend and as well as it's capital gains. Yes, on it's offer, this counter has given me a 25% capital gain from my initial buy price.

Why did I buy Sim Lian

  1. I noticed that the major shareholders, including it's founders were buying their own shares. If the owners have confidence in their own company, we should pay attention.
  2. Good dividend, my original intend was to buy and collect it's dividends.
  3. A bonus came along the way, for some reason, the share price also appreciate slowly over time.

How should I use the cash offer

Below are few of the shares either new or existing (which I will top up), which are on my radar now.
  1. OCBC bank - I have mentioned this counter in one of my earlier post, most of the reasons there are still valid.
  2. GL - this counter is largely unloved due to property sentiment
  3. CSE Global - this counter is also largely unloved due to the current state of oil and gas industry.
  4. UOL - this counter is largely unloved due to the current property sentiment. 
I might post my opinion on the above counters in the next posts, above is not recommendations, please do your own homework.

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