Sunday, July 27, 2014

Jersey Boys

Synopsis: The film tells the story of four young men from the wrong side of the tracks in New Jersey who came together to form the iconic 1960s rock group The Four Seasons. The story of their trials and triumphs are accompanied by the songs that influenced a generation, including “Sherry,” “Big Girls Don’t Cry,” “Walk Like a Man,” “Dawn,” “Rag Doll,” “Bye Bye Baby,” “Who Loves You,” and many more. [Source: Cathay Cineplexes]

Nice vocals and get ready to immerse yourself in the music of The Four Seasons! The movie tells the story of the entire life journey of the band, from its rise to eventually its fall. It also showcases hits from the band that are still very well known today. Not a bad movie to catch for the long weekend holiday.

Rate: 7/10

Thursday, July 24, 2014

Accordia Golf Trust

Short Summary:
AG Trust is the first business trust comprising investments in golf course assets in Japan to be listed on the SGX-ST. The Trustee-Manager’s key objectives are to invest in golf courses, driving ranges and golf course related assets that are able to generate long-term, stable cash flows, while paying continuous distributions to Unitholders and maximising long-term investment returns of Unitholders by generating long-term capital value growth through future acquisitions. AG Trust’s initial portfolio (the “Initial Portfolio”) will comprise 89 golf courses (including the golf course related assets relating to such golf courses) located across Japan (the “Initial Portfolio Golf Courses”), with 86.4% of the Initial Portfolio Golf Courses, based on their appraised values as at 30 September 2013, located in the three largest metropolitan areas in Japan, namely, the Greater Tokyo Region, the Greater Nagoya Region and the Greater Osaka Region.

The Deal:
Offering Price: S$0.97 - $1.00
The Offering: 782,025,000 Shares (Include 41,163,000 Offering Shares to Singapore Public)
Cornerstone Investors:
275,880,000 (25%) Accordia Golf Co., Ltd.
Forecast Dividend Yield:
2015: 9.10% (Including non-recurring items from restructuring)
2016: 7.00% (Excluding non-recurring items from restructuring)
*Based on issue price of $0.97, 1,099,122,000 units after IPO.
Dividend Policy:
AG Trust has adopted the following policy in respect of distributions to be made to Unitholders out of Distributable Income:
(i) in respect of Forecast Year 2015, the Trustee-Manager shall make distributions of 100.0% of Distributable Income to Unitholders; and
(ii) in respect of FY2016 onwards, the Trustee-Manager shall make distributions of at least 90.0% of Distributable Income to Unitholders.
AG Trust will make distributions to Unitholders on a semi-annual basis, with the amount calculated as at 31 March and 30 September each year for the six-month period ending on each of the said dates
- A unique opportunity to invest in the first SGX-ST listed business trust with an initial portfolio comprising golf course assets located in Japan
- Access and exposure to the golf course industry in Japan
- Quality initial portfolio of golf courses to provide stable and attractive yield
- Strong growth opportunities
- Sponsor’s comprehensive support under the Sponsor Support Agreement
- The financial performance of AG Trust is dependent on the condition and outlook of the golf course and golf course related industries, which are in turn susceptible to cyclicality and other factors outside the control of AG Trust or the Trustee-Manager
- Future acquisition of golf courses by AG Trust (through New SPC or otherwise) may not provide the anticipated benefits and may ultimately fail
- New SPC and/or AG Trust may not be able to divest under performing golf courses on a timely basis and on acceptable terms in order to optimize its portfolio
- The performance, commercial viability and profitability of the Initial Portfolio Golf Courses are or will be dependent upon weather conditions and seasonality factors
- Further decline in the golfing population in Japan may adversely and materially affect the golf course business and operations of AG Trust
- AG Trust’s business is subject to fluctuations in Japan’s overall demographics and economic environment
- Average gearing of 35%

An interesting business trust IPO that sells golf courses to retail investors. On the whole, the yield by itself doesn't look particularly attractive. With recurring yield forecast at 7.0%, I can easily get better deals elsewhere. Personally, I do not agree with some of the strengths that the sponsor is promoting. For example "Strong growth opportunities" that is mentioned in the prospectus, does it really have "strong growth" opportunities? In the information disclosed, the sponsor has put in the below graphs:

As we can see, the total number of golfers is on a downward trend even though Japan's population are aging. With the overall reduction in golfers, how is it possible for the trust to sustain strong growth opportunities?

Golf revenues, like what the prospectus has indicated, are highly cyclical. Since the financial crisis hit in 2009, golfing industry has drastically declined and has yet to recover to the pre-crisis level. From the trend, it looks unlikely that the trust will be able to deliver stellar results in the coming few years. Given the available information, I will give this IPO a miss.
Some useful information:
[21 Jul 2014], [9.00 a.m.] : Opening date and time for the Public Offer.
[24 Jul 2014], [4,00 p.m.] : Closing date and time for the Public Offer.
[25 Jul 2014]: Balloting of applications under the Public Offer, if necessary.
[01 Aug 2014], [2,00 p.m.]: Commence trading on a “ready” basis.
Rating for investment: 1.5/10

Disclaimer: You may use the above information as a guide, but please invest based on your own judgment. 

Monday, July 14, 2014

Commencement 2014

Officially graduated from NUS again with M.Sc (SHE Tech). Thanks *mds* for your support all these while~

Monday, July 07, 2014

Transformers: Age of Extinction

Synopsis: TRANSFORMERS: AGE OF EXTINCTION begins after an epic battle left a great city torn, but with the world saved. As humanity picks up the pieces, a shadowy group reveals itself in an attempt to control the direction of history…while an ancient, powerful new menace sets Earth in its crosshairs. With help from a new cast of humans (led by Mark Wahlberg), Optimus Prime and the Autobots rise to meet their most fearsome challenge yet. In an incredible adventure, they are swept up in a war of good and evil, ultimately leading to a climactic battle across the world. [Source: Cathay Cineplexes]

The highly anticipated Transformer sequel is finally here. This time, a new cast is assembled as well as a new species of transformer called the Dinobots are introduced. As usual, there are lots of actions and fighting scenes but the number of autobots transformers on screen seems to have dropped to just a pathetic four. Overall, the movie is pretty average but I still highly recommend to catch it in IMAX. One bad point of this movie is that I feel that sponsors for this movie seems to have a larger say. The brand exposure in the movie seems to have gone overboard, so much so that scenes and actions are being forced into the movie just for the one or two seconds branding exposure. In summary, being a transformers movie, it is still a good catch.
Rate: 7.5/10