Wednesday, 18 February 2015

Happy Chinese New Year!


This is a confusing zodiac. Is this suppose to be the year of the goat or the year of the sheep

Here is a link to explain the difference between the goat and the ram but my view is that since the Chinese zodiac originated from China, it is probably more of a mountain "goat" than a woolly sheep found in New Zealand. 

It is also interesting to note that reference to this animal is usually "negative" in Chinese idioms. I can easily think of a few idioms such as 羊毛出在羊身上, 亡羊补牢, 挂羊头卖狗肉, 顺手牵羊。If you are interested to learn about some of the idioms, the link is here.



I take this opportunity to wish readers a healthy and prosperous year of the Green Wooden Goat.

祝愿大家羊年身体健康,洋洋得意,心想事成!

This post is intentionally scheduled for an auspicious date and time too. 18 Feb 8:08 am. ^_^


Sunday, 8 February 2015

Finally something is being done !


I posted the above picture on my FB page yesterday morning and that picture garnered many "Likes". Frankly it's about time prospectus be written in plain English! There is another interesting article on writing in plain English here.

MAS said in its consultation paper that "You should always draft prospectus with the retail audience in mind as they are the audience with the greatest need for information". The link to the MAS consultation paper is here.

Given that I have diligently read hundreds of prospectus since July 2007, I think my views should be heard too since I am the retail user they are targeting ^_^

If you think about it, what I am essentially doing at my blog is to read through the prospectus, sift through the pages to look for material information and then summarize them in an easy to understand format. Of course, more importantly, I tell you whether the IPO is chilli hot and the possible fair value range. 

Let me share with you why the prospectus are so difficult to read and can cure people with acute insomnia

Prospectus are written by lawyers...

In my line of work, I have worked with many lawyers. Lawyers are trained and paid to "cover all angles of risks". 

In order to prevent their clients from being sued by investors in future for non-disclosure, all risks (no matter how immaterial) will be listed as a potential risk in the prospectus. As such, half the time, the risk factors in the prospectus are purely "CYA"  stuff written in convoluted legalistic jargons. 

Proposed changes is definitely great news for investors

The proposed changes include:
  • write in plain English without jargon
  • present information in a clear, concise and logical manner
  • avoid legal and financial jargons
  • write in active rather than passive voice
  • use short sentences 
  • write in personal pronouns
  • avoid multiple negatives
  • use tables, charts and graphs 
  • use bullet points, examples and descriptive headings
  • keep prospectus as short as possible and remove redundant information

Examples of proposed changes 






I have gone through the detailed consultation paper. It is definitely a huge step forward in the right direction. You should support it too!

Public may submit their feedback to MAS by March 13 to PartXIIISFA_SFR_amendments@mas.gov.sg

but the bigger problem which MAS should quickly address is the IPO famine in Singapore.

While it is good that retail investors can start reading prospectus written in plain English,  what is the point if there are no meaningful IPOs to begin with.... Isn't it time MAS and SGX do something about this? Mr. IPO has been "jobless" for quite a while already... 

What happened to the past consultation paper?

Now i suddenly remember SGX consultation paper in October 2012 to allocate more shares to retail investors, especially if the IPO is chilli hot. Isn't that long over due too?  Perhaps some kind readers can remind MAS to remind SGX....



Monday, 19 January 2015

Collaboration with Mr. IPO

I spend the weekends rewriting my strategies for each of my blogs to make it clearer and easier for readers to follow and understand. It is my intention to engage my readers more in various aspects over time but let's take it one step at a time and i will start with the IPO blog today.

You can find the updated IPO strategy at this link.

Here comes to the main topic for today's post. I am thinking of ways in which i can add value to the investing community here as well as benefit my facebook followers. Some of the ideas i have (but yet to consider its feasibility) include creating an "IPO Club" where companies can invite us to their IPO road shows for a start and maybe over time, allocate some placement shares to this IPO club members? Tell me what you think of this idea?  ^_^ perhaps a bit far-fetched but give me some time to consider if it is feasible. I may also start looking for volunteers to help interviews the CEOs as well.

Please find below my main "marketing pitch" today of which the link is here.

Collaborating with Mr. IPO

This blog started on 07 Jan 2007 to research on companies listing on the Mainboard and Catalist. The original idea was to have a placeholder to record my own thoughts on whether i should subscribe for the shares of the IPO companies.

Over the years, this blog managed to attract investors, traders, brokers and punters who are keen to read about the independent but super-biased views of Mr. IPO on whether they should subscribe for those IPOs. The blog posts have also been shared in popular websites like Share Investment and forums like Hardwarezone and Shareinvestor.com. On some occasions, the research reports released by brokerage firms even bore a close resemblance to the articles written on this blog...

Traffic and Social Media

Mr. IPO's Facebook page currently has more than 3,300 followers and whenever there is a popular IPO, the blog attracts more than 25,000 unique visitors to that post easily.



How Mr. IPO can help listing aspirants?

Mr. IPO would like to help companies listing on SGX and Catalist gain public awareness. Many IPO aspirants are too small or too new and local investors are not familiar with them. Mr. IPO can help in the following ways:
  • Feature a special introduction on the Company and its business activities on the blog
  • Feature a video interview with the CEO or CFO to discuss the business strategies and business plans
  • Invite Mr. IPO and his Facebook followers to the IPO roadshow and meet the CEO
  • Tap on Mr. IPO's extensive network and resources to find institutional investors or the minimum number of shareholders required.
Who should contact Mr. IPO?
  • Sponsors or Corporate Advisory firms advising their clients for listing on SGX and Catalist
  • Public relations firms who are helping their clients with the listing 
  • Investors relations departments of Companies going for listing
  • Deal makers who are helping the Companies on the share placement tranche
What Mr. IPO will or will not do

Mr. IPO will continue to do his usual write up on all IPO companies. His chilli ratings will continue to be independent but super-biased and he will continue to be transparent in his shareholdings (if any). His ratings will not be affected by whether he received any compensation for the posts. This is because he is not even sure if people will pay him to do an advertorial hahaha... but he wouldn't mind paying for the shares that he likes at the IPO subscription price.

Please do not contact Mr. IPO if you think his chilli ratings can be purchased. Those who think that the chilli ratings can be bought may want to visit the wet market instead. He will not let the credibility he has painstakingly built up over the years to go down the drain. He fully understands that reputation takes 3 years to build but only 3 minutes to destroy it so he will not allow anything foolish to happen....

Mr IPO contact details

Mr. IPO can be contacted at 2ycapital@gmail.com 
Please send the email using a suitable subject header so that it wouldn't end up in the junk box. Please leave a contact number so that he can call to discuss over phone or arrange to meet up for a cup of coffee to discuss ways in which he can be helpful.

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