DBS issuing Preference Shares yielding 4.7%!

DBS Bank will be offering a new tranche of preference shares for subscription.

Up to S$500,000,000 in aggregate liquidation preference of 4.70% non-cumulative, non-convertible and non-voting preference shares callable in 2020 in the capital of DBS Bank will be offered, with an option to increase the offer to up to S$800,000,000 in aggregate liquidation preference of preference shares.

DBS preference shares at the issue price of S$100 per preference share will be offered to the public in Singapore through electronic applications made through ATMs belonging to DBS Bank (including POSB), Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited and its subsidiary, Far Eastern Bank Limited or the Internet Banking website of DBS Bank.

An application for the preference shares under the public offer is subject to a minimum of S$10,000 (or lots of 100 preference shares) and in integral multiples thereof. The public offer will open at 9.00 a.m. on 11 November 2010 and close at 12.00 noon on 18 November 2010, subject to changes as may be announced.

They are expected to be listed on the Main Board of the Singapore Exchange Securities Trading Limited from 23 November 2010, and will be traded in board lots of 100 preference shares.

The preference shares carry a dividend rate of 4.70% per annum, payable semiannually in arrear on 22 May and 22 November each year, subject to certain conditions. The preference shares are perpetual securities with no maturity date and are not redeemable at the option of the holder of the preference shares. DBS may redeem the preference shares for cash under certain circumstances.

The DBS preference shares OIS (prospectus) can be found here:

DBS preference shares Offer Information Statement

Genting Stock Chart 11/11/2010

Genting SP
11/11/2010

So... I was right on China Paper hitting my target price (determined by charting) of $0.165. I believed it will pull back slightly and now go into consolidation or go further up in price due to good fundamentals. I have only realised recently that although fundamentals are important, technical analysis are the indicators of when to buy and sell. Such is the thing that i experience after 5 years of dabbling in the stock markets.

Nevertheless, lets take a look at the stock chart of Genting SP as at 11/11/2010. Genting has risen quite a lot ever since it posted its massive revenue increase in the Resorts world. And according to a market report by a brokerage, we discovered that Genting is raking in $10million A DAY! The fundamentals of genting is overwhelming and we believe it can really be a long-term stock that will one day go up to be like DBS that kind.

Nonetheless, as we take a look at the indicators in the chart, I discovered an Ascending triangle chart pattern and a "Hammer" candlestick is forming right at the top of the chart pattern. It then sell down in Huge Vol. around 50% more than the daily avg. vol. The following Candlestick is a "doji" signal and the MACD is also not showing any trend so i can say that people are still confused about which direction will Genting head in.

My advice? Wait for a few more days and see what happens. Sell once it breaks below the resistance line =)