Wednesday, 19 July 2017

Finally had some Luck - NetLink Trust

Hasn't had the best of luck in the recent IPOs that I applied. Pressed for Unusual and Sanli but ended up with zero for both and $4 poorer.

So it was pleasant that I managed to get some for the latest IPO - NetLink NBN Trust. I applied for 30,000 shares via ibanking on Sunday night and was allocated 6,000 shares today.

20% allocation. Hmm not too shabby.

Though I mentioned about the lack of luck above, I am not too surprised about getting some allocation for NetLink. Afterall the public float was huge as compared to other IPOs such as Kimly's.

Furthermore I have read about some lacklustre online opinions about this stock from fellow investors these few days.

So I was quietly confident this time.

I have actually wanted to write about this IPO few days ago. But I realised many bloggers had already done so and they did such a good job in their writeups which I felt I could not contribute more in a meaningful manner.

Anyway everyone has their own reasons for and against this stock.

I will just share my reasons for my interest in this stock.

Firstly I like the recurring income of this business. Stability.

Secondly like I have mentioned previously in another post, I like companies that are in sync with governmental policies. In this way they can leverage naturally on the government's push to further their growth.

NetLink is one such company.

With Singapore gearing up to be a smart nation, I can only see upside for NetLink's macro environment.

Also, with the projected continuous population growth depicted in the government's white paper, number of residential homes can only continue to increase. Another upside for NetLink.

Thirdly, if the projected dividend yield is accurate, a 5+% dividend is not too shabby at all. Good even.

Last but not least, even though the public float is relatively big the placement was still 2 times over subscribed. This shows there are significant interest in this stock, contrary to what some say.

For me barring any major upheavals, this stock is a keeper for at least the next two years.

Cheers and congrats to those who managed to get the allocation!

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