NetLink NBN Tr    Last:0.985    -0.01

Netlink Trust IPO allotment

Defensive stock..cleared 82cts liao..longer term ok lah

chengwh1      ( Date: 31-Aug-2017 15:43) Posted: Need to wait longer for the price to drop then,....

 

Need to wait longer for the price to drop then,....

 

Since the Stabilization Action required from the Underwriter, Morgan Stanley had ended on 18 Aug, I' m not surprised broking houses etc now have to rely on themselves to prop up the stock price. MS bought so much shares during the stablisation requirement.

https://www.shareinvestor.com/news/news.html?source=sg_sgxnet& nid=701553 

 

NetLink NBN Trust

 

Shelter From The Storm

 

Initiating Coverage: BUY PO: 0.940 SGD    |    Price: 0.810 SGD

Equity    |  29 August 2017

   

Key takeaways

We initiate on NLT with a Buy rating and S$0.94 price objective set on DCF valuation NLT' s 5.5% yield looks attractive given defensive cash flows and its 5% distribution CAGR on fibre migration. We acknowledge risks around regulation and technology, but these lurk mainly in the medium term.

 
Initiate at Buy, S$0.94 price objective
We initiate coverage on NetLink NBN Trust (" NLT" ) with a Buy rating and a S$0.94 price objective, implying a potential 22% total return. NLT' s 5.5% distribution yield looks attractive, given its relatively defensive cash flow profile and its 5% medium-term distribution CAGR, driven by fibre migration. And while we acknowledge risks around regulation and technology, we see these concerns lurking mainly in the medium term.
Relatively defensive shelter from the storm
NLT derives 92% of its revenue from regulated sources, with prices secure until 2022 and with volumes relatively defensive. NLT is insulated against adverse movements in opex/demand through regulatory resets (and mid-term reviews), and its regulatory model ensures steady EBITDA for the foreseeable future, even as RAB declines. Also, NLT is largely immune to rising Singapore telco competition, given its wholesale network focus (for more on rising Singapore competition, see: Singapore telcos: The storm nears).
Attractive yield largely covered by free cash flow
NLT' s 5.5% FY19 distribution yield looks attractive versus peers, given its lower-risk profile versus comparables. We see this distribution being largely covered by free cash flow from FY20, when capex normalizes. And this distribution is forecast to grow at a 5% CAGR between FY19-22, driven by rising connection growth, helped by ongoing migration away from legacy cable and ADSL technologies.
Regulatory & technology risks lurk in the medium term
Key risks for NLT are skewed to the medium term, around regulation and technology. Regulatory risks lurk in the medium term, around the 2022 regulatory reset, 2034 license expiry and the impact of a declining RAB base. And technology risks cannot be ruled out in the medium term, around competing wireless technology.

 

Can I get the Merrill lynch analyst report source? I can' t seem to find it online.

 

A reputable analyst from Merrill Lynch just call a PO of 0.94cts too. Looks like ganging up and I won' t be surprise price action will start soon.

 

But sp is standing firm at 81c. Waiting for it to go below 80c,....

 

Maybe because BBs need to get rid of huge amounts quick. Lol.

ALLOTMENT AND ISSUE OF UNITS PURSUANT TO OVER-ALLOTMENT OPTION 

Further to the Cessation of Stabilising Action Announcement, the Trustee-Manager has on 23 August 2017 issued 32,971,100 Units for the purposes of covering the balance of the 123,456,000 Units which had been over-allotted in connection with the Offering, and which were not covered by purchases made under the price stabilising action. As a result of the issue of new Units in connection with the exercise of the Over-allotment Option, the total number of issued Units in the Trust has increased from 3,864,000,000 Units to 3,896,971,100 Units. The 32,971,100 new Units rank pari passu in all respects with the existing Units of the Trust, and have been listed and quoted on the Singapore Exchange Securities Trading Limited on 24 August 2017.

http://repository.shareinvestor.com/rpt_view.pl/id/702164.1/type/sgxnet/original_filename/1

 

 

Netlink Trusts started at " BUY" with $0.95 target by DBS

 

 

Divvy payout is still a long way away,... I will only buy now if I think the SP may go up soon,... but I really don' t think the divvy is going anywhere in the near term,.... Maybe even down later-on,....

 

This type of shares are like Singtel shares lah...slow and steady growth..surge factor missing leh..

parking to see what type of dividends they will be giving out...6%? 8%? likely to be between 5-6% imho..

 

Doesn' t look promising with such announcements continuing since listing day:

http://infopub.sgx.com/FileOpen/20170817%20Stabilization%20Announcement.ashx?App=Announcement& FileID=467526

 

 

Any chance this would go up in the near future?
 

 

How now?

 

if you are vested don' t instill fear within yourself.

 

Usually 1 month after listing, stabilising manager should ceased buying back or earlier when the over-allotment of the securities as announced (ie.123 million shares) has been fully covered.

 

GuavaXF30      ( Date: 24-Jul-2017 10:08) Posted: No sure how long more the backers are allowed to buy in to stabilize the stock but there is a time limit. The hope is that by then, the punters who borrowed from banks to subscribed would have been weeded out Otherwise there will be more drop in price. Smart investors will do well to stay on side-line as dividend to be earned can be a lot better than the 5.4% promised at IPO price.  Sorry for holders but my personal target is to aim for 6 % dividend. Which means I will only buy in at around $0.70. This may not happen but can afford to wait. My advice to people waiting on sideline, you too should not be rushed into anything. Take your time and be patient. chengwh1      ( Date: 21-Jul-2017 17:07) Posted: Yeah,... somehow, I think so too,...  what date is being  targetted for the stabilization support to be withdrawn

 

No sure how long more the backers are allowed to buy in to stabilize the stock but there is a time limit. The hope is that by then, the punters who borrowed from banks to subscribed would have been weeded out Otherwise there will be more drop in price.

Smart investors will do well to stay on side-line as dividend to be earned can be a lot better than the 5.4% promised at IPO price. 

Sorry for holders but my personal target is to aim for 6 % dividend. Which means I will only buy in at around $0.70. This may not happen but can afford to wait.

My advice to people waiting on sideline, you too should not be rushed into anything. Take your time and be patient.

chengwh1      ( Date: 21-Jul-2017 17:07) Posted: Yeah,... somehow, I think so too,...  what date is being  targetted for the stabilization support to be withdrawn ? VINUASAM      ( Date: 21-Jul-2017 15:35) Posted: The volumes remain very high even on the 3rd day. Looks like the prices will come down once the stabilization support is withdrawn..

 

Yeah,... somehow, I think so too,...  what date is being  targetted for the stabilization support to be withdrawn ?

VINUASAM      ( Date: 21-Jul-2017 15:35) Posted: The volumes remain very high even on the 3rd day. Looks like the prices will come down once the stabilization support is withdrawn..

 

http://www.channelnewsasia.com/news/singapore/singtel-launches-800mbps-mobile-data-speeds-at-selected-9051388