HYFLUX STOCK: LESSON FOR INVESTORS
Dear readers, as you would have known by now, Hyflux stock has been suspended for reasons which I would not repeat here as these are well-publicized in the news. To be frank, I am not too surprised at the development of Hyflux since I have already noticed that this company has quite a lot of debt: $1.56 billion for the latest figure. Hyflux, in my opinion seems to be a highly-leveraged company, taking on quite some high debts to fund its ambitious growth. In light of the high debt, I have not invested in Hyflux before.
After the episode of Ezion and similar episodes of highly-leveraged energy companies, Hyflux episode is again a reminder to investors that the fundamentals of companies is really a pre-requisite to a good investment. It is unwise to chase some “growth stocks” if these growth are fueled by unnecessary high debts.
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After the episode of Ezion and similar episodes of highly-leveraged energy companies, Hyflux episode is again a reminder to investors that the fundamentals of companies is really a pre-requisite to a good investment. It is unwise to chase some “growth stocks” if these growth are fueled by unnecessary high debts.
Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.