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Why I Ask My Wife to Keep her Apac IPO Shares

Apac Realty IPO - Initial public offering

“Couple of days before APAC Realty IPO”

After writing the article on APAC Realty IPO, i applied for the shares and told my wife to do the same.

The funny conversation goes like this:

Wife: “Aiyah, I don’t wish to waste $2 again.”

Me: “Wah lau, you can make it back multifold if you just get one Good IPO that increases in price during debut. And the odds are much better than Toto or 4D too.”

Wife: “Sure good or not?”

Me: “Ya, your husband is writing about the IPO now. Expert by your side but you don’t want to utilize…”

Wife: “Haha… ok then, help me apply ok? I go sleep already, good night.”

Fast forward to the day of reckoning

I got zero shares and my wife got 2,000 shares @ $0.66 each. (Lady luck has never been on my side when it comes to applying for IPOs).

And as of 6th Oct Friday, APAC Realty (SGX: CLN) is trading at $0.79 each, up around 19% from the IPO price. Not bad for just a week of ‘investing’!

So… the next popular question sitting on a lot of people’s minds would be:

Q: “Should i continue to hold on or sell the shares?”

The answer is: it depends.

To answer the question, you need to look at 2 things:

  1. Your Intention of Buying the IPO shares
  2. The company fundamentals and/or growth prospects

In this case, my wife wanted to flip the shares for some quick gains (who doesn’t want that!) since she has zero knowledge of the company’s fundamentals. But on the other hand, she wants to sell at the highest price possible to maximize her short term profits.

Perform Due Diligence

The end result? I told my wife to hold on to the IPO shares after doing some homework and due diligence:

  • The sentiment is turning – just look at the En-Bloc fever! The comeback of en-bloc usually means developers like Capitaland or City Developments are confident of the housing market in Singapore going forward since they will re-develop and resell these houses at even higher prices.
    http://www.businesstimes.com.sg/infographics/en-bloc-fever
    http://www.straitstimes.com/singapore/housing/collective-sale-fever-how-much-longer-will-it-last
  • URA Index showing signs of a bottoming phase.
    https://www.ura.gov.sg/uol/media-room/news/2017/Oct/pr17-65URA Private Property Index
  • Jack Chua, group CEO, ERA, is also upbeat on how APAC Realty is like a proxy for the initial property market run and leaves plenty of moolah for the stock investors. In a nutshell, you can ride APAC Realty for the upswing in property sales going forward.
    Check out a short interview with him below:
    https://www.cnbc.com/video/2017/09/27/a-good-time-to-return-to-the-stock-market-for-this-real-estate-broker.html

 

What about you? Would you buy or sell the shares? Let me know via email @ smallcapasia@gmail.com!

SmallCapAsia.com is a website focused primarily on undervalued gems that can generate Big, Fat Returns for investors. Our Slogan is simple: Start Small, Win Big!

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