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QuestionsCategory: Financials QuadrantFinancial Quadrant- Convertible Notes & Other
Ka Fatt Chan asked 4 months ago

Dear Victor,
I have the following queries which seek your advice and views:

  1. What is the disadvantage and risk in investing foreign company- Israel that are listed in US stock exchange? Did fifth person carried any such investment under the portfolio? 
  2. I need guidance with regard to convertible notes issued by a company A. What is the pro and con? What is the metric to apply if to invest in such company. I have attached the notes from their reports for your reference.

Thank you & Regards,
Ka Fatt
 

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2 Answers
Victor Chng answered 4 months ago

Hi Ka Fatt,
 

  1. When it comes to investing overseas market outside of your home country, there is always country risk as will not be 100% sure whether how the business actually fare over there. – We have not invest in any Israel company. 
  2. Convertible notes are debt that will cause future dilution to the outstanding shares. You just have to add it into your debt calculation. On top of that, you have to use diluted shares (diluted shares account for future dilution) to calculate the EPS. 
Ka Fatt Chan answered 4 months ago

thx Victor.
 
It is similar case like SIA
 

Victor Chng replied 4 months ago

Welcome Ka Fatt :)

Yes it is same as SIA