| Latest Forum Topics / Seatrium Last:0.091 -- |
 Post Reply
|
|
SembCorp Marine- The new Frontier.
|
|||||
|
TraderBen
Supreme |
01-Jul-2021 15:40
|
||||
|
x 0
x 0 Alert Admin |
As invesstors of course we all want to see the company do well.. but in this case.. its blood sucking going on.. forcing miniority SH to pay off its debts..or face dilution. and will never recover back the money lost.. look at those bought $1.50 and above.. forked out money for the 1st rights issue.. and price is not even trading above the issue price and here comes another rights issue at such a low price for the KILL.. they could have easily set the rights price at 16 cents 1 for 2 and will get the same amount of money. end of the day, its the T who wants to force the hands of miniority and take control of the whole situation. by making an lowball offer to take the company private in the near future.. i bite the bullet and cut loss and will focus on other companies rather than this sinking ship..however, to those still on board.. money is urs.. u can deicide..
|
||||
| Useful To Me Not Useful To Me | |||||
|
Lobster
Elite |
01-Jul-2021 15:40
Yells: "Even Adam Khoo believes in the Black Market!" |
||||
|
x 0
x 0 Alert Admin |
Hahaha.4 pm we might see a battle of Iwa Jima type. See who dig in more!! | ||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
worstt
Member |
01-Jul-2021 15:33
|
||||
|
x 1
x 0 Alert Admin |
Yeap need to look for him. When the share price up, keep on posting how accurate is his view, sharing the daily buy back programme, and deny others statement who had a negative view on SMM at all cost. Now when the share price crash like this, he also crash and hide.
|
||||
| Useful To Me Not Useful To Me | |||||
|
Mike1018
Member |
01-Jul-2021 15:25
|
||||
|
x 0
x 0 Alert Admin |
Better check with bro better | ||||
| Useful To Me Not Useful To Me | |||||
|
pkli899
Supreme |
01-Jul-2021 15:00
|
||||
|
x 0
x 0 Alert Admin |
c group is those not vested but think company got potential. Hope price drop to super low and they can pick up cheap cheap. Anyway, I still believe the company will survive.
|
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
moneyspinner
Veteran |
01-Jul-2021 14:54
|
||||
|
x 0
x 0 Alert Admin |
If you have confidence in the new merged entity, you can always subscribe for excess rights at 8 cts.
|
||||
| Useful To Me Not Useful To Me | |||||
|
Adrianinsing
Elite |
01-Jul-2021 14:51
|
||||
|
x 0
x 0 Alert Admin |
C) third group - those who don' t care
|
||||
| Useful To Me Not Useful To Me | |||||
|
TigerPlay
Master |
01-Jul-2021 14:48
|
||||
|
x 0
x 0 Alert Admin |
my simple take of existing Scm SH is that there are 2 possible group a) those that got no confidence in the merger that come with the right and dun think the new merged entity can do well. Believe that the share will continue to fall, even if there is a possibility of merged new entity, even falling to 4cts or so, partly due to the diluted share b) those die heart or believer that the future is bright even with the issuance of right, they will fully or partially sub for it. tomorrow willl be better believer that got faith new entity will be bigger, stronger and more competitive Group A would be in a panic state, have sold all or almost all by now, from 15 over cts till now 12cts plus or even 11.9cts yesterday. so now hoping it goes below 8cts and possibly they may buy back the share or just avoid totally Group B would be still around, and saying good thing about the counter, day after day, hoping something good come out, be it buy over, new projects etc So which group you in? of is there another group? c,d, e ?? |
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
Isolator
Supreme |
01-Jul-2021 14:13
|
||||
|
x 0
x 0 Alert Admin |
Long now to enjoy... | ||||
| Useful To Me Not Useful To Me | |||||
|
Abe2021
Veteran |
01-Jul-2021 14:13
|
||||
|
x 0
x 0 Alert Admin |
Buyers have been waiting. Most of the sellers would have sold in the last 4 days. There will be remnant that will still hold on but will have lesser and lesser. Indicators show the price has been oversold. More news going to be released.
|
||||
| Useful To Me Not Useful To Me | |||||
|
1c2e3s
Veteran |
01-Jul-2021 13:59
|
||||
|
x 0
x 0 Alert Admin |
Sembcorp Marine Ltd (SGX: S51), or SMM, will be raising a total of S$1.5 billion through a rights issue to shore up its balance sheet. If you think this news sounds familiar, it&rsquo s because the oil rig giant had announced a massive rights issue almost exactly a year ago. Back then, SMM was going through a demerger with its then-parent, Sembcorp Industries Limited (SGX: U96), or SCI, in a complex exercise that was intended to separate the two companies into distinct entities. As part of the move, SMM issued five rights shares for every one share that investors held, at an issue price of S$0.20. The whole exercise was meant to raise S$2.1 billion but the group only received S$0.6 billion in net proceeds. The remaining S$1.5 billion involves the conversion of SMM&rsquo s debt into equity with no cash effect. With this second rights issue, let&rsquo s delve into the implications for investors and try to figure out the fate of the group. Details of the rights issueThe current rights issue is renounceable and involves the issuance of three rights shares for every two shares held, at a rights issue price of S$0.08. Temasek Holdings has agreed to subscribe to two-thirds of the rights issue, with DBS Group (SGX: D05) underwriting the remaining one-third. The money will be used to fund working capital and shore up SMM&rsquo s balance sheet. Prolonged industry downturnThe oil and gas industry has been in an extended slump since 2015. Just as the industry was on the road to recovery, the COVID-19 pandemic came along, resulting in a second sharp oil price crash last year. SMM also faced a severe labour crunch due to restrictions put in place for foreign workers to control the spread of the disease. This manpower shortage resulted in delays in project progress and completion, thereby exacerbating the cash flow situation faced by the group. To make matters worse, supply chain disruptions also led to increased costs for project continuation and completion, further adding to SMM&rsquo s woes. The good news is that the group still maintains an order book of around S$1.9 billion that will progressively be recognised as the downturn abates. Improving its financial metricsThe rights issue will help to improve SMM&rsquo s financial metrics and give it some breathing room to carry out its contractual obligations. Net gearing is expected to reduce from 0.75 times to 0.25 times, while the cash balance is projected to jump from S$800 million to S$2.3 billion post-rights. With this cash infusion, SMM will meet all its operational funding needs till the end of 2022 while also soothing lenders&rsquo nerves. Pivoting to renewables and clean energyAs part of SMM&rsquo s business transformation efforts. the management intends to pivot the group towards renewables and clean energy. The goal is to rely less on fossil fuels and position its portfolio for the future. Already, the group has won contracts with wind farm operators and it intends to further diversify away from drilling-focused activities and into electrification, gas value chains and ocean living, to name a few. SMM is following in the footsteps of its ex-parent SCI as the latter unveiled its new strategic direction early this month. A potential white knightTo be sure, there&rsquo s good news in the form of a potential white knight rushing in to rescue the beleaguered SMM. Along with its rights issue, SMM had also announced that it was exploring a potential combination with Keppel Corporation Limited&rsquo s (SGX: BN4) offshore and marine division. The blue-chip conglomerate is well-capitalised and by stepping in, is offering a lifeline to help strengthen SMM&rsquo s market position and inject confidence into both lenders and customers. Note, though, that there is no assurance that a deal can be hammered out, and the process to work out an agreement may take several months. Get Smart: Severe dilutionAn investor who was invested in SMM since last June would face severe dilution with two successive rounds of rights issues. If we assume that an investor had owned 2,000 shares of SMM before the two rights issues, these shares would have been worth around S$600 at a share price of S$0.30 last June. After the first round, he would have to cough up S$2,000 to subscribe for 10,000 rights shares priced at S$0.20 each. Assuming this was paid in full, he would have ended up with 12,000 shares of SMM. For this round of rights, he will be entitled to 18,000 rights shares and will have to fork out another S$1,440 to subscribe for them. With an initial investment value of S$600, a total of S$3,440 needs to be paid to increase his shareholdings from 2,000 to 30,000 shares. The amount is a hefty sum to pay as it&rsquo s nearly six times your original investment. You do have an option not to accept your proportional entitlement of the rights, though. By doing so, you will not have to cough up additional money but you will end up suffering severe dilution. With recovery still some years away, SMM may not enjoy a respite from its troubles anytime soon. |
||||
| Useful To Me Not Useful To Me | |||||
|
Calmroom
Master |
01-Jul-2021 13:45
|
||||
|
x 0
x 0 Alert Admin |
Hmm... The double sell walls at 12.4c and 12.5c are almost identical in volumes. Odd. Look a bit fishy to me. Wonder if the same 12.2c sellers have put them up because scared the share price might cross 12.5c? 
|
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
pkli899
Supreme |
01-Jul-2021 13:43
|
||||
|
x 0
x 0 Alert Admin |
Your point is valid.  TH always want to show they are caring.....give free masks, sanitizer & oximeter, etc. They wil end up with high % at cheap cheap price. So they can afford to offer a good takeover price for the balance free float without really spending much. Who knows, somehow free float still stay at 10% or more after the exercise. By then share price will surely be much higher and will look very good on paper for them.
|
||||
| Useful To Me Not Useful To Me | |||||
|
Isolator
Supreme |
01-Jul-2021 13:26
|
||||
|
x 0
x 0 Alert Admin |
Long to enjoy... ready to take off.. | ||||
| Useful To Me Not Useful To Me | |||||
|
MANFREDTMK
Master |
01-Jul-2021 13:23
|
||||
|
x 0
x 0 Alert Admin |
I don't think SM is that bad given the turnaround in both industries. Even if it's so, when the tide come in, even broken sampans will float.
|
||||
| Useful To Me Not Useful To Me | |||||
|
Calmroom
Master |
01-Jul-2021 13:17
|
||||
|
x 0
x 0 Alert Admin |
Wow. Now more than 70m shares traded at 12.2c but can see these sellers are still not giving up.
|
||||
| Useful To Me Not Useful To Me | |||||
|
MANFREDTMK
Master |
01-Jul-2021 13:13
|
||||
|
x 0
x 0 Alert Admin |
No lah, I am only a layman. Like everyone, I will just subscribe to the Rights issue. Then just hope for BB to save us.
|
||||
| Useful To Me Not Useful To Me | |||||
|
worstt
Member |
01-Jul-2021 12:55
|
||||
|
x 0
x 0 Alert Admin |
I' m waiting below 0.08 after X rights... There will be alot people think that they are lucky to buy cheap ticket at 0.1, and subscribe right at 0.08... attempting to earn fast money..
|
||||
| Useful To Me Not Useful To Me | |||||
|
gravity8888
Supreme |
01-Jul-2021 12:51
|
||||
|
x 0
x 0 Alert Admin |
I waiting at 0.1 if it ever get there ... Then subscribe for the rights | ||||
| Useful To Me Not Useful To Me | |||||
|
Isolator
Supreme |
01-Jul-2021 12:49
|
||||
|
x 0
x 0 Alert Admin |
Long to enjoy... | ||||
| Useful To Me Not Useful To Me | |||||
