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Bennytan23 Senior	19-May-2020 15:31        Bennytan23 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Point 1: disagree. Based on day by day. For eg today. If i want cheaper, obviously i buy rights and convert to shares. A) 60cents + $3= 3.60. 1000 shares maybe cost me $25 fees and charges. (Total 3625) B) 3.75 x 1000 shares also cost me $25. (Total 3775) So which one is cheaper? Of cos we dunno if the price will go up or down. Based on today, im saying choose A is wiser. Point 2: disagree. what do u mean cant short rights? SIA R can be short or long. Point 3: disagree. I gave an example of price shooting up to $4 on 22nd May. Time frame that u cant trade is from now till 7th june for the SIAR converted shares. And yes.. prices can shoot up during this time. And once ppl owns the shares on 8th June, expect to have ppl selling and prices to drop. (Correct me if my view is wrong but anw, its my opinion. We can come back to this point to see if prices will drop on 8th June.) Point 4: agree. SIA R shares will expire on 21st. Dont hold on to it if u have no intention to exercise. So.. using this mindset.. we need to react and find an opty to ?LONG/SHORT? tmr or on thurs. Hehehe 🤓 xxboaxx      ( Date: 19-May-2020 15:06) Posted: 1) i don' t think its a trick. arbitrage only works if you can do it now but you cant since the rights share will only trade on 8th june. no1 wil know the share price when the rights shares are trading.  May be even lower than the rights price you bought. 2) I believe most of the buying of mother shares are due to shorts covering since you cant short the rights.  3)  "   so cannot sell during 21st may to 8th June. (what if shares shoot up to 4 on 22nd May? u cant sell cos u dont own any shares until 8June)" " if this is the case means you would be better off buying and converting the rights unless that shoot up is temporarily.  4) buying the rights for trading is very risky as you might be left off holding the rights which if you do not intend to convert, it has no value unlike the mother shares where you become a long if the price drop. Bennytan23      ( Date: 19-May-2020 15:00) Posted: 1. becos some ppl dunno this trick.  2. excess rights converted shares will be avail to u only on 8th of June(if i rmb correctly), so cannot sell during 21st may to 8th June. (what if shares shoot up to 4 on 22nd May? u cant sell cos u dont own any shares until 8June) 3. Depends on your broker fees etc.. see if its worth it. if u buy little bit like 100 or 500 shares, no difference. since min charge is gonna be 25/trade. big amt then thats where u see the money.  4. any expert wanna share ur views? heh
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normalcy Member	19-May-2020 15:30        normalcy About Contact  Quote this Post!
x 0   x 0  Alert Admin	Thanks bro for your advice. But will the new converted shares @ $4.84 per share cause dilution? newbieliu      ( Date: 19-May-2020 15:21) Posted: Yes, they will convert to shares for you lol. Provided the share price is too dampened. 10 years many things could happen and by right it is a new economy cycle after crisis, like 1997, 2008 Lehman etc. they all take about 10 years. Consider you are young enough now. u will live through this 10 years BUT if you are too young u cant buy much too lol (to some extent) normalcy      ( Date: 19-May-2020 15:16) Posted: Hi all, after 10 years the MCBs will convert @ $4.84 per share. Anyone knows where these shares will come from? Will they just be created out of nowhere and cause further dilution?
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newbieliu Elite	19-May-2020 15:24        newbieliu About Contact  Quote this Post!
x 0   x 0  Alert Admin	LOL if it drop by 50% i will take ur surname LOL from 21 May to 7 June 2020 xxboaxx      ( Date: 19-May-2020 15:19) Posted: that 14 cents include alot of risk within the 22-8 which you cannot do anything even it the shares drop 50% from current price. newbieliu      ( Date: 19-May-2020 15:11) Posted: But there is a huge buffer of 14 cents now . Unless u r so unlucky then bo bian. already.  Even then ur cost price of the share is much lower than the orignal holders before EX right
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AhLiang Elite	19-May-2020 15:23        AhLiang About Contact  Quote this Post!
x 0   x 0  Alert Admin	My guess why there is a gap between the mother shares and the Rights is that it was intended so that retailers will punt the Rights although many in reality do not have the funds to subscribe to the new shares. Many have already lost money by playing with the BBs. There will be more bloodshed the next 2 days.
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newbieliu Elite	19-May-2020 15:21        newbieliu About Contact  Quote this Post!
x 0   x 0  Alert Admin	Yes, they will convert to shares for you lol. Provided the share price is too dampened. 10 years many things could happen and by right it is a new economy cycle after crisis, like 1997, 2008 Lehman etc. they all take about 10 years. Consider you are young enough now. u will live through this 10 years BUT if you are too young u cant buy much too lol (to some extent) normalcy      ( Date: 19-May-2020 15:16) Posted: Hi all, after 10 years the MCBs will convert @ $4.84 per share. Anyone knows where these shares will come from? Will they just be created out of nowhere and cause further dilution?
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xxboaxx Member	19-May-2020 15:19        xxboaxx About Contact  Quote this Post!
x 0   x 0  Alert Admin	that 14 cents include alot of risk within the 22-8 which you cannot do anything even it the shares drop 50% from current price. newbieliu      ( Date: 19-May-2020 15:11) Posted: But there is a huge buffer of 14 cents now . Unless u r so unlucky then bo bian. already.  Even then ur cost price of the share is much lower than the orignal holders before EX right . xxboaxx      ( Date: 19-May-2020 15:06) Posted: 1) i don' t think its a trick. arbitrage only works if you can do it now but you cant since the rights share will only trade on 8th june. no1 wil know the share price when the rights shares are trading.  May be even lower than the rights price you bought. 2) I believe most of the buying of mother shares are due to shorts covering since you cant short the rights.  3)  "   so cannot sell during 21st may to 8th June. (what if shares shoot up to 4 on 22nd May? u cant sell cos u dont own any shares until 8June)" " if this is the case means you would be better off buying and converting the rights unless that shoot up is temporarily.  4) buying the rights for trading is very risky as you might be left off holding the rights which if you do not intend to convert, it has no value unlike the mother shares where you become a long if the price drop
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Huat1368 Veteran	19-May-2020 15:16        Huat1368 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	How was the rights issue price of S$3.00 per share determined? Is the discount in line with market? The Rights Shares issue price of S$3.00 per Rights Share represents a discount of ~53.8% to the last transacted price of S$6.50 on 25 March 2020, being the last trading day on which trades were done on the Shares prior to our announcement of the Rights Issue. It also represents a discount of ~31.8% to the theoretical ex-rights price (TERP) of S$4.40 per Share, which is the theoretical market price of each Share based on the last transacted price of S$6.50 on 25 March 2020 and assuming the completion of the Rights Issue. The issue price and discounts were determined after considering precedent rights offerings of SGX-listed issuers and are generally in line with market precedents. The key consideration was to provide an opportunity and invitation to shareholders to join this Rights Share issuance at an appropriate discount so that you may all participate in the future growth of the Company as we emerge from this downturn in at least the proportion you held in the Company prior to it.  From SGX... earthdragon      ( Date: 19-May-2020 15:04) Posted: Hi does it mean, by theory, after dilution, shuold be about 4.4 ?? Huat1368      ( Date: 19-May-2020 15:02) Posted: Pre-right was at $5.9 and Post-right 1st day was at ~$4.20 - 5+ and now $3.75 is cheaper. Fortunately, I hold on my horses, didn' t pay at $4.40. Now, I am planning to buy, but do not know what is the better option..
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normalcy Member	19-May-2020 15:16        normalcy About Contact  Quote this Post!
x 0   x 0  Alert Admin	Hi all, after 10 years the MCBs will convert @ $4.84 per share. Anyone knows where these shares will come from? Will they just be created out of nowhere and cause further dilution?
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limcs84 Member	19-May-2020 15:15        limcs84 About Contact  Quote this Post!
x 0   x 0  Alert Admin	The government is subsidising their 75% of their salary till the end of the year and subject to further extension if required. The government holding whatever they can to make the airlines fly high again.  Goldfinger      ( Date: 19-May-2020 14:35) Posted: The subsidy by the Government for highly paid pilots is only a fraction of their salaries.  Time to let some of them go, or to significantly cut pay. If they do not wish to have pay cuts - they are free to send in their resumes to work for other airlines.  Times have changed - SIA Pilots are no more the top of the professional echelon.  They are now beneficiaries of what is effectively a Government bailout.  Air travel demand is plummetting and many pilots retrenched from Air Canada and Emirates will be willing to work for much less now. limcs84      ( Date: 19-May-2020 14:28) Posted: The problem is that the pilots and staff are not being laid off. They still taking almost the same pay and moreover, it is still subidised by the government.
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newbieliu Elite	19-May-2020 15:15        newbieliu About Contact  Quote this Post!
x 0   x 0  Alert Admin	By theory, it should not be so low now LOL uiop1223      ( Date: 19-May-2020 15:14) Posted: Mkt dont go by theory 🤣 earthdragon      ( Date: 19-May-2020 15:04) Posted: Hi does it mean, by theory, after dilution, shuold be about 4.4 ?
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uiop1223 Supreme	19-May-2020 15:14        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Mkt dont go by theory 🤣 earthdragon      ( Date: 19-May-2020 15:04) Posted: Hi does it mean, by theory, after dilution, shuold be about 4.4 ?? Huat1368      ( Date: 19-May-2020 15:02) Posted: Pre-right was at $5.9 and Post-right 1st day was at ~$4.20 - 5+ and now $3.75 is cheaper. Fortunately, I hold on my horses, didn' t pay at $4.40. Now, I am planning to buy, but do not know what is the better option..
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newbieliu Elite	19-May-2020 15:11        newbieliu About Contact  Quote this Post!
x 0   x 0  Alert Admin	But there is a huge buffer of 14 cents now . Unless u r so unlucky then bo bian. already.  Even then ur cost price of the share is much lower than the orignal holders before EX right . xxboaxx      ( Date: 19-May-2020 15:06) Posted: 1) i don' t think its a trick. arbitrage only works if you can do it now but you cant since the rights share will only trade on 8th june. no1 wil know the share price when the rights shares are trading.  May be even lower than the rights price you bought. 2) I believe most of the buying of mother shares are due to shorts covering since you cant short the rights.  3)  "   so cannot sell during 21st may to 8th June. (what if shares shoot up to 4 on 22nd May? u cant sell cos u dont own any shares until 8June)" " if this is the case means you would be better off buying and converting the rights unless that shoot up is temporarily.  4) buying the rights for trading is very risky as you might be left off holding the rights which if you do not intend to convert, it has no value unlike the mother shares where you become a long if the price drop. Bennytan23      ( Date: 19-May-2020 15:00) Posted: 1. becos some ppl dunno this trick.  2. excess rights converted shares will be avail to u only on 8th of June(if i rmb correctly), so cannot sell during 21st may to 8th June. (what if shares shoot up to 4 on 22nd May? u cant sell cos u dont own any shares until 8June) 3. Depends on your broker fees etc.. see if its worth it. if u buy little bit like 100 or 500 shares, no difference. since min charge is gonna be 25/trade. big amt then thats where u see the money.  4. any expert wanna share ur views? heh
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xxboaxx Member	19-May-2020 15:06        xxboaxx About Contact  Quote this Post!
x 0   x 0  Alert Admin	1) i don' t think its a trick. arbitrage only works if you can do it now but you cant since the rights share will only trade on 8th june. no1 wil know the share price when the rights shares are trading.  May be even lower than the rights price you bought. 2) I believe most of the buying of mother shares are due to shorts covering since you cant short the rights.  3)  "   so cannot sell during 21st may to 8th June. (what if shares shoot up to 4 on 22nd May? u cant sell cos u dont own any shares until 8June)" " if this is the case means you would be better off buying and converting the rights unless that shoot up is temporarily.  4) buying the rights for trading is very risky as you might be left off holding the rights which if you do not intend to convert, it has no value unlike the mother shares where you become a long if the price drop. Bennytan23      ( Date: 19-May-2020 15:00) Posted: 1. becos some ppl dunno this trick.  2. excess rights converted shares will be avail to u only on 8th of June(if i rmb correctly), so cannot sell during 21st may to 8th June. (what if shares shoot up to 4 on 22nd May? u cant sell cos u dont own any shares until 8June) 3. Depends on your broker fees etc.. see if its worth it. if u buy little bit like 100 or 500 shares, no difference. since min charge is gonna be 25/trade. big amt then thats where u see the money.  4. any expert wanna share ur views? hehe Voze91      ( Date: 19-May-2020 14:47) Posted: Hi all, junior question  here. What is the reason behind why there is room for arbitrage?  Mother Share : 3.75 Right Issue-: 3 + 0.62 = 3.62 (which is lesser than 3.75) So why are people still buying the mother shares given that the rights issue allow you to get it at a much cheaper price? Am I missing out some cost here?
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AhLiang Elite	19-May-2020 15:05        AhLiang About Contact  Quote this Post!
x 0   x 0  Alert Admin	Because the opponents are the BBs. They get their way. Yesterday they created fear and collected cheap. This morning the kia-su retailers fomo bought up and BBs sold to them. Tomorrow is D-2, next day D-1, they only need to let it float. Retailers will have to sell and BBs will buy cheap. Jeanny      ( Date: 19-May-2020 14:50) Posted: What is the reason for the SIA R to fall further tmr or thurs? Won' t there be short-covering to push up the R price?  Bennytan23      ( Date: 19-May-2020 14:42) Posted: Buy SIA R at cheaper price tmr or on Thurs. then pay $3/share to exercise the rights. Cheaper tt way
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earthdragon Senior	19-May-2020 15:04        earthdragon About Contact  Quote this Post!
x 0   x 0  Alert Admin	Hi does it mean, by theory, after dilution, shuold be about 4.4 ?? Huat1368      ( Date: 19-May-2020 15:02) Posted: Pre-right was at $5.9 and Post-right 1st day was at ~$4.20 - 5+ and now $3.75 is cheaper. Fortunately, I hold on my horses, didn' t pay at $4.40. Now, I am planning to buy, but do not know what is the better option... Bennytan23      ( Date: 19-May-2020 14:42) Posted: Buy SIA R at cheaper price tmr or on Thurs. then pay $3/share to exercise the rights. Cheaper tt way
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uiop1223 Supreme	19-May-2020 15:03        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	My advice is if u want to support SIA, go buy their air tickets Use your money to buy other stocks better. earthdragon      ( Date: 19-May-2020 15:02) Posted: I am also interested to buy SIA, but trying to find out the reasonable price after diluted. Is the mother share , say 3.75 has factored in the diluted effect ??? Anyone could share your experience, thanks  uiop1223      ( Date: 19-May-2020 14:41) Posted: Purchase of aircraft was brought up by SIAS but brushed off by SIA mtgm. See pt 3: The rationale of the rights issue was stated as to ?strengthen the Company?s balance sheet and liquidity position? (page 28) and ?to meet its ongoing financial commitments, weathering the severe disruption to global air travel caused by the COVID-19 pandemic? (page 28). However, a significant portion of the funds, 38% or S$3.3 billion, raised is for capital expenditure (page 29). Why is there such a large percentage of the funds raised committed to capital expenditure given the stated rationale of strengthening SIA?s cashflow and balance sheet? If the funds raised are purely for cashflow and balance sheet reasons, does SIA really need to proceed with such a sizeable rights issue given its substantial impact on share dilution and share price? The funds that we receive from the Rights Issue will allow us to address our cashflow requirements for near-term operations, committed capital expenditure for aircraft purchases and other fixed commitments which include debt and contractual repayments. The committed capital expenditure for aircraft purchases relate to orders placed in the past. The rationale for these purchases remains valid even under the present scenario given that it would enable SIA to proceed with its adoption of new-generation aircraft, both as replacement for existing fleet and for growth, as these new generation aircraft will not only provide an enhanced travel experience to our customers but also, provide better operating efficiency and lower emissions. At the same time, we have also deferred non-essential expenditure projects and imposed tight controls on discretionary expenditure. We are also in commercial negotiations with the aircraft manufacturers to try and refine our delivery stream in view of the prevailing market conditions, balancing considerations that our fleet renewal programme is an important part of the Group?s strategy for long term sustainability and industry leadership. Furthermore, up to S$6.2 billion of Additional MCBs may be issued within a 15-month period after the EGM, which will provide us with additional liquidity if this crisis extends for a prolonged period. This will also provide us with the resources to capitalise on any opportunities that may arise following the abatement of the COVID-19 pandemic from a position of strength, and position us for growth as soon as the ongoing crisis resolves. https://links.sgx.com/FileOpen/Responses%20to%20SIAS%20240420%20.ashx?App=Announcement&FileID=60793
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Bennytan23 Senior	19-May-2020 15:03        Bennytan23 About Contact  Quote this Post!
x 0   x 0  Alert Admin	lets end the trading day as i mentioned.  and get ready some pocorns for tmr' s good show!! :)  Bennytan23      ( Date: 19-May-2020 13:10) Posted: High chance end flat at 0.6 (+/- 5%) try not to LONG SIA R tmr or thurs. It will expire on 21st May. after tt only mother share SIA will be trading. Ur SIA R shares will be worthless if u dont intend to exercise to convert to SIA ($3/share) by 28th May. bormon      ( Date: 19-May-2020 13:04) Posted: once 0.6 breaks.. freefall
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Huat1368 Veteran	19-May-2020 15:02        Huat1368 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Pre-right was at $5.9 and Post-right 1st day was at ~$4.20 - 5+ and now $3.75 is cheaper. Fortunately, I hold on my horses, didn' t pay at $4.40. Now, I am planning to buy, but do not know what is the better option... Bennytan23      ( Date: 19-May-2020 14:42) Posted: Buy SIA R at cheaper price tmr or on Thurs. then pay $3/share to exercise the rights. Cheaper tt way. Huat1368      ( Date: 19-May-2020 14:40) Posted: Honestly speaking, this is the first time during my lifetime seeing SIA stock price drops to $3.75. Too good to be true....Scoop up or Wait???
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uiop1223 Supreme	19-May-2020 15:02        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Why will there be short covering? Jeanny      ( Date: 19-May-2020 14:50) Posted: What is the reason for the SIA R to fall further tmr or thurs? Won' t there be short-covering to push up the R price?  Bennytan23      ( Date: 19-May-2020 14:42) Posted: Buy SIA R at cheaper price tmr or on Thurs. then pay $3/share to exercise the rights. Cheaper tt way
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earthdragon Senior	19-May-2020 15:02        earthdragon About Contact  Quote this Post!
x 0   x 0  Alert Admin	I am also interested to buy SIA, but trying to find out the reasonable price after diluted. Is the mother share , say 3.75 has factored in the diluted effect ??? Anyone could share your experience, thanks  uiop1223      ( Date: 19-May-2020 14:41) Posted: Purchase of aircraft was brought up by SIAS but brushed off by SIA mtgm. See pt 3: The rationale of the rights issue was stated as to ?strengthen the Company?s balance sheet and liquidity position? (page 28) and ?to meet its ongoing financial commitments, weathering the severe disruption to global air travel caused by the COVID-19 pandemic? (page 28). However, a significant portion of the funds, 38% or S$3.3 billion, raised is for capital expenditure (page 29). Why is there such a large percentage of the funds raised committed to capital expenditure given the stated rationale of strengthening SIA?s cashflow and balance sheet? If the funds raised are purely for cashflow and balance sheet reasons, does SIA really need to proceed with such a sizeable rights issue given its substantial impact on share dilution and share price? The funds that we receive from the Rights Issue will allow us to address our cashflow requirements for near-term operations, committed capital expenditure for aircraft purchases and other fixed commitments which include debt and contractual repayments. The committed capital expenditure for aircraft purchases relate to orders placed in the past. The rationale for these purchases remains valid even under the present scenario given that it would enable SIA to proceed with its adoption of new-generation aircraft, both as replacement for existing fleet and for growth, as these new generation aircraft will not only provide an enhanced travel experience to our customers but also, provide better operating efficiency and lower emissions. At the same time, we have also deferred non-essential expenditure projects and imposed tight controls on discretionary expenditure. We are also in commercial negotiations with the aircraft manufacturers to try and refine our delivery stream in view of the prevailing market conditions, balancing considerations that our fleet renewal programme is an important part of the Group?s strategy for long term sustainability and industry leadership. Furthermore, up to S$6.2 billion of Additional MCBs may be issued within a 15-month period after the EGM, which will provide us with additional liquidity if this crisis extends for a prolonged period. This will also provide us with the resources to capitalise on any opportunities that may arise following the abatement of the COVID-19 pandemic from a position of strength, and position us for growth as soon as the ongoing crisis resolves. https://links.sgx.com/FileOpen/Responses%20to%20SIAS%20240420%20.ashx?App=Announcement&FileID=607937 Goldfinger      ( Date: 19-May-2020 14:26) Posted: What SIA needs to do now is to re-instill market confidence to show that it is trying its best to return to profitability - and this includes holding off on new aircraft purchases and retrenching a large chunk of its redundant staff.  You cannot pay pilots SGD20,000 or more a month and they are not flying for months and months - can you???
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