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uiop1223 Supreme	31-Mar-2020 15:08        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	I think mkt is confuse also. Hence price is falling now
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bukit-kermit Member	31-Mar-2020 15:02        bukit-kermit About Contact  Quote this Post!
x 0   x 0  Alert Admin	Correction to the maths: $4.20 is computed from  [(2)*($6)+(3)*($3)]/5 Add-on to topic: If after right issue date, the price of each share in market is stablilised at $3/share, then the existing holder had technically made a direct lost of 50% from their existing shares, irrelevant to whether they have purchase the new shares.... If market value is stablised at $6, the shares of existing holder are not affected, the new share injected will enjoy a 100% increased in value. But again, I emphasize my impression, how did the new share quantity arise?
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bukit-kermit Member	31-Mar-2020 14:49        bukit-kermit About Contact  Quote this Post!
x 0   x 0  Alert Admin	Need advice from experts, as I am rather confused by this rights issue activity. My opinion is it gives me the impression that SIA is printing money (share) in this event, but I might be mistaken. Why I feel how I feel: Assume there are in existing total 2,000,000 shares (arbitrary) that is currently worth $6 dollars (arbitrary again). Thus, the total worth is $12,000,000, assuming again zero price fluctuation until the right issue date. Let' s suppose 50% of the shares are owned by public (you and me) and 50% by organisation. Thus $6,000,000 worth of share (qty 1,000,000) in market, and the rest in organisation. At the date of rights issue, existing shareholders can make a purchase of 3 extra shares ($3 each) for every 2 shares they have, meaning there will be an excess of 1,500,000 share available to public and excess of 1,500,000 for organisation. This will create a situation where there is now a total of 2,000,000 plus 3,000,000 share suddenly, where existing shareholder holder (in totality) will be forking out extra $9,000,000 for the excess share placed into circulation, on top of the already invested $12,000,000. This is illustrated below. Before rights ($6 per share) 2,000,000 shares (existing) -------  $12,000,000 After rights ($3 per share) 2,000,000 shares (existing) -------  $12,000,000 3,000,000 shares (issued) ---------$9,000,000 Total invested value $21,000,000 After rights and revaluation {total value per share @ $4.20, computed by [(2)*($6)+(3)*($3)/5} 2,000,000 shares (existing) ------  $8,400,000 (immediate lost of $3,600,000) 3,000,000 shares (issued) -------  $12,600,000 (gained of $3,600,000) Looking at this hypothetical situation, the issuing of rights had placed direct dilution and transfer of $$$ from the existing share in circulation to the future share rights. This is unlike direct dilution, where for example, 2 shares entitled to 3 shares (free), where the total worth of all the shares in concern remained the same. Thus, if for some reason, no one in the market wants to buy the rights issue (two shares for three shares @$3/share), and Temasak bought up all of the unsold quantity, isnt it a transfer of value? Additionally, comparing the  before-  and  after  rights  issue, why is there a need to pay an extra of $9,000,000 to the market to dilute the share value? Lastly, logically and mathematically, how did the extra 3,000,000 shares come to existence and with the need to pay extra for them. Isnt this money printing per se?
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Rollercoaster Member	31-Mar-2020 14:27        Rollercoaster About Contact  Quote this Post!
x 0   x 0  Alert Admin	Thanks for the confirmation uiop1223      ( Date: 31-Mar-2020 14:07) Posted: Yes. If i read correctly, any shareholders who never take up the rights entitlement, temasek will commit to take up Rollercoaster      ( Date: 31-Mar-2020 14:03) Posted: Anyone care to explain about temasek saying they will underwrite everything? That means those rights issue shared if there is any unscribed share they will take it up? Thanks
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davekoh Member	31-Mar-2020 14:11        davekoh About Contact  Quote this Post!
x 0   x 0  Alert Admin	Can anyone advice on whether is it better to sign up for the Mandatory Convertible Bonds (MCB) apart from the Rights? ie. if don' t sign up, will lose out on the value of the actual SIA share? Extract: " The Rights MCBs are proposed to be offered on a renounceable basis and issued in the denomination of S$1.00 for each Rights MCB, on the basis of 295 Rights MCBs for every 100 existing ordinary Shares held by Shareholders at the Record Date, fractional entitlements to be disregarded."
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uiop1223 Supreme	31-Mar-2020 14:07        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Yes. If i read correctly, any shareholders who never take up the rights entitlement, temasek will commit to take up Rollercoaster      ( Date: 31-Mar-2020 14:03) Posted: Anyone care to explain about temasek saying they will underwrite everything? That means those rights issue shared if there is any unscribed share they will take it up? Thanks
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Rollercoaster Member	31-Mar-2020 14:03        Rollercoaster About Contact  Quote this Post!
x 0   x 0  Alert Admin	Anyone care to explain about temasek saying they will underwrite everything? That means those rights issue shared if there is any unscribed share they will take it up? Thanks
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Justice888 Supreme	31-Mar-2020 11:47        Justice888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Oic ok Shifu8888      ( Date: 31-Mar-2020 11:29) Posted: Ex rights price and when rights are converted to mother shares. Justice888      ( Date: 31-Mar-2020 11:23) Posted: Yesterday Nomura and Citibank cut target price to $4 and $4.34 respectively . I think better to wait for a while to lon
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Shifu8888 Supreme	31-Mar-2020 11:29        Shifu8888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Ex rights price and when rights are converted to mother shares. Justice888      ( Date: 31-Mar-2020 11:23) Posted: Yesterday Nomura and Citibank cut target price to $4 and $4.34 respectively . I think better to wait for a while to long uiop1223      ( Date: 31-Mar-2020 11:21) Posted: Ex-all TP: $5.80 means after the rights, the share of sia is valued at $5.80? I thought it shld be near the TERP of $4.40?
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Justice888 Supreme	31-Mar-2020 11:23        Justice888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Yesterday Nomura and Citibank cut target price to $4 and $4.34 respectively . I think better to wait for a while to long uiop1223      ( Date: 31-Mar-2020 11:21) Posted: Ex-all TP: $5.80 means after the rights, the share of sia is valued at $5.80? I thought it shld be near the TERP of $4.40?
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stockshort Supreme	31-Mar-2020 11:23        stockshort About Contact  Quote this Post!
x 0   x 0  Alert Admin	cant cos no one playing already haha uiop1223      ( Date: 31-Mar-2020 11:21) Posted: Ex-all TP: $5.80 means after the rights, the share of sia is valued at $5.80? I thought it shld be near the TERP of $4.40?
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uiop1223 Supreme	31-Mar-2020 11:21        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Ex-all TP: $5.80 means after the rights, the share of sia is valued at $5.80? I thought it shld be near the TERP of $4.40?
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john_ric Supreme	31-Mar-2020 11:13        john_ric About Contact  Quote this Post!
x 0   x 0  Alert Admin	Maintain HOLD. Ex-all target price: S$5.80. Suggested ex-all entry level: S$5.20.
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aplinchris Member	30-Mar-2020 23:32        aplinchris About Contact  Quote this Post!
x 0   x 0  Alert Admin	Thank you, Shifu, I will focus on SATS and SIA Engineering instead then. Shifu8888      ( Date: 30-Mar-2020 07:19) Posted: I do not know. But my advice is do not short now. The market maker will keep the mother share attractive to incentivize rights subscription. But never say never. My take is the Mother price will have to be maintained above 5. Anything below $5 will precariously dip towards Low $4 making the rights not palatable to subscribe. But judging by the fake bull run (more like a bear trap to me), the price may dip below $5 intermittently. Not sure again. But I will not touch SIa though I do not enjoy the arrogance of the cabin crew, we as Singaporeans need to embrace and adore this national airlines of ours. Temasek will keep it afloat. The CB issuance is a panacea to take it private if it chooses to convert to shares when mature. Has anyone have access to any research report? Will be good if they can post it here. aplinchris      ( Date: 29-Mar-2020 23:04) Posted: Shifu, what do you think the price range will be before rights issue (the period now)? Seems like $6+ is still quite high and good to short given the $4.40 theoretical ex-rights price
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Goldfinger Supreme	30-Mar-2020 16:56        Goldfinger About Contact  Quote this Post!
x 0   x 0  Alert Admin	Only angmoh and SQ staff think SIA is the best now. Most Sinkie think SQ deserves a good dressing down. Look at the oil hedge losses upcoming. Disgusting. AhLiang      ( Date: 30-Mar-2020 16:54) Posted: No crisis for me because I am not vested in any stock now but as a Singaporean I want to suggest to this Singapore airline company it should take this opportunity to fire the foreign air stewardesses who don't observe oral hygiene. I know this message some how will get to SIA Training Center and the Management since they are very free now. Only Ang Mo would praise SIA nowadays. You are facing personal crisis? Dusktilldawn      ( Date: 30-Mar-2020 15:41) Posted: --- Post Removed by User ---
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AhLiang Elite	30-Mar-2020 16:54        AhLiang About Contact  Quote this Post!
x 0   x 0  Alert Admin	No crisis for me because I am not vested in any stock now but as a Singaporean I want to suggest to this Singapore airline company it should take this opportunity to fire the foreign air stewardesses who don't observe oral hygiene. I know this message some how will get to SIA Training Center and the Management since they are very free now. Only Ang Mo would praise SIA nowadays. You are facing personal crisis? Dusktilldawn      ( Date: 30-Mar-2020 15:41) Posted: --- Post Removed by User ---
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uiop1223 Supreme	30-Mar-2020 16:54        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Uh huh.... probably by retailers betting on privitasation? Papason883883      ( Date: 30-Mar-2020 16:39) Posted: Do u see the price tank lower? Cos today hit 1.61 and got pushed up
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Goldfinger Supreme	30-Mar-2020 16:50        Goldfinger About Contact  Quote this Post!
x 0   x 0  Alert Admin	You are SIA staff yah? Dusktilldawn      ( Date: 30-Mar-2020 15:41) Posted: --- Post Removed by User ---
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Justice888 Supreme	30-Mar-2020 16:44        Justice888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	I doubt SIA will privatise. Bec got about 40% comes from external sources... uiop1223      ( Date: 30-Mar-2020 16:36) Posted: SATS highly unlikely to privatize. Its pe ratio is 16currently and not cheap. For SIAE, well yes, its cheap, but temasek is different from a private major sh. Say for eg OSIM, owner wants to delist since price is low and he can later choose to list in hk at higher price. But temasek is based on whether the company need ICU or not. Like SIA, critical condition, need ventilator
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Papason883883 Senior	30-Mar-2020 16:39        Papason883883 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Do u see the price tank lower? Cos today hit 1.61 and got pushed up
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