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Genting SP Next Move
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lingua101
Veteran |
19-May-2020 14:12
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will theritcally the SIA share will drop to $3 after the rights been exercised?
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uiop1223
Supreme |
19-May-2020 14:11
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🤔 for avoidance of doubt, i meant to say that after the rights exercise ended, holders of the rights but never exercise (ie pay $3) , temesek will fork out $3 for each rights not exercised
So temesak need not go and buy rights in the mkt now Are we on same page?
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uiop1223
Supreme |
19-May-2020 14:06
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1) First, need to check with broker if this can be done. For me, when i short using SBL, i need to inform my broker when i sell and when i cover back. He will do backend processing. The lending pool is administered by the brokerage firm. Im not sure if u can cover back (ie buyback) by using shares that are converted via rights issue that is newly assigned shares. Like for me, when i short via SBL through poems, i need to buy back through poems to return the shares. I cannot use other broker firms to return because i borrowed from POEMS. I strongly advise asking your broker if the below plan is feasible. Unless your intention is to short and cover back + buy the rights and exercise the rights.. which, go through so many problem and theres risk of loss also (see pt 2 below)
2) Second, whether make money or not depends on the day when rights shares start to trade together with mothershares. What if price falls to $3.5 or $3.2? U are making a loss. I see too many complications..
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churnw
Elite |
19-May-2020 14:02
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If the BB short the rights , end of the day he need to buy back ... | ||||
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newbieliu
Elite |
19-May-2020 13:59
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wah sound like u have backing to support u lol I loaded at 60.5 cents again
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furnaces
Veteran |
19-May-2020 13:57
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Technically can. SBL to short SIA shares at $3.75 then buy rights at $0.60, exercise by paying $3.  After deducting brokerage and cost of borrowing SIA shares. Probably got some kopi money left. On theory is risk free, but who knows. DLC SIA 5x short also can go suspended when SIA trend is down.
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xxboaxx
Member |
19-May-2020 13:56
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lol u all can slowly dream if T will support the current price. they waiting to buy the excess rights at 3 dollar. The more people lost confidence in SIA, the merrier.  3 dollar is a fair value for SIA.  you buy the current price, it is not even 2x when reach pre-covid level.  | ||||
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westpoison
Veteran |
19-May-2020 13:56
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Temasek will take in all rights that are not bought at the end of the day. 
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uiop1223
Supreme |
19-May-2020 13:55
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Exactly. How many times must i repeat that there is no need for Temsaek to buy Rights in open mkt. Do u guys got problem understanding how rights issuance work?
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NT1825
Master |
19-May-2020 13:52
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But how to know if T has bought huge amounts of SIA R shares. If the amount is small for T, not worth to push up to. 4.00. The whole idea is to get the funds into SIA - the job has been accomplised with 100% participation. Going forward it is up to SIA and the market. |
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churnw
Elite |
19-May-2020 13:51
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Will people buy the rights at 0.6 and plus $ 3 is $3.60
Then I sell mother share at 3.75 . Can profit 0.15 which is $150 |
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Bennytan23
Senior |
19-May-2020 13:44
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Agree!!  T is gonna wipe out the excess rights and then make the shares bounce back to above $4.  Just to send a point.. ' when the big brother(T) comes in to play.. follow me'   😂
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Oldman278
Senior |
19-May-2020 13:43
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Must have Con fident in our zeng hu.. they are the best in the world.. jz like SIA..
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newbieliu
Elite |
19-May-2020 13:38
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LOL too high? T will come in to support if it is too low lol Those orignal holders will be bleeding nowfrom the high of 9-11 dollars to now 3.75 already more than 100% drop
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Oldman278
Senior |
19-May-2020 13:37
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Cannot compare. This is SIA.. we r the best of the best.... muahahaha
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xxboaxx
Member |
19-May-2020 13:32
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the current price is too high consider the share dilution. most US airlines are trading at 60-70% drop from ATH.   
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stanleytay
Master |
19-May-2020 13:28
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I dont see why temasek should break below 3.7. I think some of the selling are probably naked shorts. | ||||
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newbieliu
Elite |
19-May-2020 13:26
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Did u guys check if shorting using cfd can buy back right shares to return after its conversion ? Mmm is this a loop hole lol
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newbieliu
Elite |
19-May-2020 13:24
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Those who wanna convert lo or those who wanna cover lol . Lot of selling at 71 at opening
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michaeltan
Master |
19-May-2020 13:23
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Some mathermatics culculation. Mother share $3.75 Right Share $0.61 Exercise R Share $3.00 Different $3.75 - 3.61 = $0.14 of savings 3.73% It is better to sell mother share and buy back the right share. if the right share drop further, I am right to say mother share price will drop futher and you make some gain as you have souhgt earlier at higher price. If the mother share price is up then exercise to purchase the rights. ![]()
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