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SEMBMARINE - A NEW CHAPTER - DEMERGED

If really goes below 10 cents, that would be wonderful for me. Can accumulate more at favourable prices. 

 

Hello , u know or not, where got pump.

Only DUMP!!!

All the way towards 5cts.

desmodeus      ( Date: 27-Sep-2020 16:01) Posted: pump and dump now defines smm trajectory

 

pump and dump now defines smm trajectory
 

 

Data, AI , medical care for elderly.. these are the companies that will do well in next 5-10yrs. Still thinking of oil? Saudis know this and they are trying hard to diverse from oil. These are sunset companies. Telcos used to give superior returns to shareholders in early 2000s. Now no longer. As investors, need to think and find good companies. Dont stubbornly stay loyal to a company.

 

diversify to offshore wind project

better      ( Date: 27-Sep-2020 12:03) Posted: following demerged from SCI, wats in for SMM ? I believe the biggest benefit is that it give them the financial flexibility to bid for multiple billion dollar offshore wind projects at a time.  As they are finalising UK Sophia, they could bid for Danish Thor etc. If the company can reposition their brand in the renewable, sustainable, ESG arena, they would be able to command a significantly higher mutiples in today' s market.

 

If SM is to close shop, bankcrupt...Let' s pull DBS down altogether.....LOL...

 

Also look at other KC biz.....the O& M just doesn' t fit !
Just like the old SCI....

 

Correct.,..Makan here and there...
My next qns to you is that do you think SM will be part of the Makan buddy?

 

IMHO, the ultimate question we have to ask ourselves (especially important to SM SH) is that why previously TH wants to buy up KC to hit 50% ownership?
What is the ultimate goal intend?
Since TH' s withdrawl, is that utlmate goal rejected? Or are they finding a more economical alternative way to reach the ultimate goal?
Why does KC one time write off $919M of asset? One time shock...short and sweet...to reduce their asset? $919M of write off for an SG company is freaking a lot..almost $1B liao....that is madness...
Withe reduced of asset of KC O& M, is it now bite size for chewing?

 

The financial " muscle" that I am talking about is the likely $2 billion cash in their book after the rights issue.

SMM has about $1.5billion cash in their book before demerger. They would not have any problem rolling over their $1+billion short term debt (less than 12months maturity) to longer term maturity after their gearing ratio drops after the righs issue. Adding another $600mil cash from the rights exercise would bring their cash war chest to about $2.1 billion.

As they complete more projects on hand, cash balance will continue to increase. On top of that, government handouts would add another $100-200 million.



 

 

following demerged from SCI, wats in for SMM ?

I believe the biggest benefit is that it give them the financial flexibility to bid for multiple billion dollar offshore wind projects at a time. 

As they are finalising UK Sophia, they could bid for Danish Thor etc.

If the company can reposition their brand in the renewable, sustainable, ESG arena, they would be able to command a significantly higher mutiples in today' s market.

 

How can scm market cap be lesser than current oderbook !!???

danger      ( Date: 26-Sep-2020 14:30) Posted: Gross orderbook of existing contracts is $6.5 billion. Net order book as at end June 2020 stood at $1.91 billion. ❖ Including Repairs & Upgrades outstanding orders for execution of $280 million, net orderbook is $2.2 billion. danger      ( Date: 26-Sep-2020 14:24) Posted: I think it has to do with the suspended order for sete brasil drillships worth 5billio

 

Following the demerger, whatever stock options the SMM mgt have been given in the past are largely worthless as their exercise price is likely at $1 or higher.

You could argue that CEO has no choice but to subscribe to the rights as the rights issue is highly dilutive. Those that hold on to their shares from before the demerger and DID NOT subscribe to the rights issue will be the biggest losers eventually. The biggest winners are actually SCI shareholders up til the point of the demerger. After the demerger, the subsequent losers would be the ones that sold their free shares at the cheap.

 

The CEO applied and paid for 18.6m shares at $0.20 in the rights issue.    Consolation is .........if we burn, he burns with us.

SlothSG      ( Date: 27-Sep-2020 10:11) Posted: following demerged from SCI, wats in for SMM ? 1. stronger bal sheet - raise $600m cash n  repaid $1.5b loan owed to SCI  2.  branding in the sector & existing net book orders $1.91b 3. momentary overhang in supply due to recent rights issue  4. possible merger given heads wind in O& M ? 5. .........

 

following demerged from SCI, wats in for SMM ?

1. stronger bal sheet - raise $600m cash n  repaid $1.5b loan owed to SCI 
2.  branding in the sector & existing net book orders $1.91b
3. momentary overhang in supply due to recent rights issue 
4. possible merger given heads wind in O& M ?
5. .........

 

 

Actually the post is more directed to uiop than to u As he mentioned sia mgmt never take up mcb and thus scm mgmt pressurized to take up the rights In terms of value investing it makes no sense for anyone to take up sia mcb for a 10 years conversion price of $4.84 ? Where easily in open mkt they can gather at $3+ now.. For scm rights it was a pretty good value then... as share price was still way much higher than 20c even after xr Share price under pressure only after sci shareholders start to unload their free shares Else it would had stay above 20c..

 

Actually how can you compare SIA mcb with scm rights... it is quite different Sia mcb has a maturity date of 10 years.. many might not want to wait so long Scm rights are almost instant in weeks. If there are good prospect to rocket the price up from 20c.. the mgmt also in order to show suppport for this demerger exercise... they surely have to take up If they dont take up ..outsiders will be skeptical too

 

I think i need to make it simpler for benefit of certain members here:

1) Say your basic annual salary is $120k. (Note: bonus and other remuneration is excluded)
2) By being continued to employed in current job, you get to sit in other entities as board members. Say u sit in positions that pay $30k annually. Total = $90
3) Now, major shareholder (e.g. TH) wants to see your loyalty. Wants you to cough up $500k

Qn: will u pay? If no, then u deserve to have paper loss in stk mkt because u dont think ahead.

 

Nope. U see these govt link CEO being rotated around. And u need to know he sits on other board which means he has more sources of income. In fact, after SIA mtgm not taking up the MCBs, probably the SMM mtgm was pressurized into fully taking up the rights. Its a small investment in return for continued employment in govt linked companies + sitting in boards of govt link entities. And for this reason, it also explains why mtgm not buying now because there is no reason to. They have done their ?national service?

That the difference between the rich vs man on street.

www.sembmarine.com/directors/mr-wong-weng-sun

better      ( Date: 26-Sep-2020 16:18) Posted: Dear  " des_khor" , actually Wong Weng Sum do have a choice not to subsribe fully to the rights. His basic pay is only $600k and recently took a 20% voluntary pay cut. To commit $3.7 mil to secure a $600k rice bowl is very costly indeed. Don' t you think so?

 

Stock market is also a casino in disguise 

better      ( Date: 26-Sep-2020 17:48) Posted: Dear " TA Exper" , please enlighen us why do you say that SMM is a gambling chip? Isn' t all stock investment a gamble in a certain way? Couldn' t all stocks technically go to zero?  Could you also let us know whether you are currently short, long or have no position in SMM so we take the lead from you?