Singapore Airlines *Official* (SGX:C6L)

[cyk343]

Is SQ still paying Dividends to the shareholders?

Highly unlikely. They dont even have cash to survive, how to give dividend. Loan money to give meh? Lol if that's the case, sound more like a ponzi scheme

 

[Poomer]

Highly unlikely. They dont even have cash to survive, how to give dividend. Loan money to give meh? Lol if that's the case, sound more like a ponzi scheme

wont be the first in sg anyway...

 

[cyk343]

That’s for now because airlines is the poster boy of lockdown

Think forward a bit

In Wuhan folks q to buy air tics once reopened

Posted from MaMaMia HardwareZone Forums app

Lol q is q. But q where? Not at SQ counter also no use. Q at SQ counter, but SQ no flight also no use.

You dont think too far, later cant see hole in front of you.

 

[BBCWatcher]

For those of you holding Singapore Airlines shares who have attached non-Singapore mailing addresses to your CDP account (or to your non-CDP stock custodian's account), it appears you must quickly change your address of record to an address in Singapore. If you don't, then you won't even be offered this pair of shareholder purchase options.

That's a very interesting "quirk" in this rights notice. It's particularly interesting when so many overseas Singaporeans cannot realistically return to Singapore amidst this crisis.

 

[cyk343]

wont be the first in sg anyway...

 

[chngz8]

See, after lunch there is nothing much people can hold on to. $6.20 before lunch was surprising.

Better get out now before it just drops drops drops

Here's the reason:
1. There is absolutely NO revenue. At least not from the main source
2. Cost are running, money are bleeding
3. The announcement yesterday was for survival, not revival.
4. There's point 1

So good luck to those who are buying. Clear it out before the weekends!

Guess we have different opinions which is what makes a market. I actually think this is a great buying opportunity. I think the Airline industry would be the first to bounce when (if) this recovers. Think about all the travel backlog .. be it for Business, Personal (Holiday or Seeing Families).

So.. I bought SIA, with a bet that Airlines (the surviving ones) would be the first business to bounce.

1. There will be revenue (if) when it recovers, because people will (need) to travel again.
2. Cost is High indeed, but the immediately cashflow is no longer a concern.
3. Budget/ Regional Airlines without govt support to fall, and for the survivors (all those national carriers) to step up

 

[Poomer]

Guess we have different opinions which is what makes a market. I actually think this is a great buying opportunity. I think the Airline industry would be the first to bounce when (if) this recovers. Think about all the travel backlog .. be it for Business, Personal (Holiday or Seeing Families).

So.. I bought SIA, with a bet that Airlines (the surviving ones) would be the first business to bounce.

1. There will be revenue (if) when it recovers, because people will (need) to travel again.
2. Cost is High indeed, but the immediately cashflow is no longer a concern.
3. Budget/ Regional Airlines without govt support to fall, and for the survivors (all those national carriers) to step up

never fight the market. if Temasek is pricing it at $3, it’ll go close sooner or later.

who else u think set the price? the 55% shareholder or SIA board of directors?

 

[cyk343]

never fight the market. if Temasek is pricing it at $3, it’ll go close sooner or later.

who else u think set the price? the 55% shareholder or SIA board of directors?

LOL good point.

55% of the company already lower their price. You guys still dreaming of what. Wont be buying until it hits near $3

 

[kakashixx]

Guess we have different opinions which is what makes a market. I actually think this is a great buying opportunity. I think the Airline industry would be the first to bounce when (if) this recovers. Think about all the travel backlog .. be it for Business, Personal (Holiday or Seeing Families).

So.. I bought SIA, with a bet that Airlines (the surviving ones) would be the first business to bounce.

1. There will be revenue (if) when it recovers, because people will (need) to travel again.
2. Cost is High indeed, but the immediately cashflow is no longer a concern.
3. Budget/ Regional Airlines without govt support to fall, and for the survivors (all those national carriers) to step up

SQ is a long long play.

if COVID19 drags out, the airline industry will be a survivor of the fittest game. You are betting that:

1. No way SQ will be allowed to fall
2. All smaller competitors will fold

SQ will increase its market share of the industry, and glory days will be back.


Either way, if u are already vested, u dont subscribe u lose out.

 

[Nakedtoes]

That’s for now because airlines is the poster boy of lockdown

Think forward a bit

In Wuhan folks q to buy air tics once reopened

Posted from MaMaMia HardwareZone Forums app

They buy to fly where? All the places ban them.. They fly internal.. So u ask SIA to fly from Changi to joo koon?

 

[Nakedtoes]

Got money got many better stocks to buy.. Dun waste time and money for SIA..

 

[jermss]

I dont think SIA will be allowed to fail, HSK already said it yesterday. As this drags out i also dont think it will be a V shape recovery. I think the situation will drag till next year.
Why? because this is not problem that you can throw money at. in face no matter how much you throw, you dont have a vaccine its still no use. We need to find a vaccine and that would at least take 12mths. So there is still room for SQ to head downwards but with that said yes I think it will come back quick too... perhaps a U shape situation.

 

[icyflame]

Got money got many better stocks to buy.. Dun waste time and money for SIA..

It was in my list. After the announcement, it is in my to short list

 

[hwbest]

based on your calculation the breakeven price for each SIA share you get from MCB is $2.689.

That means SIA shares just need to be higher than $2.689 in 10 years for you to make a profit on your MCB investment.

Subscribing to MCB is a no-brainer.

Note: Cost Price of MCB = $2950 = 1097 SIA Shares at maturity.

I spent the better part of the morning trying to understand this Bond Rights issue. This is my current understanding illustrated by example.

Assume I currently have 1,000 SIA Shares

# of Shares 1,000
# of Rights MCB 2,950
Face Value of Bonds S$2,950

Dates Redemption Px Redepmtion Amt
Semi-A Date 1 102.00 3,009.00
Semi-A Date 2 104.04 3,069.18
Semi-A Date 3 106.12 3,130.57
Semi-A Date 4 108.24 3,193.08
Semi-A Date 5 110.41 3,257.10
Semi-A Date 6 112.62 3,322.29
Semi-A Date 7 114.87 3,388.67
Semi-A Date 8 117.17 3,456.52
Semi-A Date 9 124.88 3,683.96
Semi-A Date 10 128.00 3,776.00
Semi-A Date 11 131.21 3,870.70
Semi-A Date 12 134.49 3,967.46
Semi-A Date 13 137.85 4,066.58
Semi-A Date 14 141.29 4,168.06
Semi-A Date 15 155.78 4,595.51
Semi-A Date 16 160.47 4,733.87
Semi-A Date 17 165.28 4,875.76
Semi-A Date 18 170.24 5,022.08
Semi-A Date 19 175.35 5,172.83
Semi-A Date 20 180.06 5,311.77

# of Shares at Maturity 1,097

2 Things can happen to me as a bond holder.
- Either SIA Redeem the Bonds according to the table above OR
- SIA allow the bond Mature, and my bond will be converted into 1097 shares (5311.77 divided by $4.84).

My profit or loss if the bond is converted -> If SIA Shares trades above $4.84 , 10 Years later, I will make money, otherwise.. not.

Hope this helps

 

[Paul Lee]

based on your calculation the breakeven price for each SIA share you get from MCB is $2.689.

That means SIA shares just need to be higher than $2.689 in 10 years for you to make a profit on your MCB investment.

Subscribing to MCB is a no-brainer.

Note: Cost Price of MCB = $2950 = 1097 SIA Shares at maturity.

That is only true if SIA chooses not to redeem the MCB early and let it goes to maturity.

I'm not sure if it is in SIA's interest to delay redeem the MCB once it is in a financial position to do so. And if it is not in a position to do so, then it's debatable if SIA shares will be worth $2.689 then.

A lot of things can happen in 10 years.

 

[MichealScott]

Interesting...learnt a lot of new things here about rights and bonds..thanks guys

Sent from Stamford Bridge using GAGT

 

[BBCWatcher]

I dont think SIA will be allowed to fail, HSK already said it yesterday.

Singapore Airlines’ shareholders and bond holders are not Singapore Airlines! It is utterly common in the airline industry for shareholders to be wiped out, bond holders to take significant haircuts, and the airline to keep flying. The government only cares about the last bit.

Investors know this basic fact. That’s why this deal is structured as it is. When the dust settles Temasek and DBS will end up owning a greater percentage of this struggling airline (Temasek definitely, DBS probably), hold more of its debt, have even more debt seniority, and collect more interest while they can (this is high cost debt). As they should; it’s the best offer Singapore Airlines is going to get.

How lucky do you feel?

 

[yiron]

based on your calculation the breakeven price for each SIA share you get from MCB is $2.689.

That means SIA shares just need to be higher than $2.689 in 10 years for you to make a profit on your MCB investment.

Subscribing to MCB is a no-brainer.

Note: Cost Price of MCB = $2950 = 1097 SIA Shares at maturity.

It's $2950 of today's money, vs 1097 SIA shares 10 years down the road.

And like what others mentioned, economically it does not make sense for SIA to convert at end of 10 years unless it is in such dire straits that it cannot afford to redeem the MCB. If it was in such dire straits, I highly doubt SIA shares would be worth $4.84 at that point in time, and you would be making a loss 'buying' the shares at $4.84 when you could be buying lower than that on the stock exchange.

IMO, this is only viable if you think SIA would turn for the better in 4-5 years and would then redeem the bond.

For the first 4 years, the bond essentially compounds at 4.04% annualised.

In year 4.5 there is a step up of 13.6% annualised and thereafter 5.06% annualised until year 7.

In year 7.5 there is a step up of 21.6% annualised and thereafter 6.11% annualised until the end.

As you can tell, it gets increasingly expensive for SIA to not redeem the MCB. If SIA is doing well subsequently and could borrow at 3-4%, there is no reason why it would choose not to issue bonds at that rate and use the money to redeem the MCB.

I would over-subscribe the rights issue, but would not apply for the MCBs.
To me the MCBs doesn't offer a great value preposition:
- if SIA does well, it redeems the MCBs early and I get a mediocre return on the bonds.
- if SIA does badly, it does not redeem the bonds and I am forced to use my accrued principal to buy SIA shares @ $4.84 when most likely the shares are trading below that.

 

[fatangel]

When they exercise this right issue? Amy dates announce yet?

 

[starbugs]

Good to see so many supporting the rights issue. I still got a ticket refund pending from SIA, which may not be expeditiously paid without your support!