SembCorp Industries Ltd *Official* (SGX: U96)

[Sinkie]

SMM is zero value in SCI’s SOP
● Stripping out SMM, SCI’s utilities business is worth S$2.00/share on DCF (implied P/E of 10x CY16 or 0.8x book value) and industrial parks at S$0.47 (at book value). This translates to zero value from SMM, which we deemed as illogical.
● We maintain our Add call and SOP-based target price. Potential re-rating catalysts are stronger-than-expected earnings from utilities and partial settlement of payment from Sete Brasil in SMM.

yeah, buy at $2.00 !! once bought already, then sell smm !!

 

[Sinkie]

i suspect this is all smoke grenade

SMM price go up, then they issue rights

shareholders GG

yeah, i think is right issues too..

 

[OngHuatHuat]

I think sci does right? Not smm?

cause I thinking SCI credit rating is good and temasek backed
they can borrow cheaply at 3-4% to pay for SMM rights

end up retail investors have to be careful if SMM does rights

 

[lalalalalala]

Sci sells off smm to kc/temasek, sci book value goes down, share price will follow

Sci buys out smm, sci lose money smm gain

Only downside for this counter

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[OngHuatHuat]

No no, if sci spins off smm, the price will go up.
It will receive cash and pay out as special dividend. This is what happen when they sell subsidiary.

Sci sells off smm to kc/temasek, sci book value goes down, share price will follow

Sci buys out smm, sci lose money smm gain

Only downside for this counter

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[OngHuatHuat]

Especially so when the subsidiary is taking the parent down.
After the subsidiary is taken out, the parent share price will go up. Unless the parent company is selling a profit making subsidiary to raise cash to save parent, then different story already.

No no, if sci spins off smm, the price will go up.
It will receive cash and pay out as special dividend. This is what happen when they sell subsidiary.

 

[lalalalalala]

SCI now dont have $$$ to buy out SMM

either temasek loan SCI at 4% long term bonds
or SCI do rights issue

if temasek lend SCI cheap $$$, its good ... free leverage at low cost

but if SCI do rights issue is NO GOOD

Hmm ok. Thanks for your insight

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[doland]

so is there any chance of sci recovery to $3+ in the long run?

any advice here to continue hold and ride out of the bad market or cut losses.

financial results will be out on 17 feb 2016

 

[lalalalalala]

so is there any chance of sci recovery to $3+ in the long run?

any advice here to continue hold and ride out of the bad market or cut losses.

financial results will be out on 17 feb 2016

Future looks bleak to me..

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[joshua182]

sigh.... i hate saying this but i did tell yall so...

 

[bibu00]

Hoot at 2.36 today. Jin emo

 

[foozgarden]

say, SCI buy out SMM at the current NAV + X% premiun. still <$2

whats going to happen to holders of SMM who bought at $3+ or $4+ ?
they going to lose > 50% ?!!

 

[lalalalalala]

say, SCI buy out SMM at the current NAV + X% premiun. still <$2

whats going to happen to holders of SMM who bought at $3+ or $4+ ?
they going to lose > 50% ?!!

That happens, both side die

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[FreedomAngelz]

Wallstreet Article on SCI
http://blogs.wsj.com/moneybeat/2016/01/18/singapores-sembcorp-industries-neednt-suffer-sins-of-the-child/

 

[lalalalalala]

SCI results 17 feb

why so long?

KC results tmr liao

SCI one still need wait one more month

Intern preparing docs

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[blankk]

SCI results 17 feb

why so long?

KC results tmr liao

SCI one still need wait one more month

KC results will influence sci n smm price also.. Kakakakaaka

 

[fortunecat]

SCI results 17 feb

why so long?

KC results tmr liao

SCI one still need wait one more month

Not possible for KC overall result to be good in this situation right?

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[OngHuatHuat]

Not possible for KC overall result to be good in this situation right?

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if shareholders this year ask the CEO what is the ongoing plans, i hope the CEO can prepare a better answer.

 

[thegodfather]

I think SCI is a good counter. big time paper losses for me but I am starting to worry about SMM if it will drag SCI to force issuing of rights maybe to buy out SMM. long term might be good for SCI but short term for people like us who is holding at $3.60 and above is kinda zzzzz...

what do you people think? sell at rebound or just hold and average down or do nothing. holding 20 lots of sci

 

[arctician]

I think SCI is a good counter. big time paper losses for me but I am starting to worry about SMM if it will drag SCI to force issuing of rights maybe to buy out SMM. long term might be good for SCI but short term for people like us who is holding at $3.60 and above is kinda zzzzz...

what do you people think? sell at rebound or just hold and average down or do nothing. holding 20 lots of sci

i think smm holders should worry more

if it got privatised ppl who bought at $3+ might not be able to get their $ back

sci ok lah