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SIA C6L - What next for retail investors

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Old 27-03-2020, 05:10 PM   #1
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SIA C6L - What next for retail investors

Hi All,
Now that Temasek is infusing money into SIA to tide the crisis, can some one provide your thoughts on what should a retail investor like me do in below scenario.

Have accumulated SIA shares over time at average price of $9.4. Now trading at $6.0. As a small investor with no appetite for volatility, I want to exit this share in the next 3-6 months with least loss possible. What should the strategy be?

- Wait for the rights and sell the rights to dilute investment?
- Buy rights and hold for medium term?
- Sell now?
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Old 27-03-2020, 05:28 PM   #2
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nobody knows what will happen.

i thought today SIA will hit $5, but it didn't happen. (someone big is supporting)

even at $5, base on today's situation, I wouldn't enter.
I can't see light at the end of the tunnel.

If you see wuhan till now, they are still restricting foreigners.

And with world wide shutdown, I think SIA will be bleeding.

Only way to turn around is a cure and vaccine.
Otherwise every government will be scared of imported case.

How long do you think the cure will come.
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Last edited by item2sell; 27-03-2020 at 05:32 PM..
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Old 27-03-2020, 05:48 PM   #3
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Sorry to ask another question but, when can the rights be subscribed? Is it already out? Apologize for the noob question. Asking on behalf of my dad. 😅
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Old 27-03-2020, 05:57 PM   #4
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Not out yet.. wait ba

Sorry to ask another question but, when can the rights be subscribed? Is it already out? Apologize for the noob question. Asking on behalf of my dad. 😅
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Old 27-03-2020, 05:59 PM   #5
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Depends on ur strategy and time horizon.
We are on roller coaster liao.. if we jump now it sure hurt, if we sit still hold tight, i believe it will raise again.

Hi All,
Now that Temasek is infusing money into SIA to tide the crisis, can some one provide your thoughts on what should a retail investor like me do in below scenario.

Have accumulated SIA shares over time at average price of $9.4. Now trading at $6.0. As a small investor with no appetite for volatility, I want to exit this share in the next 3-6 months with least loss possible. What should the strategy be?

- Wait for the rights and sell the rights to dilute investment?
- Buy rights and hold for medium term?
- Sell now?
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Old 27-03-2020, 08:21 PM   #6
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Lets not get too emotional abt 1 counter.

The drop has occured. Cant unwind the clock. Question nw is.. which vehicle will recover faster?

Oil, STI, s&p, financials or SIA?

Switch to that vehicle instead of focusing solely on 1 counter.
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Old 27-03-2020, 08:30 PM   #7
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Not sure why itís holding up now. Rights is at $3? Big dilution? $6 wonít hold... If Iím gonna apply for the rights, I will aim closer to $3.

But what do I know. 2cents.
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Old 27-03-2020, 08:47 PM   #8
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The diluted price usually will be reflected only after the rights shares are issued. So you can expect the big drop after rights shares issued.

Not sure why itís holding up now. Rights is at $3? Big dilution? $6 wonít hold... If Iím gonna apply for the rights, I will aim closer to $3.

But what do I know. 2cents.
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Old 27-03-2020, 11:01 PM   #9
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Not out yet.. wait ba
Roger. Thanks!
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Old 27-03-2020, 11:11 PM   #10
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Hi All,
Now that Temasek is infusing money into SIA to tide the crisis, can some one provide your thoughts on what should a retail investor like me do in below scenario.

Have accumulated SIA shares over time at average price of $9.4. Now trading at $6.0. As a small investor with no appetite for volatility, I want to exit this share in the next 3-6 months with least loss possible. What should the strategy be?

- Wait for the rights and sell the rights to dilute investment?
- Buy rights and hold for medium term?
- Sell now?
Very difficult to say.. despite funding, its basically just to tide over despite millions of dollars of fixed cost burning every single day. It does not provide a solution to the business, and you never know when operations will resume at full capacity.

Second point.. I never thought that SIA was an astounding counter to begin with. Personal opinion is that it is a complacent company that acted with the belief of having strong backing. It was just an "image" to have as a national carrier.

I don't see price going back up to $9.. neither do I see price holding out at the current level long. If given a choice, would personally unload ASAP. But don't take my word for it, I don't have any holding In this counter
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Old 28-03-2020, 12:01 AM   #11
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Very difficult to say.. despite funding, its basically just to tide over despite millions of dollars of fixed cost burning every single day. It does not provide a solution to the business, and you never know when operations will resume at full capacity.

Second point.. I never thought that SIA was an astounding counter to begin with. Personal opinion is that it is a complacent company that acted with the belief of having strong backing. It was just an "image" to have as a national carrier.

I don't see price going back up to $9.. neither do I see price holding out at the current level long. If given a choice, would personally unload ASAP. But don't take my word for it, I don't have any holding In this counter
If its just a financial crisis, it will not bring SIA / other airlines to their knees since people will still travel, maybe lesser on premium segments.

But right now countries locking down is akin to stopping income totally. NO and I repeat, NO industry can handle with 0 income suddenly. Especially big corporations who have been accustomed to operating with serviceable & healthy debts to expand their reach.

If u see now, no other industry is as badly hit as the airlines industry. The rest are still surviving and some even flourishing because of the shift in demand of goods.
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Old 28-03-2020, 05:17 PM   #12
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SIA still have cargo flight... It is not zero revenue. Need to clear up this misconception
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Old 28-03-2020, 06:55 PM   #13
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SIA still have cargo flight... It is not zero revenue. Need to clear up this misconception
They've also got a trickle of revenue from the few group passenger flights that are still moving (although probably with an operational loss per flight), and they get some revenue from KrisFlyer since people are still accumulating and spending those points. They'll have a bit of SIA Engineering (aircraft maintenance) revenue still coming in, too.

....But it's grim.
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Old 28-03-2020, 08:57 PM   #14
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Interesting read

https://theasiareport.com/sia-bond-2019/
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Old 28-03-2020, 10:02 PM   #15
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tks for sharing, nice read
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