Here's two interesting charts on Singapore Airlines (SIA) that I found doing simple desktop research in late June. It shows the destructive nature of dilution including rights issue and other forms of equity capital raising. These charts illustrate how dilution works negatively for investors and they are great reminders that we have to invest in businesses with strong franchises which require little need for additional capital constantly.The first chart below is a snapshot from Google showing SIA's share price since 2008 or so. This chart adjusts for the recent rights issue that SIA or SQ (its flight code) did in order to survive. The share count has since more than doubled and as such Google adjusted its share price accordingly. Historical prices now showed that SQ did not trade above $10

The STI gained 2.7% for the month, but was down 19.6% for first half of 2020; Month started on firm footing as economies reopened; US FOMC’s sober outlook put brakes on gains as it kept rates unchanged; IMF has downgraded its forecasts for 2020; Hyflux directors face probe in governance lapses; Sembcorp Marine to demerge from Sembcorp Industries   A good start to the month but caution returned The Straits Times Index gained 70 points or 2.7% per cent over the month to finish the first half of 2020 at 2,589.91. For the year to date, the index was down 633 points or about 19.6%  and for the second quarter, it gained 108 points or 4.4%. Not surprisingly, the main themes throughout June were the same that have been in play for most of the second quarter –  were how the COVID

We had a fantastic turnout on Thursday for our Webinar and I had a lot of fun sharing and answering questions from the 750+ attendees who turned up for the launch of the Bulletproof Value Investing 2020 course! I’ve uploaded the WEBINAR REPLAY and you can find it further down the post. More than 50+ students have already joined within the first 48 hours. If you haven’t already joined, what are you waiting for? What Did We Cover During the Bulletproof Value Investing Launch Webinar? During the Webinar, I covered 4 big topics. FIRSTLY – the state of the global economy. I shared with attendees why I don’t see a V-Shape recovery and why I think many people are underestimating the severity of the crisis. We aren’t even in the eye of the storm yet. Unemploymen

We had almost 1000+ people turn up which was incredible and the highest number ever for our launch of the Bulletproof Value Investing Course 2020. Thanks to everyone who took your evening off and came! A replay of the webinar will be posted later this week. Bulletproof Value Investing 2020 is LIVE! After a very successful launch of the Singapore Banks Masterclass which saw more than 300+ students join, I am excited to launch the our newly updated Bulletproof Value Investing 2020. Relaunch Discount Promotion We are offering our 2020 relaunch discount and the course is priced at 65% off the regular retail price. Time to Be Bullish or Bearish? While almost everyone I spoke to the last 3 months is bearish about the markets and economy, an overwhelming number of you have stated that you

Markets plunge on worries of second COVID-19 wave; The Dow suffered its 4th worst loss in history on Thursday; US Federal Reserve delivered sobering assessment of US economy; SembCorp Industries and SembCorp Marine to demerge; Top Glove was one the market’s top performers   Markets fall on second wave worries; US Fed reality check Stock markets around the world last week received a reality check when sudden fears of a second wave of COVID-19 infections sent Wall Street crashing over Wednesday and Thursday. Also dampening sentiment in the US market was a sobering assessment of the US economy by Federal Reserve chairman Jerome Powell, who although made it clear that interest rates would remain depressed, said it would take years for a return to the strong labour market that existed

Warren Buffett famously said, "when the tide is out, then we know who is swimming naked". Well in Singapore today, it's rights issue buffet for companies that start with S. COVID-19 has brought down our Singapore Inc companies like dominos. We saw Hin Leong, which didn't even had a chance to do rights issue and went belly up. Then our beloved national carrier Singapore Airlines raised S$15 billion in March which was more than twice its market cap. Who's swimming naked?Now, we have the Sembawang Corporation Group in trouble. More specifically, Sembcorp Marine (SMM) is in trouble. Its parent, Sembcorp Industries (SCI) and grandparent Temasek are going to save it. Not without caveat though, SCI will disown the child by giving away SMM shares to its own shareholders. But the way it is don

SIA just completed their rights issue. Now it is Sembcorp Marine’s (SGX:S51) turn. This deal ... Read more >>

There are some deals that you have to treat as homework. Going through some of these deals are both a mental exercise but also whether we are able to identify whether any part of the deal is attractive enough. Sembcorp Industries(SCI) and Sembcorp Marine (SMM) were halted a few days ago. There were speculations of privatizations and rights issue but yesterday we get a better picture of it. There are 2 parts to this deal: Sembcorp Marine will issue a renounceable rights issue of 5 rights shares for every 1 existing Sembcorp Marine share at S$0.20. This is not to acquire some assets but to re-capitalize SMM. The proceeds will be mainly used to replace existing debt that was mainly issued by parent Sembcorp IndustriesAfter the rights issue, Sembcorp Industries will distribute

Dear readers, yes, finally the verdict on Sembcorp Marine stock is out. Sembcorp Marine is in plan to raise $2.1 billion with support from Temasek and will be demerged from its parent company, Sembcorp Industries. I was at least partially correct on the longer-term outcome of Sembcorp Marine stock and Sembcorp Industries stock. While Sembcorp... The post AFTER SEMBCORP MARINE STOCK, WILL THESE FOUR OFFSHORE AND MARINE STOCKS BE OF FOCUS NEXT? appeared first on SG STOCKS INVESTING: SAVINGS, GRATITUDE (SG) & STOCKS INVESTING! SAVE MORE, BE GRATEFUL AND INVEST BETTER!.

Temasek stocks of Sembcorp Industries (parent stock, SGX: U96) and Sembcorp Marine (subsidiary stock, SGX: S51) just announce 2 bundled corporate actions of rights issue for Sembcorp Marine and then demerger from Sembcorp Industries. In this article, Dr Tee will compare both Sembcorp stocks and share the possible causes and effects of such actions with deeper analysis. Recently, Temasek stock of Singapore Airlines, SIA (SGX: C6L) just completed the rights and mandatory convertible bonds (MCB) issues to inject extra capital to save the company from Covid-19 crisis encountered in airlines sector with over 90% drop in number of flights. Temasek would become the sponsor to take up additional rights and bonds if not taken up by other shareholders. Temasek may have modified the “res

Dear readers, Sembcorp Marine and its parent company Sembcorp Industries stock were halted last Thursday (4 Jun 20) and remained halted on Friday (5 Jun 20). I am not surprised at the aforementioned news. I have always been of the view that there will be some form of offshore marine and energy sector consolidation in... The post SEMBCORP MARINE STOCK TO BE PRIVATISED? appeared first on SG STOCKS INVESTING: SAVINGS, GRATITUDE (SG) & STOCKS INVESTING! SAVE MORE, BE GRATEFUL AND INVEST BETTER!.

Dear readers, Sembcorp Industries stock saw much selling on 29 May 2020. Sembcorp Industries stock went south by 9.93%. Its subsidiary stock, Sembcorp Marine stock also declined by 2.86%. Since I always looked at Sembcorp Industries stock and Keppel Corporation stock in a pair (as both are Singapore’s offshore and marine conglomerates), I decided to... The post KEPPEL CORPORATION, SEMBCORP STOCKS: WHAT’S NEXT? appeared first on SG STOCKS INVESTING: SAVINGS, GRATITUDE (SG) & STOCKS INVESTING! SAVE MORE, BE GRATEFUL AND INVEST BETTER!.

Both MSCI Singapore Index (SiMSCI, 25 stocks) and Straits Times Index (STI, 30 stocks) are important guidance for Singapore stock investors on “Good” stocks for investing. In this article, you will learn on how to invest in index stocks in a right way. MSCI Singapore Index has recently removed 4 blue chip stocks (which are also 30 STI component stocks) from the list: 1) ComfortDelGro (SGX: C52) 2) SATS (SGX: S58) 3) Sembcorp Industries (SGX: U96) 4) Singapore Press Holdings, SPH (SGX: T39) and adding only 1 stock as replacement: Mapletree Logistics Trust, MLT (SGX: M44U), a giant Singapore REIT, which is also 30 STI component stock. MSCI Singapore Index component stock selection criteria is stricter than STI index (only based on trading market capitalization, a w

The post Sembcorp Ind (U96) & Sembcorp Marine (S51) Guide: Share Prices, Dividends and Market News appeared first on the MoneySmart blog. MoneySmart.sg helps you maximize your money. Like us on Facebook to keep up to date with our latest news and articles. Compare and shop for the best deals on Loans, Insurance and Credit Cards on our site now!The post Sembcorp Ind (U96) & Sembcorp Marine (S51) Guide: Share Prices, Dividends and Market News appeared first on MoneySmart.sg. Original article: Sembcorp Ind (U96) & Sembcorp Marine (S51) Guide: Share Prices, Dividends and Market News. © 2009-2018 Catapult Ventures Pte Ltd. All rights reserved.

Sembcorp and Keppel are certainly on their toes this period. Last week saw an unprecedented drop in oil prices to a negative level, almost -$40/barrel to be exact. Such a phenomenon has not happened in the past and it was largely the result of paper traders and Oil ETFs dumping their expiring May contracts “by all means” as buyers disappear. Since then, WTI oil prices have recovered to roughly $17/barrel as of this writing, a positive figure but not a “champagne popping” price level. IS TIME RUNNING OUT FOR KEPPEL CORP AND SEMBCORP MARINE? The significant collapse of oil prices does not bode well for both Keppel and Sembcorp Marine. Yes, they do not derive their revenue directly from the sale of oil but indirectly in the form of newbuild contracts for production/drilling-relat

Dear readers, it was reported that Sembcorp Marine has reported three consecutive years’ of losses. Based on the above fact, Sembcorp Marine should be put on SGX’s watchlist. However, I read that by virtue of Sembcorp Marine’s six-monthly average daily market capitalisation still meeting the prerequisite financial entry criteria, Sembcorp Marine is safe from SGX... The post SEMBCORP MARINE STOCK: TO BE PRIVATISED SOON? appeared first on SG STOCKS INVESTING: SAVINGS, GRATITUDE (SG) & STOCKS INVESTING! SAVE MORE, BE GRATEFUL AND INVEST BETTER!.

Temasek has offered partial acquisition to Keppel Corp (SGX: BN4) shareholders at the price of $7.35/share up to 51% ownership over 1 year period (with some conditions applied). Since this is not a full acquisition, some investors may be confused of what is fair price for Keppel Corp. Let’s study this acquisition offer in details. Temasek owns 20.45% of Keppel Corp, intending to purchase shares owned by remaining shareholders (100 – 20.45% = 79.55%) to top up to 51% (still need 51% – 20.45% = 30.55%). So, it is partial acquisition of 30.55/79.55 = 38.4%. It means for every 1000 shares, 384 unit will be acquired. The offer price of Temasek at $7.35 is about 20% premium over the average price before acquisition, aligned with several other acquisitions in S

Just at the beginning of March, we saw Sembcorp Marine approaching the KEY 1.10 SUPPORT dangerously…This level was crucial because we have been holding above this level since 2009,Yes indeed, more than 10 years back since the Global Financial Crisis…We were pretty much back to this support that even 2009 crisis managed to hold…So any move below this level can definitely be meaningful… Alerts were set as we were awaiting any bearish price actions from here…It HAPPENED!On the 28 FEB 2020, sellers seem to be coming out in full force to break the support… it tried to hold for a few days but it JUST COULD NOT!!The selling began… Some targets were drawn to the downside with first target at 0.90 as seen below..This bearish call was more for CFD SHORTS to be taken to ride

The three musketeers had their glory days back in the last bull cycle (2001-2008) where ... Read more >>

The weekly 4 Stocks This Week column on DollarsAndSense was started in 2017 with a simple objective was simple: to provide a convenient read each week for busy investors to stay updated with what is happening on the Singapore Exchange. 4 Stock This Week is not a recommendation from us to buy or sell any of the stocks that wke feature. Its purpose is to highlight interesting stocks that investors should be aware of, rather than to analyse these stocks. For this week’s edition, instead of the usual coverage of four stocks, we’ll do a year in review of the other 51 instalments of 4 Stocks This Week that our team has written in 2019. Over the past year (51 weeks), we’ve covered 123 SGX-listed stocks, 4 ETFs and 8 Daily Leverage Certificates. The most covered stock was Sas