Singapore Airlines

The zero coupon bond has dividend and anti dilution protection. If it is listed in the exchange, it value will also keep increasing every half year. If dividend is declared, the conversion price will also drop. Might not be a bad deal for the bond.

But i have to agreed that at $4.40 after XR is definitely irrational. Maybe too many retail investor do not understand this corporate action. SIA also raise further possibility of raising more fund via bond and outlook does not look great... Look like retail investor blindly invested...

Buying SIA now is doing NS

It is the same logic which led retail investors to purchase Hyflux bonds and shares.

There are many of them thinking that SIA at such depressed prices is a wonderful opportunity, mainly because "the government is not going to let it fail."

But a company not going bankrupt does not mean that its shares cannot lose value.

In spite of its troubles, SIA's share price could rise tremendously in the future.

But what would be the basis/thesis for that?

The thesis of SIA has to be thought differently. Firstly, there is no way Singapore government will let it fail. So the downside is either massive dilution or a low ball takeover during bad times.

During good times, we have to estimate how much SIA can make. Put a price earning multiple and compare your targeted market cap against the market cap Mr. Market is valuing SIA,

If investor are buying on the "government will not let it fail" concept, then the bond of SIA will be a much better and safer bet rather than the equity.  Survive does not mean thrive. Investor have to be able to distinguish between the two. Survive can mean that SIA is being kept alive while the share price kept falling or remain low...

Watching the cna coverage on the SIA share price today is probably the funniest thing I have seen today. 

For a good laugh, watch the following:
Volatile day for shares of Singapore Airlines

And for those interested, here is the profile of the interviewee - Shukor Yusof.

8 May 2020 Trading update on SQ

https://links.sgx.com/FileOpen/Trading%2...eID=609810

1. FY, expect small operating profit, but net loss
2. SQ, SilkAir, Scoot capacity cuts up to 96% unitl end of June 2020
3. over-hedged position closed in March 2020 will be recognised in P&L
4. 1Q FY2020/2021 expect further fuel hedging losses, operating cashflows to remain negative
5. Virgin Australia - zero carrying value @ 31 Dec 2019. no exposure to further loss. no outstanding loans

Stay home, stay healthy everyone.

(06-05-2020, 09:58 PM)lonewolf Wrote: Watching the cna coverage on the SIA share price today is probably the funniest thing I have seen today. 

For a good laugh, watch the following:
Volatile day for shares of Singapore Airlines

And for those interested, here is the profile of the interviewee - Shukor Yusof.

Which part of the CNA interview did you find funny and laughed at?

(08-05-2020, 04:58 PM)Shiyi Wrote: Which part of the CNA interview did you find funny and laughed at?

More shares trading today than yesterday. The rights issue fully subscribed by shareholders.

Technically, he is not wrong of course. But his answers were still incorrect and he can be clearer at the time of the interview.

I find it funny because he is supposed to be an expert.

I think you will find funnier things in the house of Soc Gen which used a 10 year future value of the SQ MCB to calculate the possible dilutive effect on SIA share present day, totally ignoring the time value of money of the same 10 years...…..and as a result mispriced their DLC to the detriment of all those who shorted using their DLC contracts.

Will be interesting to see what SGX say...……..