RFTrader
2021-05-20

$SINGAPORE AIRLINES LTD(C6L.SI)$ What is happening to SIA this morning? Some days that the operating numbers are improving whilst others cheer at the funding support (assuming free money from Temasek).

From the analyst report I read, some have not priced in any form of dilution or cost from the MCB issues. Without coupon payable, they have effectively treated the MCB as free money to shareholders. This is just pushing a problem to many years down the road when the MCB is nearer to conversion.

Perhaps there could also be some invisible hands trying to keep the share price close to the conversion price in order to hold up the secondary market price of the existing MCB and make the MCBs at the money to attract shareholders to subscribe.

At this moment, I would prefer to stay out and watch the show. Trade with care. 

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Comments

  • S土豪熊貓G
    2021-05-20
    S土豪熊貓G
    Is this good for small time investor like is in the long RuN?
    • RFTrader
      There are just too much uncertainties in the world today and especially in aviation industry. For small investors like us, we need to allocate our capital carefully to get the best possible returns.
    • RFTrader
      Personally, I don't find SIA attractive at current price level and the MCB locks up capital without any coupon. Will give it a miss.
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