Month: September 2021

SIA share price (SGX: C6L) faces ambush from another cash call?

SIA share price C6L

LIFETIME MEMBERSHIP Will SIA share price (SGX: C6L) do a Sembcorp Marine? The latter recently concluded a second billion dollars rights issue that took place less than a year, causing the share price to bomb out to less than $0.10. On 16 September 2021, SIA updated “that the remaining S$0.6 billion of the gross proceeds of S$8.8 billion raised from the 2020 Rights Issue has been applied towards aircraft and aircraft-related payments between 1 July 2021 and 1 September 2021”. Against this backdrop, investors must be wondering if another cash call is on the way.

In one year, SIA burnt through $9.3 billion of cash (including $500 million which had been used for the redemption of SIA’s 10-year Fixed Rate Notes on 9 July 2020). While there is more than sufficient cash for the airline to sustain till the end of this financial year, what will be the situation for the next financial year, which will begin in March 2022? Will there be another round of rights issue that rupture the form of SIA share price (SGX: C6L)?

SIA share price C6L

SIA share price rises from ashes

SIA share price in explosive destiny

SIA share price smashed into rock

The hallmark of Singapore …

DBS Group Holdings share price (SGX:D05) in $10 billion IPO?

DBS Group Holdings share price D05

LIFETIME MEMBERSHIP It could be an event that will move Heaven and Earth, at least for DBS Group Holdings share price (SGX:D05). In a bombshell revelation, DBS CEO Piyush Gupta mentioned in the transcript of DBS second quarter 2021 conference call that the bank is looking at unlocking one of its assets, Remit, through IPO for an eye-popping $10 billion. If the plan does materialize, it will be one of the largest IPOs to grace the Singapore stock market in recent years.

In 2019, I wrote that DBS Group Holdings share price (SGX: D05) will hit $50. Though that day has not arrived, I do think that it is only a matter of time that DBS Group Holdings share price (SGX: D05) reaches this incredible milestone. On 10 August 2021, DBS Group Holdings share price (SGX: D05) hit a record $31.70 after Monetary Authority of Singapore (MAS) lifted the dividend restrictions on local banks. On the basis of its current run, it is not impossible for the counter to hit $40 by year-end if the bank continues to deliver good financial results and lists its digital assets.

DBS Group Holdings share price D05

Question now is when will CEO Piyush Gupta set fire on DBS …

Sembcorp Marine share price (SGX: S51) thrown under the bus

Sembcorp Marine share price S51

LIFETIME MEMBERSHIP For Sembcorp Marine share price (SGX: S51), is it a case of light at end of tunnel or light from an on-coming train? Given the devastating meltdown of Sembcorp Marine share price (SGX: S51), investors can ill-afford to ignore this rhetoric. The $1.5 billion announced on 24 June 2021 had erased more than 50% from Sembcorp Marine share price, causing the counter to plunge from $0.17 to $0.08. Question now: is there any value left in Sembcorp Marine share price? Make no mistake, sometimes cheap does not mean value.

Sembcorp Marine share price S51

Investors who had subscribed to the 2020 and 2021 rights issues should be betting on the recovery of Sembcorp Marine share price (SGX: S51). While that day may eventually come, it could be a long wait. To put things into perspective, the oil and gas industry suffered a severe downturn since 2015 due to the collapse of oil prices and emergence of US’ shale oil. The pandemic arrived to cause a protracted downturn for Sembcorp Marine. In addition, the long-term demand for crude oil is likely to drop as countries commit to the United Nations Framework Convention on Climate Change (UNFCCC) pact signed in 2015.

Looking at the financial …

OCBC share price recovers from Dr Mahathir effect

OCBC share price

LIFETIME MEMBERSHIP It seems that OCBC share price has a strange affinity with Dr Mahathir. When Mahathir became the Prime Minister of Malaysia for the second time in May 2018, it promised to be a political fairy-tale that will be remembered for generations to come. But surely no one in his right mind could have predicted the kind of impact it would have on OCBC share price, which tumbled from a high of $13.65 in May 2018 to a low of $10.40 in October 2018.

OCBC share price

Even more bizarrely, when Dr Mahathir announced his resignation on 24 February 2020, OCBC share price crashed from $11.00 in February 2020 to a low of $8.35 in March 2020. For unknown reasons, it appears to me that Dr Mahathir has that TVB drama “Ting Hai” stock market effect, at least for OCBC share price. Although I am not exactly sure about the correlation between OCBC share price and the venerable leader, one thing for sure is that Dr Mahathir’s B40 policy has a massive impact on OCBC’s Great Eastern Holdings.

When Dr Mahathir returned to power in 2018, one of his many initiatives was the B40 Health Protection Fund, which was meant …

Keppel DC REIT (SGX: AJBU) share price in mystery slump?

Keppel DC REIT AJBU

LIFETIME MEMBERSHIP Keppel DC REIT (SGX: AJBU)’s ascend to the Straits Times Index (STI) has been the stuff of legend in SGX mainboard. Debuted in SGX only in 2014, the data centre REIT knocked the former CapitaLand Mall Trust off the pedestal in October 2020. That spectacular feat sent Keppel DC REIT (SGX: AJBU) share price flying to a record high of $3.04. Since then, the stellar form appears to lose plenty of steam in recent months. What on earth has happened?

Keppel DC REIT AJBU

A Lifetime Member has written in to request for an explanation of the recent downtrend of Keppel DC REIT (SGX: AJBU) share price. If you are keen on coverage of other stocks, do sign up as member! For the longest time, I have been contemplating to invest in an S-REIT with special focus in data centres. Hence, I have been monitoring Keppel DC REIT and Mapletree Industrial Trust (MIT). Both counters are majority-owned by Temasek Holdings and listed in the Straits Times Index (STI). Between the two players, Keppel DC REIT stands out for being a “pure-play” data centre REIT but the acquisition of M1 started to complicate things.

Year-to-date, Keppel DC REIT (SGX: AJBU) share price has …

Wilmar share price plunged 25%

Wilmar share price

LIFETIME MEMBERSHIP In my last article on Wilmar share price (20 June), I wrote that this counter could face huge turmoil in the short-term. Indeed, Wilmar share price continued to meltdown since 20 June, falling from $4.55 to the current $4.16. At current trading level, Wilmar share price is 25% off the 5-year high of $5.57 seen in February. Should investors run for their lives?

Wilmar share price

A Lifetime Member has written in to request for an explanation of the downtrend Wilmar share price. If you are keen on coverage of other stocks, do sign up as member! In 2020, I invested in Wilmar and exited at a profit of $2,700 in early 2021. My lowest entry for Wilmar share price was $4.84 and I exited at $5.20. While I did not exit at the highest point of $5.60, I have no regrets selling my Wilmar stocks. In life, you can never sell at the highest price. I am happy as long as I made decent profits. Although I am not vested in this counter any more, I am still bullish about Wilmar share price in the long-run because of the business strategies undertaken by the management.

The current train-wreck for …