SIA: Ang moh and Jap brokers are going to look stupid

In Airlines on 13/04/2020 at 4:00 am

Look at the price targets for SIA. Basically JPMorgan and Nomura are extrapolating from the theoretical ex-price of $4.40. A dangerous extrapolation given that Temasek holds 55% and is not a seller.

Price targets(From the Edge) :
$6.27 HOLD (CGS-CIMB Research)
$5.54 DOWNGRADE HOLD (Daiwa Securities Research)
$5.80 HOLD (UOB Kay Hian Research)
$4.34 REDUCE (Nomura Research)
$6.60 DOWNGRADE HOLD (DBS Group Research)

I have an odd lot of 600 shares: don’t know where or how my mum got it. I’ll hold on them and subscribe at the price of $3 for each new share (3 new shares for 2 existing shares) even if the shares rebound to $6.60 (I doubt it’ll rebound to that price before the ex rights date. But it did close at 6.13 on Friday). Note there are also convertible bonds to subscribe for.

Looks like money for jam at this stage.

  1. 5.75% convertible mite look more sensible, especially given the uncertainty over length of time for recovery. Early recovery favour the stock, late favour the convo – I am on the pessimistic side meaning elongated U recovery.

  2. oh talk cock, forget my comment, LOL!

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