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Sembcorp Marine overvalued
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uiop1223
Supreme |
19-Aug-2020 17:21
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Maybe the fat general from SPH will rotate to CEO of SMM and then sell to foreigner.
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chart_expert123
Master |
19-Aug-2020 17:19
Yells: "Only buy stock with revenue or net cash flow growth!!!!" |
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The money raised from right will pay back the debt recently loan from Temasek.
It will be back to the same issue, when will sembmar turn profitable? Compared to keppel, sembmar didn't lay off employees and shut down subsidiaries like keppel since oil price crashing in 2015. So, the cash burnt and debt roll up for last 5 years and resulted today right issue. Sembmar are far from recovery and it may be a temasek endless bleeding cow like previous chartered semicon or NOL. |
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Octavia
Supreme |
19-Aug-2020 14:13
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WHAT YOU MUST DO WITH YOUR SEMB CORP MARINE RIGHTS Sembcorp Marine rights will be trading on SGX today (19 Aug 2020). There are at least 3 options you can consider. Regardless which you choose, you MUST ACT. Please don&rsquo t repeat the SIA renounceable rights and MCBs episode previously. If you need more information, you can refer to this where we explained what Sembcorp Marine and Sembcorp Industries wanted to do. Here&rsquo re the relevant documents from Sembcorp Marine about the offer. To make it easier for you, these are your possible options: Option 1: SellThese are renounceable rights which means they will be traded on SGX. You can choose to sell them instead of paying to convert them to shares. My guess is that the initial price would be close to $0.02 since Sembcorp Marine closed at $0.22 and the conversion price is $0.20 for each right. But of course the prices are subjected to changes due to market forces and perceptions. How many rights will you have?You get 5 rights for every share you own. Simply multiply the Number of Share you own by 5 to get the number of rights you have. You can also login to your CDP account or refer to your broker&rsquo s letter (if you held the shares in a custodian account) to confirm the number. Who should consider selling?You should sell if you have NO intention to subscribe the rights. At least you get back some cash. Don&rsquo t let it expire. You have until 27 August 2020 at 5.00 pm to sell them and after which the counter will be delisted. The counter is Sembcorp Marine R (SGX:THFR). Option 2: SubscribeYou can also subscribe by paying $0.20 to convert each right to a share in Sembcorp Marine. If you have 1,000 shares, you would be granted 5,000 rights. You can pay $1,000 to convert the rights to shares and you will end up with a total of 6,000 shares. If you wish to subscribe, make sure you do so within the time period! You can pay for the conversion at the ATMs (shares held in CDP) or transfer to your broker (shares held in custodian). The acceptance of the payments and applications starts from 19 Aug 2020, 9am and ends on 2 Sep 2020, 5pm. Option 3: Subscribe to partial rights and sell remainderThe last option is that you can subscribe to fewer rights than you were entitled. For e.g., you have 5,000 rights but only wish to subscribe to 2,000 rights. You can pay for the 2,000 rights ($400), and SELL the remaining 3,000 rights that you want to give up. You&rsquo ll need to take 2 actions:
I recommend you to do both at the same time in case you forget to do one and not the other. Option 4: Subscribe to MORE rightsYou can also subscribe to more rights than what you were given. To do so, you can either:
The advantage of the former is that you don&rsquo t need to pay additional fees (above the $0.20 conversion) for the excess rights. But it is a ballot so it isn&rsquo t guaranteed you get what you applied for. The advantage of buying the rights from the stock market is that you would definitely get the excess rights and can convert them to shares. The downside is that you have to pay extra in this process. Important: Please ActThe worst thing you can do in this exercise is to do nothing. You should either sell the rights or pay for them to convert to shares. Last Warning: The rights will stop trading on 27 Aug 2020, 5pm and the last date to pay for conversion would be 2 Sep 2020, 5pm. Decide now and act! |
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uiop1223
Supreme |
19-Aug-2020 13:09
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Lol... actually my advice when the scheme comes out is to sell immediate. Before XR
Anything, if really want to buy SMM, wait under whole sage over. And this incldes crediting of SMM shares to SCI shareholders. Expect another round of selling
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schreck
Member |
19-Aug-2020 13:08
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wanted to sell the rights hopefully at 1c or 2c. at this price not even worth the effort |
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dimebag
Master |
19-Aug-2020 12:58
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Is anyone subscribing to the rights or just going to sell at literally no value? | ||||
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uiop1223
Supreme |
19-Aug-2020 12:30
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To my knowledge, SMM has no scripts for shorting.. | ||||
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Octavia
Supreme |
19-Aug-2020 12:16
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Very true.These are the sophisticated traders who have the knowledge,means and leverage not many retailers can have the opportunity to do this.Basically they are the PRO.
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Octavia
Supreme |
19-Aug-2020 12:09
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Fund ofc belongs to different league.I referring to retailers, minority shareholders who are s always at the losing end.
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sapneela
Member |
19-Aug-2020 11:50
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I think a lot of activity in the market revolves around a strategy where one short the mother share ( after borrowing it ) and then buys right at very cheap price ( like $0.002 or 0.001). If they shorted mother share at $0.25 or even at $0.22 and today they can buy the rights at $ 0.002, their buyinng price will be $0.202 ( 0.020+0.002). They can still make money by the arbritage but in the process , the guys who wanted to sell their rights ( as they dont want to fork out additional money to subscribe to rights) see the value of their rights dropping to close to zero. Unfair game. More selling will happen when all subcribers of rights start selling from 2nd September onwards. | ||||
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destinykraze
Elite |
19-Aug-2020 11:49
Yells: "Reality is only a matter of perception" |
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Funds have access of super low rates. when you talk about volume like 100m rights. They will still make a lot of $. The selling pressure will continue.
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chart_expert123
Master |
19-Aug-2020 11:29
Yells: "Only buy stock with revenue or net cash flow growth!!!!" |
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Majority minor shareholders won't attend EGM and vote. Not vote against, it will automatically counted as vote agreed.
In short term, there will not plan to merge keppel and sembmar after this right issue. Plan may triggered by Temasek again after covid19 once aviation industry is recovered.
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chart_expert123
Master |
19-Aug-2020 11:26
Yells: "Only buy stock with revenue or net cash flow growth!!!!" |
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This is common for company which issue major right, price stay below 20 cents after ex right due to panic selling.
Buy up strength not found, bottom price are not yet determined. |
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Trader1987
Veteran |
19-Aug-2020 11:23
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< $0.20 coming? | ||||
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Octavia
Supreme |
19-Aug-2020 11:02
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Rights so low price sell also lose money taking into consideration of broker fees.Majority of minority shareholders ended up doing nothing,i.e. remain status quote and hope for the best. | ||||
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destinykraze
Elite |
19-Aug-2020 11:01
Yells: "Reality is only a matter of perception" |
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The real selling will only begin when the big hands is at near the end of their distribution. | ||||
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schreck
Member |
19-Aug-2020 10:59
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amazing can still 97% vote for the restructure | ||||
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uiop1223
Supreme |
19-Aug-2020 10:55
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Ya... it will be like SIA MCB. Towards end of trading period, Selling at $0.001 but no takers | ||||
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michaeltan
Master |
19-Aug-2020 10:54
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No incentive to subscript the right issue shares, I think the mother share will drop below $0.20 is only a matter of time.
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destinykraze
Elite |
19-Aug-2020 10:51
Yells: "Reality is only a matter of perception" |
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Shareholders' shares are diluted, earnings per share will drop dramatically. Sembcorp marine will settle at $0.2 for quite a while. | ||||
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