Dear readers, yesterday SIA stock retreated by 3.51% to $3.57 per share. I am not surprised at all by the decline in SIA stock price since I am bearish on SIA stock .
Notwithstanding the fact that SIA has issued rights and mandatory convertible bonds, I have shared with readers my view that going forward, SIA stock could be privatised. I have also earlier elaborated why I would not subscribe to SIA rights if I were an existing SIA shareholder.
SIA stock is a constituent of the Singapore Straits Times Index. Given the current financial status of SIA, I think it would be a matter of time before SIA stock would be taken off the Singapore Straits Times Index. Thereafter, SIA could then be privatised.
Many investors may also think that SIA stock will definitely trade above its right share price of $3 when SIA stock commences trading with its right shares. I am not exactly sure of that. Just think for a moment, if before SIA stock trades with its right shares, the global stocks markets were to undergo another correction? Then, I think investors who are not long-time investors of SIA and also spectators will sell their shares immediately.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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