Friday, March 27, 2020

Singapore Airline Bailout & Rights Issue

SIA getting a Bailout from the government, that is a good news for all the consumer in the world. We love SIA, one of the Best Airline in the world.

How the Past Bailout turnout to be?
So what does it mean for investors? What is a Bailout? It simply means that the company is in need of funding and the government is helping by providing some liquidity. Yes, you are right! Up to aS$19Billion of funding to see through the Coronavirus crisis.

Exact details of the news here: https://www.nasdaq.com/articles/singapore-airlines-latest-to-get-massive-bailout-amid-coronavirus-crisis-2020-03-26

Question 1: Previously in 2008 what happen to some of the stocks that gets a Bailout from US Government?

I remember during that time when the Lehman brother collapes, all the bank shares got into trouble and share price plunge like crazy. The good news came when the US President Bush call for a neccessary bailout to save the financial system. They call it "too big to fail".

so 12 years later.. how is Citigroup doing?

Many people thought that Citigroup has recover to the 2007 price of $50+ but alot of people did not know that Citigroup fall more than 95% during the 2008 crisis and consolidate 10 shares become 1 shares. Example it used to be $50 drop to $5 and at $5 share consolidate 10 become 1, and price looks like $50 again.

So the price you see today.. $46 is still more than 90% down from the 2007 peak.

Another Bailout is also AIG... still more than 95% down after bailout and recently this stock crash like crazy again. 

But.. some Bailout may works.. look at the Japan Airlines in 2010, the company still around but shares holder might not.


Shares of JAL were delisted from the Tokyo Stock Exchange on 20 February 2010.[46][47] At a time, its stock was considered one of "bluest of blue chips" of Japan.[42] At the time, the bankruptcy was the largest Japanese bankruptcy involving a non-financial company and the fourth largest in Japan's history.[42]

Read more on Wikipedia https://en.wikipedia.org/wiki/Japan_Airlines

Another Questions is the Rights Issue:

Rights issue simply means the company need more money. As a investors, we have to know why the company need more money, will they need more? Why not borrow from the banks? or Issue bonds to bigger investors?

Some Detail on the SIA proposed Renounceable Rights Issue :

Date of SIA Rights Period is not yet confirmFor every 2 SIA existing shares, you can subscribe 3 new shares.
The issue pice show a discount of  of 53.8% of March 25 price. To me, market will price in these already, it is a public news. So the "discount" is actually priced in and price will adjust when the rights is out.


Read the full announcement: https://links.sgx.com/FileOpen/Rights%20Issue%20Launch%20Announcement%20.ashx?App=Announcement&FileID=602566

For existing SIA Share holder. You can sell off the rights in the market when you receive the Rights.
or you can subscribe to the Rights.

Just understand that the currently trend of SIA is downtrend, nobody know what will happen or when the coronavirus will end and how the flight industry will work out in the future.

Open a Trading Account with Caleb Gan

Why do i need a broker/remisier when I can place my trade online?

You do not pay extra fee if you open under a remisier, even you apply your account online under our code, you can still place trade online to enjoy the lower commission. Having a remisier will be helpful especially when you need help like account get locked due to wrong password, you can whatsapp to use and get it unlock quickly.

We also keep you updated with trade ideas for long term investment, dividend investing, short term trading opportunities and many other financial education videos!

Drop me a message if you want to know more...

I know you probably have more questions to ask regarding how to get started buying or selling shares in Singapore or how to open the accounts. The best is to drop us a message and let us get back to you.

Contact to find out more!

Whatsapp Mr. Gan now for inquiry  




Friday, March 20, 2020

Opening Stock Trading Account in Singapore 2020 (in 10minutes)

It's 2020, Stock Market Crashed, and you want to start investment! You probably have read many Step by step guide to for account opening online already but don't skip this page... we are one of the award winning Stock brokering team in Singapore and here is our guide.

1. OPEN CDP ACCOUNT ONLINE  (3 minute to complete)
If you already have CDP, skip this step and proceed to step 2.
a) Only for Singaporean & PR
b) Use Myinfo to login with Singpass to open CDP Account
c) Info require: Bank Details, signature on paper and then take picture to upload in later time
d) Within 15 minute, client will get the CDP Account number send through email
e) If ready, click the link now: https://investors.sgx.com/cdp-account-opening/#/form-selection (once click, page down to click Proceed button)

***Most Singaporean and PR would like to open a CDP account and keep their Singapore shares in CDP (Some people call it SGX). It is because there is no custody fee, maintenance fee when you keep shares in CDP.
So if you are not active trader, wants to keep Singapore shares for long term, it is better for you to have a CDP account.
Another advantage is if you want to receive company annual reports or attend agm meeting, keeping shares in cdp will be much easier.
2. OPEN POEMS TRADING ACCOUNT ONLINE (about 6 minute to complete)
a) Client must have CDP account number before proceed.
b) Client must Download “POEMS mobile 2.0” app, click “Open Live Account”
c) To download, click  Apple Store or Google Play

d) Info require need to prepared first
1) CDP Account Number
2) Bank Details will be require later to be key in
3) Signature on paper to be uploaded later.

e) Use Myinfo to login Singpass to open POEMS account, request client to key in any missing info if any
f)  Opt-in Money Marker Fund (MMF)
g)  Please remember to key in “AJF” my remisier code for prefer trading representative at the end of step

h)  Account number will be created and you can set your password right away.

 Commonly asked question:

Why do i need a broker/remisier when I can place my trade online?

You do not pay extra fee if you open under a remisier, even you apply your account online under our code, you can still place trade online to enjoy the lower commission. Having a remisier will be helpful especially when you need help like account get locked due to wrong password, you can whatsapp to use and get it unlock quickly.
We also keep you updated with trade ideas for long term investment, dividend investing, short term trading opportunities and many other financial education videos!

Drop me a message if you want to know more...

I know you probably have more questions to ask regarding how to get started buying or selling shares in Singapore or how to open the accounts. The best is to drop us a message and let us get back to you.

Contact to find out more!

Whatsapp Mr. Gan now for inquiry  

Wednesday, March 4, 2020

🎉🎉🎉 ❤ Congrats on YZJ hit 1st Target, posted CFD short on 24 Feb @$1.01! Now is $0.90.

🎉🎉🎉
❤ Congrats on YZJ hit 1st Target, posted CFD short on 24 Feb @$1.01! Now is $0.90. 


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By Caleb Gan (Phillip Securities Stock Broker & CFD Specialist)