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LSY, LSY where R U ?? don go leh.., not now, need more help and ammo to fire singtel forward lahh......
My reading is Sing Tel is range bound between $2.60 and $2.41. It will be bearish if the price goes below $2.41. So far, support at $2.41 seems very strong.
as mentioned earlier... Singtel is on downtrend. Another point to note... the Bollinger bands are getting pretty tight - meaning some sudden price change may occur soon.
chipchip66,
Some of our govt/TLC led investment that lost/losing money.....Micronics (-$500m), Suzhou Ind Park, Global Crossings, Shin Corp (-$1.6b), Bintan Resorts, Dao Heng Bank, some other industrial parks in Wuxi, Vietnam, Philippines and Thailand that has not been publicised.
I just recieved a letter informing me of capital reduction. Anyone else got that?
Looks like not all buys overseas are good buys. Amazing that Singtel have bought Optus at such a high premium. But what were their intentions then?? If they are going on the long haul, why are they giving up now???
From TA charts, Singtel is on a medium term downtrend. Look at its Acc/Dist and RSI... its been gradually going down in the last couple of months or so.
In Oct 2001, Singtel paid $13b for loss making Optus. Of the $13b, $11.4b was goodwill => NTA of Optus was only $1.6b. Price for Optus was 8.1X NTA......i.e Singtel paid $8.10 for something that was worth only $1.00.
Singtel managed to turn Optus around after 2 years but with alot of effort by its management.
Should Singtel find it prudent to write down $5b of Optus, this will translate to $0.30 per sh.....writedown $8b => $0.48 per sh. This will reduce its NAV from $1.44 to $1.14 or $0.96
Another bit of info....Yong I Ling...daughter of ex CJ Yong PH....and Director of SembCorp
She bought 1.4m Singtel shares on 27 Jul @ $2.56 per sh. Between 30 Aug and 12 Sep, she sold 1.0m share @ between $2.43 - $2.50. This is quite a hefty loss in 6 weeks. Do you think she knows something we don't?
Read between the lines..... don't form your conclusions and make your decisions solely on the local press.......
It is not considering a writedown for its Australian unit Optus, rejecting a suggestion made by Merrill Lynch in a client note that SingTel may have to do so, the Business Times reported. " We think there is a growing risk that SingTel could be facing a massive writedown on its Optus investment, unless returns materially imoprove by the year to March 2008 or March 2009," Merrill Lynch said in a note sent to clients on Sept 8.
The brokerage estimated that the writedown could be between $5b and $8b.
But SingTel spokesman Peter Heng told the newspaper that SingTel's external auditors had signed off that in the year to March 2006, a writedown of Optus' carrying goodwill was not required
Heng said a review of the carrying value of the goodwill is carried out annually.
"As a matter of good corporate governance and disclosure, any events that are of interest to our shareholders will be disclosed in a timely manner. In the case of any goodwill impairment, and certainly in the magnitude suggested in the recent analyst report, it will be disclosed," Heng said.
I thought Singtel bought it not too long ago ??Or is it they bought it at too high a premium hoping to increase tariffs at the expense of Aussies? Maybe they forgot that Australia is a country that have strong union to defend price increases??
Merrill Lynch said that between US$5b- US$8b could be wiped off the value of Optus if the outlook doesn't improve.
Isit why LSY is leaving bcos of all this unsolve problems keep bottoming up!!! i think he see thing coming, no good memm....
Actually, i don't understand why is Singtel having this Capital reduction exercise! Will people want higher share price or Singtel giving some pocket money back to the shareholders??? It is definitely on a downtrend.! Starhub would be a better bet bcos it is really aggressive and is wiiling to churn out new products and services.
Hi, your dealer will sell for you at 10 share or 100 shares instead of 1000 shares. Prices could be 1 or 2 cents different.
May i ask... after the capital reduction, the bal. shares is not full lot (i.e. 1000), how to sell??
The recent capital reduction has been completed, hence, you will get your payout even if you sell today. Do check with SGX to find out how many share you are sell holding on.
Looking at Singtel price, it is moving down gradually, however, looking at long term, I will still hold and accumulate.
Am I right that if we sell now, we will not be entitled to the capital reduction payout at end Sept ? If so, should one hold on till payout or considering selling now ?
Singtel is on a gradual downtrend now.
I thought the Optus sentiment was generally good just a few months back. How come changed so suddenly?
It was lower amid concerns that earnings at its Australian unit Optus will continue to weaken, dealers said. Merrill Lynch continues to rate SingTel as a "sell'.
"We think there is a growing risk that SingTel could be facing a massive writedown on its Optus investment," Merrill Lynch said in a note sent to clients. "We believe SingTel's stock price will underperform until a substantial restructuring of Optus is made," it added.
"We continue to feel that despite the positives from associates and capital management, SingTel's domestic operations, and Optus in particular, will continue to create risks to our already reduced earnings and valuation growth," Merrill said.