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Haiz, I am a goondoo to have invested in DBS shares, now at a fix whether to apply for the rights issue.
Perhaps it is better to sell the rights on Monday no matter how low the price is. But most probably, the rights will go below $2 on Monday if DBS go below $8.
It would be ultimate stupidity if I apply for the rights and then watch DBS share price go below the rights issue price. Throwing away good money after the bad.
Or to dump everything in DBS (rights and mother share) and convert to OCBC and UOB, at least these 2 banks generate positive shareholder return for long term shareholders.
Tai wok is d word liao. AK sure will avoid this burger ones. As CNY is round the corner loh, keep some cash for Ang Bao mah!!!
goondoo ( Date: 11-Jan-2009 00:27) Posted:
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DBS share price collapse is really sending shivers down my spine. DBS is considered a blue chip, but now it is trading like a S chip where the share price drop 5% to 10% everyday even when the broad market is stable.
It is exactly the same manner at which AIG share price collapse followed by Citigroup, and now it hit DBS.
If it keeps on falling at 50c to 60c for a few more days, it will go below the rights issue price of $5.42, and then wonder who will apply for the rights issue when u can buy at the open market at a lower price.
Then how? Temasek bail out DBS?
sorry, newbie here... so dun realli understand ur post
wat do u mean by most naked among 3 banks huh?
DanielXX ( Date: 10-Jan-2009 21:24) Posted:
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The important thing here is do not blame the wrong guy. Richard Stanley was parachuted in at the wrong time. The one who caused the damage is Michael Jackson who resigned last year. He is the product of the revolving door management from John Olds to Phillippe Paillart to him. And the results of this revolving door management is now manifested when the tide is going down. DBS is the most naked amongst all the local banks, which is a pity because it started out as the best-endowed in the first place.
Iin a different perception...views differ...different situation...derivation of conclusion...are supported by situational fundamental...reasons of unseeming become realistic...realistic explanation...seems illogical...
Peoples will agree with u now because the share price is declining...just like the dotcom era...when tech bubble...peoples say dotcom company very profitable...only few staffs...earn a lot...after tech bubble burst...peoples are saying no fundamental...just like outside peoples are saying about dbs now.
Time will tell if DBS will crumble like citigroup.
Only the most desperate of banks will try to raise cash through shares in stock market crash.
In a bull run, u can issue shares at a high premium to book value, and create very little share dilution with huge amount of cash raised.
In a stock market collapse (as in now), u raise very little cash by issuing huge amounts of shares due to extremely depressed prices, therefore diluting EPS extremely badly and destroying shareholder wealth totally like citigroup, but raising very little cash in return.
It's just like a very desperate man pawning all his valuables at flea market prices. If he is not extremely desperate and at his wits ends, why sell your pants for just a piece of bread or a bowl of congee. DBS share price collapse in the past 4 days when everything else is not dropping clearly explains this point. If you are not desperate, I think one will rather keep his pants rather than exchange it for some congee.
expounding an analogy using apple n orange, instead of apple n apple or orange n orange..tis sort of analogy, is at best illogical n at worst is totally not suitable.
dun hv 2 analyse or speculate wat others will do.....post shows trying 2 create fear n talking px 2 come down [dun need a genius 2 c it].
Citigroup plunge from $57 to $3 from mid 07 to Oct 08. Midway, it issued shares at around $30 to sovereign wealth funds.
DBS is runned by ex-management of Citigroup.
DBS has a high of $25 in 2007, and it follows citigroup in issuing lots of shares, therefore possible for DBS to fall 90+% like citi and it will possibly reach $2 after the rights issue is floated, and maybe rebound to $6 when mkt and economy recovers.
Citigroup was also trying to calm investors last year when it is raising cash selling shares at US$30, exactly as what DBS is doing rite now, telling investors everything is alright.
Think $2 will be a good buy. $5 to $6 buy will only break even in the long term.
Do not speculate what others will do...there is no ground to rumours...analyze with knowledge...
hv not heard of $5 rumour at all, but if ever come to $6.....will scoop up as much as cash bullets can take.
Seems like it has become the talk of the town but rumours of $5 just sound scarily ridiculous.
so how come you didnt shot ? 
nickyng ( Date: 09-Jan-2009 16:29) Posted:
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wow..thrilling to see this burger go down and lower....arrghhh!! shld hv SHOTED !! :D
wahh..."quickly loan" ?? wow...u n ur broker must be damn close siah :P
keepnosecrets ( Date: 09-Jan-2009 15:55) Posted:
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Anyway, not worth to short again. Down from 10.30 opening this week. Dangerous to do so as it might spring back.
Yesterday, quickly loan 3 lots, so no naked short. Today buy back return to the brokerage. No problem.
nickyng ( Date: 09-Jan-2009 15:49) Posted:
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har?? when did u last short ? yester ? naked short? :P
keepnosecrets ( Date: 09-Jan-2009 15:42) Posted:
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