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I was talking to my broker who said the price is too high and could hit $5. I found it hard to believe but hey, 2009 is probably the year where the pus and maggots start revealing themselves as we get into the core of the recession.
Wishing ALL a prosperous new yr.
Hope ALL wise guys look alike.
Haha! Financial shares are the "devils" to the current global crisis. Those keen on taking a stake should think again. OHL said that next year could be worst as many BBs/Funds are waiting to sell their holdings soon.
paper, analyst dun look good on bks. dun rush for it. may be after CNY then see loh.
rabbitfoot ( Date: 31-Dec-2008 15:31) Posted:
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How about buying DBS rights when it starts trading this 6 Jan ? If buy the rights, when can subscribe mother shares through ATM ?
It seems to be rather attractive to me already at the current price. Well. it can also continue to plunge further.
Blogging at moneytalk.sg on the stock market, ETF and anything to do with money.
Got no ball to lend money althought get S'pore gorvement back up ... how to earn money if no lending ??
AK opines that avoid this burger, until d R settled n listed. D other 2 local bks dun look good as well, for time to come.
Business Times - 24 Dec 2008
DBS takes another hit as analysts lower targets
Shares fall despite S&P keeping stable outlook rating after news of rights issue
By EMILYN YAP
DBS Group shares shed a further 33 cents or 3.5 per cent yesterday to close at $9.04, as plans for a $4 billion rights issue prompted several research houses to cut their target price for the stock.
The slide happened even though Standard & Poor's maintained its stable outlook for the Singapore banking group after the news. The one-for-two rights issue, priced at a 45 per cent discount to the stock's $9.85 closing on Dec 19, would raise funds for the bank to strengthen its balance sheet and grow organically, said DBS on Monday. It also warned of lower fourth-quarter earnings.
Following the announcement, Citi, CIMB, Kim Eng Securities and JP Morgan revised their target price for the counter.
The rights issue could dilute DBS' earnings per share by 33 per cent and reduce its diluted book value per share, said Kim Eng analyst Pauline Lee in a note yesterday.
'Lack of earnings catalysts, coupled with the dilution from the rights issue, will likely depress the share price in the near-term,' she added, and lowered her target price for DBS shares from $13.10 to $10.60 under a 'hold' call.
CIMB analyst Kenneth Ng continued to rate DBS as 'underperform' and dropped the target price from $11.36 to $10.60. 'While the rights issue and DBS' underperformance have made us more positive on its share price in the short term, we believe that credit-cycle concerns make it difficult to sustain any outperformance.'
Among the four houses, Citi set the lowest target price of $8.00, down from $9.50.
Rights issues, especially discounted ones in a weak market, tend to be unpopular with shareholders. Share prices could fall because of the discount and also because shareholders wishing to maintain their stake would have to fork out more money.
On Monday itself, news of the rights issue caused DBS shares to sink to an intraday low of $8.81 before ending 48 cents down at $9.37.
But DBS' move won support from Credit Suisse, which upgraded the counter from 'underperform' to 'neutral'. 'DBS has been our least preferred among the three Singapore banks. However, the fresh equity would allay market concerns, lift pressure off DBS stock and help narrow the price-to-book discount vis-a-vis UOB/OCBC,' said its analysts in a note on Monday.
Standard & Poor's Ratings Services also said yesterday that the proposed rights issue would not affect its ratings on DBS Bank (AA-/Stable/A-1+). It recognised that the new funds would boost the bank's capitalisation, and help mitigate higher asset provisions that could arise from recessionary conditions in Singapore and Hong Kong.
DBS takes another hit as analysts lower targets
Shares fall despite S&P keeping stable outlook rating after news of rights issue
By EMILYN YAP
DBS Group shares shed a further 33 cents or 3.5 per cent yesterday to close at $9.04, as plans for a $4 billion rights issue prompted several research houses to cut their target price for the stock.
The slide happened even though Standard & Poor's maintained its stable outlook for the Singapore banking group after the news. The one-for-two rights issue, priced at a 45 per cent discount to the stock's $9.85 closing on Dec 19, would raise funds for the bank to strengthen its balance sheet and grow organically, said DBS on Monday. It also warned of lower fourth-quarter earnings.
Following the announcement, Citi, CIMB, Kim Eng Securities and JP Morgan revised their target price for the counter.
The rights issue could dilute DBS' earnings per share by 33 per cent and reduce its diluted book value per share, said Kim Eng analyst Pauline Lee in a note yesterday.
'Lack of earnings catalysts, coupled with the dilution from the rights issue, will likely depress the share price in the near-term,' she added, and lowered her target price for DBS shares from $13.10 to $10.60 under a 'hold' call.
CIMB analyst Kenneth Ng continued to rate DBS as 'underperform' and dropped the target price from $11.36 to $10.60. 'While the rights issue and DBS' underperformance have made us more positive on its share price in the short term, we believe that credit-cycle concerns make it difficult to sustain any outperformance.'
Among the four houses, Citi set the lowest target price of $8.00, down from $9.50.
Rights issues, especially discounted ones in a weak market, tend to be unpopular with shareholders. Share prices could fall because of the discount and also because shareholders wishing to maintain their stake would have to fork out more money.
On Monday itself, news of the rights issue caused DBS shares to sink to an intraday low of $8.81 before ending 48 cents down at $9.37.
But DBS' move won support from Credit Suisse, which upgraded the counter from 'underperform' to 'neutral'. 'DBS has been our least preferred among the three Singapore banks. However, the fresh equity would allay market concerns, lift pressure off DBS stock and help narrow the price-to-book discount vis-a-vis UOB/OCBC,' said its analysts in a note on Monday.
Standard & Poor's Ratings Services also said yesterday that the proposed rights issue would not affect its ratings on DBS Bank (AA-/Stable/A-1+). It recognised that the new funds would boost the bank's capitalisation, and help mitigate higher asset provisions that could arise from recessionary conditions in Singapore and Hong Kong.