SIA    Last:6.81    -0.04

SIA

sorry, missed out the word 'last year'. It should read:

"although it was the only money losing airlines among the big three airlines in China LAST YEAR".

 

probably confirmation of China Eastern Airline which will offer a huge domestic (china) networks/flights/markets to SIA. China Eastern Airline has recently turned profitable although it was the only money losing airlines among the big three airlines in China.

 

up $0.40!!!

good news coming?

 

China Eastern Airlines won preliminary approval to sell a stake to Singapore Airlines, but final approval will probably take at least another two weeks to complete, as the deal needs to be sanctioned by at least five departments under the State Council.

? Singapore Airlines and parent Temasek Holdings plan to buy about 25% of China Eastern, said Li Fenghua, the Chinese carrier's chairman.

? Meanwhile, CEA also expects to return to profit in the first half of this year and post full-year net income of at least Rmb200m, its first full year profit in three years, as China's economic growth boosts travel demand.

 

China Eastern Airline has been granted preliminary approval to sell 25% stack to SIA (20%) and Temasek Holdings (5%).

The deal would give SIA a key foothold in China, home to one of the biggest and fastest growing airline market in the world.

 

Singapore Airlines has agreed to buy 20 A350XWB-900 planes worth US$3.7b from Airbus. The delivery will start in 2013.

SIA has retired five Boeing 747-400s and added nine Boeing 777-300ERs.

It also ordered 20 Boeing 787s and nine more A380 superjumbo planes.

 

 

spurs88,

Aaiyah!1 First you insinuate that I try to talk down the price of SIA.

Now, you call me a pessimist......

In my post of 5 June 0834 hrs, my statement about Air NZ and Virgin Atlantic is a known fact........SIA paid too high a price and it has not shown the expected ROI. In fact, they have all but written off their investment in Air NZ.

My comment on the pending investment in China Eastern, I pointed out that for the investment to succeed, it is vital that SIA gets management control......does that sound like pessimissim??

My comment that I won't enter at current price ($18.40) but would rather wait and see......does it sound pessimistic???

In the English language, there is a whole lot of difference in the meaning of pessimism and caution.

In that post, yes, I was advocating CAUTION but I was certainly not pessimistic.

 

spurs88,

 

Firstly, you said "Don't sell stocks with good fundamentals", then you said "I personally never believe in TAs or FAs". BTW, FA stands for Fundamental Analysis. Contradictory?

Secondly, and importantly, your entry price is btw $9 to $15 are way above the current level of $18.5. The question is: will you buy more at this level? If not, end of arguement.

That's the question solochn is asking. If the SIA (hypothetically) drops to $17 for some reason, you are still making quite a handful. However, it will be a LOSS to someone who entered at 18.50. If SIA trades range bound at around 18.50 for the time being, then there's no compelling reason for anyone to  enter, especially if that person has a short term time frame of 1-2 month. It is another story if one enters based on FA with very long timeframe

 

I don't think anyone here is a doomsayer. Did anyone say it's going to drop below current level? Read the posts carefully before making accusation baselessly.

 

x 0 x 0

I can't agree more with spurs88. Don't sell stocks with good fundamentals based on what doomsayers had to say as more often than not, they may have other hidden agendas. I personally never believe in TAs or FAs     hey u got clone acct ah?

 

I can't agree more with spurs88. Don't sell stocks with good fundamentals based on what doomsayers had to say as more often than not, they may have other hidden agendas. I personally never believe in TAs or FAs.

 

I very much agree with Shplayer,...

Our "FA da ge"... :)

 

shplayer

Don't be too pessimistic with your view as it could mislead novices to sell and lose unnecessarily. I bought this gem all the way from $9 to $15. Am still holding as I believe it can shoot pass $22 soon, just like when many were shouting for sell on Semb Marine, I was buying all the way from $0.80 to $2.5. Eventually sold all recently at $3.5 (for a tidy profit of $100k plus) as this was always what I thought as the fair value.

So to those who are thinking of panic-sell, my advice is to look at the fundamentals again and don't sell just because someone keep posting pessimistic view.

 

 shplayer! go shplayer go.

 

spurs88,

Forumers are not trying to talk up/down any counters. Even if that is their intention, I don't think we can make much of a dent in the market. We are just sharing our opinion......whether you accept it or not, it will be appreciated if you refrain from accusing forumers of manipulative intentions.

If you look at 3 years ago, many other counters were half or less than half of today's price....so what so special about SIA doubling its price???? In fact, I can quote off hand several counters that have more than doubled their price in the past 3 years......that will show you that SIA is a laggard and your investment choice was not that astute.

At the risk of being accused of talking down the market, I think SIA's price will continue to hover around this level ($18.40) due to the pending share buy back at $18.46.

 

Those who believe what those who tried to talk down this gem should think again. 3 years ago when SIA was hovering around $9, many were predicting that SIA shares would go down even further with the onset of budget air. See what happened?

In fact UBS had just increased SIA's target to $23.5!!!!!!!! So hang on for another few weeks and let those wanting to buy cheap wait LONG LONG!

 

SIA's track record of investing in other airlines has been quite disasterous.....aka Virgin Atlantic and Air NZ. But, those were during that former CEO's time. Lets see if this new CEO can do better at integrating its new acquisition......but my opinion is that, unless SIA gets management control of Eastern Airlines, it will be very difficult to pilot the Chinese carrier to success without being in the cockpit.

Although I am vested (from IPO days), I too won't go in at current levels. I would rather wait and see.

 

eastonbay; i do share the same view with u...besides (i) sia may to spend much more $$ in restructuring china eastern and god knows what and how the returns would be?? (ii) the poor state of the china aviation industry today (iii) sia does not has a good track record in these sort of investments...remember air zealand, annset....also sia attempts at the india domestic market..the hundreds of millions that went down the drain....(iv) i bought sia at $15+ (year 2002)....saw it went down $11 at one stage....and begining this year sold  it  off at $16.....(v) i believe $18 (minus china eastern) is a fair price to pay

 

 

Thanks for the advise! Guess I made a bad move this time round, will cut lost and let it go if it goes down to $18.00, if not I will just hold on to it. You win some you lose some. :)

 

solochn: personally I will not invest at $18. Yes, China Eastern Airlines will bring forth China Domestic Market for SIA. However, one must remember it is the only $$ losing airline among the big 3. It is rather a uphill task for SIA. A lot of restructuring work to do. It may take a few years to see results.

 

Actually it has gone up pass $19 (around 19.50) but that was in response to the dividend announcement. It has since dropped back to $18+ level.

 

I'm already in that's why I stayed invested. My cost is $16. Like what cks said, there are other better opportunities around.