Tiger IPO

Tiger IPO

Backgrounds:

1. Tiger’s controlling shareholders, Singapore Airlines and Temasek, the city state’s investment agency, are not selling any shares.

• Public response - WAHHHHH SIA and Temasek = damm bloody safe
• think again! can they sell their shares anytime they want? no matter if its 49%
• look just what happen.....

"19.8m shares would be sold by RyanAsia, controlled by the founding family of Ireland’s Ryanair budget carrier, which held a 16 per cent stake in Tiger Airways." - why sell?

http://www.ft.com/cms/s/0/d598a0d6-039f-11df-a601-00144feabdc0.html?nclick_check=1

2. “While Tiger has a solid backer in SIA, investors are unsure it has the same ability to deliver the profits and growth that are synonymous with the Singapore flag carrier,” Mr Yusof said."

• SIA make profit is NOT = to Tiger make profit
• Besides SIA is not exactly making profit all the time

3. Why issue IPO?

• Said to : The IPO will provide Tiger with S$233m before expenses to help finance the acquisition of up to 51 new Airbus A320 aircraft by 2015, adding to its fleet of 17 aircraft. The airline has bases in Singapore, Melbourne and Adelaide.

• notice? EXPENSE First than finance acquisition?
• so what is under expense?
• LOOK AT Tiger's profit and loss statement

http://singaporenewsalternative.blogspot.com/2009/12/tiger-airways-posted-net-loss-of-s51.html

TIGER Airways Australia lost more than $50 million in its first full financial year of operations, dragging its parent company into the red after wiping out a small operating profit from the Singaporean operation.

Tiger Aviation posted a net loss of $S51m ($40m) in the year to March 31 compared with a $9.8m profit the previous year and its cash reserves slumped from $S33.4m to $S13.2m.

The airline confirmed yesterday that the Australian operations posted an operating loss of $50.1m.

The worse than expected result came despite optimistic talk of growth in Australia and a boost in group revenue from $S304m to $S378m. Tiger's Singapore operations declared an operating profit of $S12.2m.

Tiger Airways group chief executive Tony Davis said the airline was pleased with the Singapore result and that the Australian losses had been anticipated.

• yeah so it was economic crisis - hence the loss, and its not a significant loss compared to the billout that US is using right? = bull shit in my pt of view. what are the reasons for the IPO? think again..... even then is a loss making firm suppose to be asking a price of $1.58 (closed on fri) ?

4. Back ground knowledge - Price of the stock is calculated in a simple way by factoring in the cash flow in future years divide by interest rate (perceptual). So cash flow predicted to be not a loss and profit in the future? NOT bad. *pui*

there are some other news i heard. but not convenient to share. but its reliable.

So here is my suggestion to all my nicer 20 odd regular readers out there

SUGGESTION:

Although its a little too late. Initially i was gonna blog not to purchase IPO but i was caught up with sch work. So now, my suggestion is if you really want to buy, buy it from open market only after the craze is over. foresee it will drop lower than issue price.

how soon. i dunno. depends. but this one is quite a big gamble. RISK lovers. its your chance (:

Baby asked me abt JAL. Told him my stand was that they may announce bankrupt and delist, so dun buy their stock.Govt will not save them anymore. its really a big risk.

True enough, my intuition was right. KAOZ i am quite good at guess eh. hahaha

want to hire me as investment banker? ahhhh too bad, i do accounting and finance one. (: so finance is not my core, and i m just lucky (:

Cheerios.

eve out