Unsatisfactory reply from SGX Regarding SIAEC - Part 2

Oh boy, i sound like the mad dog who refuses to let go.

Actually, if they have read my blog, they would have realised i already checked the annual reports and also checked the funds JP Morgan holds.

Curious case of SIA Engineering

Sia Engineering - trying to make sense JP Morgan's sale

SIA Engineering and JP Morgan Asset Management

Unsatisfactory reply from SGX regarding SIAEC

The annual report reflects many nominee accounts who hold shares for people and one of these nominee accounts could be holding shares for JP Morgan. Most likely DBS Nominees or Citbank Nominees since they are the only ones who hold more than 38.8 million shares. 

I understand the rule that a shareholder, holding less than 5%, do not need to issue notifications as they are not substantial shareholders. 

This reply email from SGX doesn't tell me anything i don't already know. Perhaps, it adds to my curiousity only.

What i am curious is:

1) How come SGX through their stockfacts service is aware that Matthews own 22 million and Seafarer owns 10 million but not aware that JP Morgan owns 38.8 million shares?

2) Is there some form of market manipulation going on where major news are allowed to broadcast news but no one knows what's happening and no one questions? I mean if im a big  boy and just releasing such unverified facts to move a share price without any cost, wow, easy money.

3) Can SGX stockfacts be relied upon and trusted? 

Which points me to another question. Why does SIA not want to privatise SIA engineering since it already owns 77% and save on listing fees?

Lots to learn..lots to learn

SIA Engineering and JP Morgan Asset Management

I understand that SIA Engineering was dropped as a STI Component on 1 Sep 2017 and this remains the most possible explanation for now, though lingering doubts remain.

The Curious Case of SIA Engineering
SIA Engineering and try to make sense of JP Morgan's sale

Based on SGX website, the Edge Singapore mentioned JP Morgan Asset Management Real Assets (Singapore) Pte Ltd, so i went to google and it brought me to a list of funds managed by JP Morgan Asset Management.

The most likely place a stake such as SIA Engineering would be hiding in would be in the following 3 funds.

JP Morgan Funds - Singapore Fund (Total fund size of USD63 Million)

JP Morgan Funds - Singapore Fund

JP Morgan Funds - Asean Equity ( Total fund size of USD433.9 Million)

JP Morgan Funds - ASEAN Equity

JP Morgan Funds - Asia Pacific Equity (Total fund size of USD 919 Million)

JP Morgan Funds - Asia Pacific

Based on the total fund size and top ten holdings, it is impossible for SIA Engineering to be among the list of funds above, unless they bought it after July 2017. The traded volume, however, does not correspond to this hypothesis.

Maybe, it is in the other entities of JP Morgan. Anyhow, let's see what SGX emails back with.

Curious case of SIA Engineering

Straits Times reported a massive selling of 38.8 million shares in SIA engineering by JP Morgan. This likely being the reason why it plunged 6% to $3.15.

BUT................A look at the Twenty Shareholders breakdown in their latest Annual Report shows Singapore Airlines Limited holding on to 77.72%

JP Morgan is not in the list. So where did JP Morgan get 38.8 million shares to sell?A look at SGX website Stockfacts on 04/10/2017 also shows JP Morgan not in the list.

The next biggest shareholder is Matthews , holding 22,873,500 shares which is much lesser than JP Morgan's short sale volume of 38.8 million. How do i make sense of this? Are the facts of the reporting wrong? Did JP Morgan borrow shares to short this counter? How did JP Morgan get 38.8 million shares unless Matthews ,Seafarer and some others combined to lend them the shares? Matthews and Seafarers don't seem to be subsidiaries of JP Morgan, based on my brief check on the internet .Will see the short sale report tmr. 

I just stopped eating my prawn mee soup and added some shares to my existing collection. Given its recurring free cashflow, no debt, 4 plus% dividend yield, again, its a sin not to buy since stocks are like rubber band.

Haven't been following this counter for years but a brief search on the internet word says about new aircrafts needing less maintenance, hurting SIA engineering. DBS research in July 2017 noted in their report about a potential catalyst regarding a merger with ST Aerospace or privatization with SIA. ( huh where did this thinking come from?? I can't find any supporting evidence.) . Anyhow, let's hope for the best!

Analysts: Suvro Sarker and Glenn Ng
Source:dbsvickers.com

Playing It Safe.Growing it Slowly But Surely With a Peace of Mind.

Ok yeah we haven't been updating for soooo long but well...we needed a break. Anyway the meteoric rise of the stock market makes us sick in the belly as we just didnt have any bullets left to pump in. Haizz...just spraying some water guns here and there..pathetic!!!!!Well guess there is a season for everything and we should be thankful. Anyway, now we have got some money and October does seem to be a potential month where stocks are likely to go down after the euphoria. Why do we say this?
Looking at the Baltic Dry Index which according to Wilkepedia is :
"An assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a timecharter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain." It has been going down since June 09 and some stocks are being squeezed into a tight consolidated range between the bollinger bands which classically signifies a impending move.Besides it well know that in Sep and Oct stocks do dip statistically.

But oh heck with it. We just bought some SIA Engineering and SMRT shares recently and yes we are impatient and thats bad ...really bad..illogical and unwise.Simply put...stupid.Anyway, as fundamental investors, we dont try to catch the bottom nor the top. We just wanna catch NEAR the LOCAL bottom or LOCAL top and we are in heaven. Hope nothing unforseen happens!So why these seemingly boring stocks. SMRT..what the heck!

Frankly, we did consider buying SMRT since March April of 2009 and we dismissed it in favour of other stocks as we couldnt see much growth then, other than a very very stable business sans a terrorist attack. But the news that it recently was able to sell some bonds at a low 2 +% interest caught our eye. The news that it recently concluded an acquisition of a 49% stake in China's Zona Group caught our eye. The knowledge that a certain director bought some shares in August 2009 at $1.73 made our eyebrows twitch. ( though its only 10,000 shares lah).Looking at the past dividend yield, it has been steady and increasing too and we having taken lots of MRT lately...its a super cash cow, ready for overseas expansion with their Singapore business as an ATM machine. Just look at the army of corporate warriors going to work every morning being squeezed like sardines.......One thing about this business though is that it is highly regulated by the government to keep the cost of living affordable to the majority. Anyhow..worst case we treat this stock like buying a bond, best case, it expands more aggressively overseas to justify a higher stock price and/or higher dividends.Basically, we think it the best tranport stock to own in Singapore.

So how about SIA Engineering? We figured that Singapore is becoming the center of MRO in Asia Pacific with the government paying special attention to this area. We also figured that the Singapore Airlines Group of company which comprises of Silkair, Tiger Airways, Virgin and SIA already provides a base of recurring clientship for this company. In addition, SIA is noted for being at the forefront of flying new planes like the A380 which means SIA Engineering got expertise compared with her peers. Anyhow, having briefly a stint in the aviation industry, we do think that this is a kind of engineering work where people dont just outsource to low cost countries or companies as the consequence of a shabbily done job is catastrophic. We also think that this company will be one of the beneficiaries of the spillover effect from the casinos in Singapore....OK we also noted the following...

Options were granted to employees with an exercise price of $2.25 - $4.67 to be exercisable from 2006 - 2018 and the current price now is about $2.59. Sounds pretty decent with a quite high dividend yield of 6.15% with a quite steady historical dividend payout. Well...why not...besides their ratios are fantastic.

Oh well...discipline my friend..we are working on it. Luckily, we still have some bullets left for the rest of October. Let's hit the low. Its just a game..

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Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team