Tiger Airway Holdings Ltd

Tiger Airway announced offer of 1 for 2 renounceable rights issue up to 273,423,930 new ordinary shares at issue price of S$0.58 per Rights Share. This is at discount of approximately 39% to the last traded price of S$0.955. The theoretical ex-rights price of S$0.83.

After rights issue, their net tangible asset increase to S$0.395 from S$0.309. EPS also will also improve from (3.8cts) to (2.5cts). Budget airline is a high growth industry, however, competition is also very intense. The recent negative impact on Tiger Airway's business in Australia definitely deal a heavy blow to their revenue. It also affect their already poor branding. Those whom already holding Tiger's shares will be facing selldown in coming weeks. Those whom looking to buy should wait longer first.

spikesandcurves recommends a sell on Tiger Airway based on two factors. In near term, their revenue grow will be weak or even making losses. Secondly, there is not catalyst to warrant a strong support. Risk reward factor does not justify a buy at all. However, we also feel that after their rights issue, and some recovering period, Tiger may look attractive if business improves together with a better economy outlook. Target price S$0.66, a 20% discount of theoretical post rights price of S$0.83.

Sabana Shari'ah Compliant REIT

Sabana Shari’ah Compliant REIT is a real estate investment trust constituted on 29 October 2010 under the laws of Singapore.

Sabana Shari’ah Compliant REIT is established principally to invest in income-producing real estate used for industrial purposes in Asia, as well as real estate-related assets, in line with Shari’ah investment principles. The initial property portfolio of Sabana Shari’ah Compliant REIT comprises 15 industrial properties located across Singapore.

Sabana Shari’ah Compliant REIT is committed to distribute 100.0% of its Taxable Income and taxexempt income, if any, for the period from the Listing Date to 31 December 2012 and thereafter to  distribute at least 90.0% of its Taxable Income and tax-exempt income, if any (after deduction of applicable  expenses).

2nd Quarter Highlights

Things to note:

• High Occupancy Rate over all their properties: 14 out of 15 property achieve 100% occupancy rate. With average lease expiry of 3.2 yrs.
• Net Asset Value at S$0.98
• Forecast yield based on current share price of $S0.85 is 10.1% p.a 

Due to the unstable economy outlook in the US and EU zone, REITs may offer a better and safer way to park your capital with. Sabana Reits focus on Singapore industrial properties will offer stable rental income for its unitholders. spikes&curves recommends buy on Sabana Reit. 

Market Review 6 Aug 2011

Over the past two days, global stock markets had been seriously whacked down by investors and traders. There was no cheers from the news on lifting the US debt ceiling, instead fears were all in the investors mind. Late on friday US time, Credit rating agency Standard & Poor's on Friday downgraded the credit rating of the United States, stripping the world's largest economy of its prized AAA status.


Few weeks ago, I had already declared bull market is over. In fact, if you could see, most of the stocks on SGX were correcting since as early as 2010. The STI has been maintaining its bull mainly due to certain strong component stocks holding STI up. 

  

As you can see, the current indicies are still traded quite high. Judging from the Euro and US debt problem, likely chance that soon they will be going into another round of recession. Which mean asia market more or less will be affected too no matter what.


Therefore, spikes&curves investment stunt is rather conservative at this moment. Those large drop may present short term trading opportunities. However, we recommend to take profit as fast as possible.