$Seatrium (S51.SG)$ Like to share a story I read with Seatri...
$Seatrium(S51.SG$ Like to share a story I read with Seatrium Shareholders since this stock is on my watchlist. Let me emphasize that as of today I do not yet have a position in Seatrium though that might change after their result announcement next week. If you give everyone in SG (assuming 6M people) a 1 dollar coin for them to flip, and at end of each day a computer will announce result, and the winner will get all the money from loser, at the end of 10 days, there will be 5800 people who would have gotten 10 right guesses in a row and made 1000 dollars. At the end of 20 days, there would have been only 5 winners left but they would have gotten 20 answers right and become millionaires. They would probably write a book and flaunt how lucky or what analysis they used to guess 20 answer correctly. But what does that proof? I think most of you should know what I am trying to imply. Seatrium is at the moment a loss making counter with high debt. Company has issued profit guidance and 2023 losses will be worst. This is probably the first result after Keppel/SM merger and they are probably done with restructuring hence writing down loss making assets since company probably need to take a very bitter medicine for it to become profitable or viable. We do not know the plan yet hence unless you are an insider, you should not be buying this prior to their result/restructuring plan since you need these to do analysis and risk management. Otherwise you are just gambling heads or tails and there will still be a lot of you getting / gambling correctly. What if they decide to do Rights again to shore up their cash reserve or pay short term debt? Do you have enough cash to sub? Dont get me wrong, this counter may even spike or tumble 10-20% after result and it is fine even if you miss this jump since most people lose money trying to bottom fishing. Without knowing your risk or having any facts, it is very risky to trade in the stock market hence if you are yet invested, it is better to wait for next week before you decide. Keppel OM was a good company, lets hope the new management could save Seatrium
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Value investing takes a lot of work but carries you a long way and makes more money than any other strategies
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Shootingstar : I find it is very strange that this debt thing all belongs to one entity. Seatrium owes keppel but dun they all belong to the same parent company? If they want they could just write it off or slowly pay it back behind the scenes. If their share price is stronger I believe they would be able to get more contracts by having a better reputation perhaps.
Shootingstar : Or is temasek unable to keep the bosses of keppel under control?
cowpehcowmooOP jkak: Let us not argue and name calling without knowing my portfolio. I am not here to talk everyone down and proof to everyone I am smarter than all because I am not. But be aware that what you mentioned was suggested in my earlier as well and the fact is, we all are ikan bilis and there is always things to learn and only share facts. I dont gamble with my money and only invest if a counter is under value with improving cash flows, good management/plan, industry or general market outlook, and if risk is within my ability to accept. If you are buying because you have insider news then congrates as you will be ahead, otherwise its akin to guessing bottom (and dont get me wrong since you could be one of the five) and gambling your money without any factual insights. Otherwise it is better to invest in this stock after you did all the above and even if this stock were to jump 15 20% after announcement, and if this 15 20% is still lower than the value, then buy it knowing that you can sleep well at night on the long term even if it means you lose out on the initial upside to those who gambled with their guts or gut feel