Singapore Airlines: A potential excess rights play?

In my previous post, I shared on what are the steps required for SIA shareholders who are not intending to put thousands of dollars more into the beleaguered airline. Yes, I'm calling it for what it is, beleaguered.

Over here, I'm going to touch on a potential trading strategy that could benefit some holders who have extra cash on hand. Before I begin, I need to highlight that this strategy contains a fair degree of inherent risk, and readers should do your due diligence to assess whether the risk and outcomes associated with this strategy are suitable for their investment profile.

Singapore Airlines Rights Shares and Rights MCBs

Many of us may own SIA shares, or probably knows someone who does. The ongoing Covid-19 pandemic has hit airlines around the world in a manner never seen before, and SIA has not been spared.

The recent rights issue is fairly complicated, and I want to outline the implications here. The key takeaway is that Doing Nothing Will Hurt You Greatly. Read on to find on why.