Daily BriefsSingapore

Singapore: Sembcorp Marine, Jardine Cycle & Carriage, Manulife US REIT (MUST) and more

In today’s briefing:

  • One More Day To Trade Sembcorp Marine Rights, Harvest the Spread, or Buy The MGO Option
  • StubWorld: JCNC Is A Set-Up Here
  • Manulife US REIT (MUST SP)

One More Day To Trade Sembcorp Marine Rights, Harvest the Spread, or Buy The MGO Option

By Travis Lundy

The Rights of Sembcorp Marine (SMM SP) started trading on 31 August, trading rich the first day, as expected, then falling. After closing at half a cent on the first day of trading, they are now trading at 0.001-0.002 despite Sembcorp Marine shares trading at 8.5-8.6 cts. 

If there were borrow on SMM left, it would be a great arb.

As it is, every long-only holder who is UP money in their portfolio should, if they can, sell the SMM shares and replace with SMM Rights. It will give them a 5% spread on their SMM shares. 

They have the rest of today and tomorrow to trade. 

There is also an “MGO Option.” And this bit is interesting.

StubWorld: JCNC Is A Set-Up Here

By David Blennerhassett

This week in StubWorld …

Jardine Cycle & Carriage (JCNC SP), relative to Astra International (ASII IJ), is around record-lows outside the Covid-affect low last year. This is occurring amid recent corporate developments within the Jardine stable of companies.

Preceding my comments on JCNC are the weekly setup/unwind tables for Asia-Pacific Holdcos.

These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold – the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent – of at least 20%.

Manulife US REIT (MUST SP)

By KGI Securities

  • Upgrade to Outperform. US office properties are likely to see improving demand as more employees return, even if it is on a part time basis. Improving fundamentals may finally lift investor confidence in the sector.
  • MUST provides an excellent proxy to ride on the “return to office” theme in the US, while offering an attractive 7.4% forward dividend yield.
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