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Strategies & Market Trends : Singapore

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To: Roger Greene who wrote (18)9/7/1997 10:21:00 PM
From: Tom   of 20
 
Yes, premiums for F shares listed on the Stock Exchange of Singapore are fairly consistent. Events of recent weeks have provided an exception.

Companies that have issued F shares must report periodically to the SES on the active number of those shares. The SES is in possession of those reports. The cutoff is 49%.

My previous post was intended to provide an historical look at the events after issuance that contribute to the run-up in price. My experience has been that future issuance, if any, is normally accomplished via a bonus to current shareholders. In that case, the price may be discounted from the market.

Local investors have certainly had sufficient recent opportunity to arbitrate F and L share prices. A significant number have been made poorer in the process.

For my part, as a long-term investor in SIA, I am satisfied for those recent events that have permitted me to purchase additional shares at less than fair value.
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