Will Tiger Airways be on SGX watchlist?
Tiger Airways will most probably be announcing losses for three consecutive years judging from the keen competition among budget airlines and another rights issue. However, as SGX rules state that :”The Exchange will place an issuer on the watch-list, if it records:—
(1) pre-tax losses for the three (3) most recently completed consecutive financial years (based on the latest announced full year consolidated accounts, excluding exceptional or non-recurrent income and extraordinary items); and
(2) an average daily market capitalisation of less than $40 million over the last 120 market days on which trading was not suspended or halted.”
Tiger airways may not be put in the watchlist because its market capitalisation is higher. However, that does not mean that it shouldn’t be on investors’ watchlist as turnaround will prove to be difficult. Buffett warned investors who are thinking of investing in airlines. One joke is :”How to become a millionaire. Start as a billionaire and then buy an airline.”
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