Chan Kit Whye on TIGER AIR, LINC ENERGY

Prior to his retirement, Chan Kit Whye (left) worked more than 30 years as Regional Finance Director, Financial Controller and Manager in a multinational specialty chemical business. He has played an active role in CPA (Australia) Singapore Branch, taking up positions in its Continuing Professional Development and Social Committees. Kit Whye is a Fellow of CPA Australia, CA of Institute of Singapore Chartered Accountants and CA of the Malaysian Institute of Accountants. He holds a BBus(Transport) Degree from RMIT, MAcc Degree from Charles Sturt University and MBA from Durham Business School.

Tiger Air made an announcement of good news and bad news.

Good news is that it will sublease its 12 unused aircraft to InterGlobe Aviation Limited (IndiGo) for between 3 and 4 years, which will improve its cash flow by about $45 million a year.

Bad news is that the company will take a $93 million one-off provision relating to these aircraft.

Another piece of bad news is that the company is "reviewing various funding options (including the possibility of a rights issue) to proactively strengthen its balance sheet and meet its general corporate funding requirements."

Overall, my view for this stock is still very bearish and negative... but how low can this share go?

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Given the current overcapacity situation in the industry, TigerAir will sublease 12 aircraft to IndiGo at a discount to their original lease rates. However, compared to the idling of these 12 aircraft, this sublease agreement will significantly reduce the Group’s cash flow burden by about $162 million over the sublease periods. NextInsight file photo

Linc Energy: Genting Strategic exercised its option to purchase 10.75 million Linc Energy's shares at S$1.20 a share. That was last June 2014 when the price was $1.20. I wonder what is Genting going to do with the poor performance and results announced by Linc Energy.

The share has price dropped below 1.00 but that's purely a selldown by retail investors. This stock is now purely a technical play and lack sound fundamentals..

Yesterday's close at 0.96 with high volume signals a very bearish trend for this stock. Genting Strategic now is suffering a 20% loss or $2.58 million. I wonder what Genting is going to do about it. The loss is purely based on Genting's recent take up of the share option.

Genting initially took up 47.85 million shares of Linc Energy at 1.20 as a cornerstone investor.

Deep pockets aside, my belief is that a strategic investor must be managed by persons who has foresight, do the homework thoroughly and investigate into offers for strategic stake. After all, they are accountable to the stakeholders and must give a good explanation as to why the investment turn sour and what needs to be done to contain the setback. I don't trade. I am a long-term investor, that is why I place my concern here.

Recent story: LINC ENERGY: Losses mount but someone's buying the stock!