Following SIA’s volatile trading last week when it issued rights to raise S$15B through equity and mandatory convertible bonds, some friends have asked if they should invest in SIA now at close to their 52-week low, or if they should subscribe to their rights issue.

I actually don’t know, and it doesn’t matter, because I invest and not speculate.

Notwithstanding Eagle’s Hospitality Trust’s notice of defaults and voluntary share suspension, locking shareholders out of the market despite falling close to 82% from its IPO price following escalating troubles, Chinese Starbuck’s competitor Luckin’s Coffee financial fraud wiping 75% of its market value.

This follows other popular corporate failures such as Enron’s bankruptcy saga in 2001 and Hyflux’s bankruptcy in 2019.

These are just several cases that are publicized in the media. When investing in individual stocks, investors are exposed to security selection risk