Passive Loss

 I'm sure we've all recently seen the myriad of news article headlines highlighting the Silicon Valley Bank (SVB) Collapse  that arisen from a bank run, with many people drawing comparison between it and the 2008 Lehman Brother's collapse. Additionally, if you're into Cryptocurrency, I'm sure you've realised the sharp drop of the crypto market recently, along with USDC (Celsius) losing its peg, which is rather natural given the fact that it has a large amount of collateral with SVB.  Source: RTE News In this short article, I'm not here to explain what happened that led to the collapse, since many articles have already done a great job of that. Instead, I'm here to discuss the potential ramifications regarding the recent  unprecedented move  by the US Government that ensures all deposits in SVB would be guaranteed by Monday, which is today.  The reason why it's unprecedented is the fact that the guarantee includes deposits over $250,000 in US Dollars...

 Apologies if this post seems rushed, but that is mainly due to the fact that this is probably one of the most exciting ongoing stock developments right now in SGX! It is no secret that there has been a spectacular implosion of Keppel Corp's (SGX: BN4) share price from $7.34 to $5.49 in a singular day due to becoming Ex Entitlement! At Sembcorp Marine's current share price of 0.126, it has resulted in new shareholders not being entitled to $2.41 worth of Sembcorp Marine shares per Keppel Corp share.  Indeed, the price drop does seem scary when I woke up to a loss of almost $600 SGD. In response, I have sold all my other holdings and have gone all in on Keppel Corp! I will be illustrating why I have done so in this brief article today.  Firstly, with the divestment of the O&M division, there is no denying that there will be a material negative impact on earnings moving forward.  We can see that after the divestment of Keppel O&M, Pro Forma Diluted EPS will be ...