Lo and behold.
ASX side has rallied from low of A$0.07 to A$0.082 now, whereas SGX side has only rebounded from S$0.091 to S$0.094.
The gap has narrowed to within 20%, from 37% earlier tbhis morning.
It was better to buy ASX side.
This is AMAZING.
ASX side is trading at A$0.072 (S$0.068) only!
Yet SGX side is trading at $0.092.
There is a huge 37% GAP for arbitrage!
The gap had hovered around 20% in the past few days, but today it widened alot.
Sell SGX, Buy ASX.
Not sensible to be buying SGX side (if its worth buying at all).
In commodity business, you can have strong commodity price and still deliver reasonable profits with weak management. You can get extraordinary profits in the same scenario with strong management. Conversely, a weak commodity demand/supply equilibrium with strong management will deliver medicore result. A weak management with weak commodity market is a double whammy and double trouble. You can determine for yourself which one does Alita fall into.
Now, I'm careful about the loan facility and its covenant describe in the update- sounds like things are rather tight now. Nonetheless, I have established a position during the tremendous selldown this week, after a long wait for almost a year.
Lo and behold.
ASX side has rallied from low of A$0.07 to A$0.082 now, whereas SGX side has only rebounded from S$0.091 to S$0.094.
The gap has narrowed to within 20%, from 37% earlier tbhis morning.
It was better to buy ASX side.
Reply to @Sweeswee : True, am buying both sides
This is AMAZING.
ASX side is trading at A$0.072 (S$0.068) only!
Yet SGX side is trading at $0.092.
There is a huge 37% GAP for arbitrage!
The gap had hovered around 20% in the past few days, but today it widened alot.
Sell SGX, Buy ASX.
Not sensible to be buying SGX side (if its worth buying at all).
In commodity business, you can have strong commodity price and still deliver reasonable profits with weak management. You can get extraordinary profits in the same scenario with strong management. Conversely, a weak commodity demand/supply equilibrium with strong management will deliver medicore result. A weak management with weak commodity market is a double whammy and double trouble. You can determine for yourself which one does Alita fall into.
Now, I'm careful about the loan facility and its covenant describe in the update- sounds like things are rather tight now. Nonetheless, I have established a position during the tremendous selldown this week, after a long wait for almost a year.