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Wednesday, October 8, 2014

My ex-colleagues and SIA shares

There is a saying that "by the time I have money to burn, my fire will have burnt out" is quite true to many of us.
Many of my former colleagues who are now in their sixties are starting to spend their money which they have earned and saved. Some do not have the opportunity to do that due to sicknesses and their early exit from this world.
There are a few who are multi millionaires due to thrift and inheritance from their parents. I know of a few who are sick and almost immobile due to illnesses. They are spending a lot on health care.
Yet there are many who are trying to be "young" again . They boast about their sexual prowess (of course with the help of Viagra and Tongkat Ali etc). I know of one who has a 20 something year old mistress. Come on be realistic because at 70 why would a young woman wanna hang around you?
The answer is simple: it's your money she is after and after all an old man "can't hurt much".
Remember the case at a Ang Moh Kio spa whereby a man of 50+ was alleged to have murdered his relatively young China woman in 2006 for loving a younger man?

Just to deviate a little I now wanna talk about how some of them had so much wealth (besides inheritance and thrift). It's SIA who made them rich.
In the 1970s SIA gave all employees share option. The staff was given the opportunity to buy the SIA share at S$1 a piece. Many junior staff did not exercise the share option and it resulted in the senior ones taking over the option.
In 1980s, SIA floated its shares and those who bought them directly from SIA made a lot of money.
Just a simple calculation, if you were to buy 10,000 shares over a number of years at $1 each, you would have paid $10,000 (One was allowed to take a loan from SIA at very low interest rate). After listing in the stock market, the share went through a split or bonus issues as we called it. I think the shares spilt twice. In essence, if you owned 10,000 shares back then you are now the owner of 40,000 shares.
Many sold their shares at an average price of $15. For those who sold all the 40,000 shares at $15 per piece,they would have collected $600,000. And this was in the 1980s and 1990s. Assuming they've invested all the 600k in a house, they would by now been millionaires. A house that cost 600k in the 80s is worth $3 million or more now.

I know of many in cabin crew who owned more than 100,000 SIA shares in the early days. The pilots especially the captains owned more, perhaps 200,000 to 300,000 shares. The senior staff in the Engineering division acquired a lot of the shares too.

Today, SIA share price has come down a lot compared to the early years of floatation. Many of the staff have sold their shares to the public. Well someone has to "carry the baby" so the saying goes.

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