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24-10-2014, 04:21 PM
http://www.valuebuddies.com/thread-4576-...l#pid97333
Read the above link and you will have a better understanding of the flushed out that resulted in the recent global volatility.
Sing Post is perceived to be a safe haven counter with BABA growth.
IMHO, I think SingPost share price performance underpinned by e-log will be shaping up for disappointment down the road.
E-fulfillment is a high capex and labour intensive business. Capex to be invested on logistic centres and fleet and the labour involved in delivery is something that BABA as an asset light middleman doesn't have. Hence while BABA thrives on volume, SingPost as a E-fulfillment company will be bogged down by rising A and higher E (ROA, ROE). Conceptually, BABA thrives on asset turn but BABA needs plenty of logistic operators to help them thrive in that role.
Sing Post happened to be that operator. In any event, traditional mails will continue its slow death hence e-fulfillment is an essential business that Sing Post need to transform.
Globally, funds are flushed and hence when everyone buys a certain concept, then a bubble is forming. Note that offshore and marine sector is out liao and can be for quite a while. Hence the amount of $ free up can be mind boggling at least within an illiquid mkt like SGX.
Odd Lots
Cert Vested
GG
Read the above link and you will have a better understanding of the flushed out that resulted in the recent global volatility.
Sing Post is perceived to be a safe haven counter with BABA growth.
IMHO, I think SingPost share price performance underpinned by e-log will be shaping up for disappointment down the road.
E-fulfillment is a high capex and labour intensive business. Capex to be invested on logistic centres and fleet and the labour involved in delivery is something that BABA as an asset light middleman doesn't have. Hence while BABA thrives on volume, SingPost as a E-fulfillment company will be bogged down by rising A and higher E (ROA, ROE). Conceptually, BABA thrives on asset turn but BABA needs plenty of logistic operators to help them thrive in that role.
Sing Post happened to be that operator. In any event, traditional mails will continue its slow death hence e-fulfillment is an essential business that Sing Post need to transform.
Globally, funds are flushed and hence when everyone buys a certain concept, then a bubble is forming. Note that offshore and marine sector is out liao and can be for quite a while. Hence the amount of $ free up can be mind boggling at least within an illiquid mkt like SGX.
Odd Lots
Cert Vested
GG