ST Engineering

[KopiKat]

STEng FY11 results will be out today. Just for fun, I'm guessing the 2H11 Dividend to be slightly higher than 11.55ct (2H10), using the EPS of 1st 3Q and last 2 years' payout ratio of ~90%. My 'crystal ball' predicts a range of 11.73ct to 12.28ct.

Results are out.

http://info.sgx.com/webcoranncatth.nsf/V...D002F6264/$file/STENGG_FY11_Release-23Feb_FINAL.pdf

http://info.sgx.com/webcoranncatth.nsf/V...D002F6264/$file/SGXNET_FY2011.pdf

Slightly better than what I was expecting.

Div = 12.5ct (1.8% above my upper limit of 12.28ct)
Payout Ratio is ~90%, same as the past 2 years.

Hmm... My 'Crystal Ball' needs some fine tuning, but I'm happy that it erred on the conservative side.

[brattzz]

huat har! 2012 will be stronger!!

[KopiKat]

huat har! 2012 will be stronger!!

Another 'Trading Blue-Chip' on steroid today, $3.30 +5ct after steadily rising since last year's low of $2.6x. Div 12.5ct xd on 23-Apr.

[brattzz]

yes!

but i think 3.30 not sustainable... after XD should be 2.9X+..
we will see..

[KopiKat]

yes!

but i think 3.30 not sustainable... after XD should be 2.9X+..
we will see..

Some possible justifications for not selling,

- EPS had been growing since FY09 at 9.7% and 6.6% and expected to be better for FY12
- Current PE = ~19 is still low compared to 20-21 for FY09 and FY10. Can easily be $3.5x if so. It used to be higher at PE = 24 for FY05 to FY07.
- Continued strong order books with big new orders won for this year provides some degree of biz certainty (assuming majority don't get cancelled)

Still, I chose to sell most of mine, starting this AM @ $3.26, Noon @ $3.30 and Close @ $3.29. Reasons - I need the cash to switch to another of lower PE and higher Yield (STEng = 4.7% @ $3.29).

PS. Don't flame me for using such simplistic factors like PE & Yield for my Buy/Sell decision as I'm only a newbie..

[brattzz]

it's fine, in this type of market, better to take $ off the table 1st..

[Some-one]

I think this is a good company. I only do not like the dividend yield which I thought it's pretty low. My idea of good dividend yield is above 5%.

[KopiKat]

I think this is a good company. I only do not like the dividend yield which I thought it's pretty low. My idea of good dividend yield is above 5%.

That's cos' it had run up (was as low as $2.6x as recent as Dec-11). Wait for $3.10 for 5% Yield, only chance will be after xd on 23-Apr and may have to wait a few mths or have more -ve news like India blacklist to hit the headlines. No need to be impatient, can wait for <$3 or like GrandMaster 'brattzz' (who is famous for having coined the term 'Trading-BlueChips), then <$2.90.

[brattzz]

patient! always be patient!

What goes up, must come down.. vice vesa!

[Some-one]

I'm really running out of patience. I got cash and I wish to buy more but price is getting quite high nowadays due to the CD in most companies. Still refraining to buy more...