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The higher cost (especially from staff related) was not offset by the higher revenue it achieved.
Based on the lower EPS of $0.02 for the first half, annualised at $0.04 EPS and the current share price of $1.275 derives a PE of 32x.
This is not attractive as compared to other transport stocks. In my personal opinion, I will switch to other transport counters.
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A easy to increase revenue is increase the fare, but I doubt they w allow that t happen until after 2016. So now it's only the rental income that they can count on.
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Smrt really looks like a sinking ship, comfort delgro seems like a
Better bet for exposure in transport sector
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Logical, but most people are just watching. Anyway if buy now, in the long run should be O. K. lah. imo.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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I thought the philosophy is to buy low PE or low PB stocks that no one interested?
I shall wait till better times before buying into SMRT.
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Correct. But what is low PE or low PB for one stock is different from another stock. Viz a viz by current market valuation. In fact i agree that SMRT is still quite expensive to me to buy now.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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SMRT the PE is wayyyy too high
I think comfort delgro at PE 15 is more fairly priced
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(01-11-2013, 08:00 PM)ForeverAlone Wrote: SMRT the PE is wayyyy too high
I think comfort delgro at PE 15 is more fairly priced
Valuation of SMRT base on historical earning is misleading, with the impending changes, IMO. Forward earning is a more appropriate one.
The cost-plus model might help to bring SMRT back to its old good days with EPS of 10+ cents, which means PE of 12-13 base on today price of $1.28, Sound good?
(not vested)
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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01-11-2013, 09:43 PM
(This post was last modified: 01-11-2013, 09:44 PM by CY09.)
I seriously doubt the cost-plus model will bring it to a 10+ cent EPS. My personal opinion is that the govt will try to ensure SMRT achieves an annual ROE of approx. 10% under the new model. This would indicate EPS to be approx. 5-7 cents per year with shareholders getting a 50% payout.
The new model will have to ensure the delivery of shareholder value is matched with ensuring a quality transportation that Singaporeans expect (good transport service and low fares).
The business of SMRT is relatively easy to control since approx. 99% of its revenue comes from Singapore
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