tag:blogger.com,1999:blog-1377738835782322104.post3369254246542488510..comments2023-08-18T01:29:19.662-07:00Comments on Singapore Blue Chips: Cutting lossSgbluechiphttp://www.blogger.com/profile/18070778039656838451noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1377738835782322104.post-73880277536964209352008-07-25T02:23:00.000-07:002008-07-25T02:23:00.000-07:00Personally, I do not think average down is a good ...Personally, I do not think average down is a good strategy to go. <BR/><BR/>It is pretty high risk. What if the price keep falling further, we can incur higher loss that way.<BR/><BR/>Cutting loss early is a better strategy to help us minimizing our risk exposure. That's my view.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-54439376618204930242008-07-15T08:09:00.000-07:002008-07-15T08:09:00.000-07:00Singpost is a steady cash cow but there is strong ...Singpost is a steady cash cow but there is strong resistance at the $1.24 level unless they substantially raise rates or buy back existing shares.<BR/><BR/>How are they coping with fuel costs will known soon.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-47862487385709656502008-07-12T20:22:00.000-07:002008-07-12T20:22:00.000-07:00Haha, but still the company is almost idiot proof ...Haha, but still the company is almost idiot proof and integral part of any economy. Hence, it will remain a core component of my portfolio for recurring income.Sgbluechiphttps://www.blogger.com/profile/18070778039656838451noreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-63421463173803504692008-07-12T08:45:00.000-07:002008-07-12T08:45:00.000-07:00Hi sgbluechips,I think singpost doesn't move up so...Hi sgbluechips,<BR/><BR/>I think singpost doesn't move up so fast. There's a lot of fundhouse selling this, ever since they are kicked out of sti 'dragon tiger list'. <BR/><BR/>Hold and see loh :)la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-1086520583044712192008-07-11T02:40:00.000-07:002008-07-11T02:40:00.000-07:00Hi LP, thank you very much for sharing your views!...Hi LP, thank you very much for sharing your views!!<BR/><BR/>The way I look at it, debts itself is a good tool to reduce tax and increase ROE for companies. Usually only conservative companies have low debt ratios. I think Allgreen is one of them.<BR/><BR/>Consider pp77 of Singpost latest annual report. It has borrowings of 302m, a tad lower than 2007's 316m.<BR/><BR/>Cash inflow for financing activities has increased 13m YOY, cash outflow from financing activities has been reduced by 8m.<BR/><BR/>Cash at bank has increased by 36m YOY.<BR/><BR/>I think the above shows good and improving financing discipline for Singpost. <BR/><BR/>For the special dividends, consider a worst case scenario:<BR/><BR/>Singpost gets 750m from the sale after some bargaining and pays up all its 300m debts.<BR/><BR/>It will still stand to gain 450m or $0.21 per share. <BR/><BR/>Again, we adjust 50% retention ratio, there is still a special dividend of $0.10 per share.<BR/><BR/>Singpost dividend policy is 80% payout ratio or $0.05 per share, whichever higher. Last year dividend rate was at 81% payout ratio.<BR/><BR/>Hence, it is definitely highly likely we can get a good bonus if the sale of the paya lebar HQ materialises. <BR/><BR/>Surprisingly the stock did not move up much this 2 days.Sgbluechiphttps://www.blogger.com/profile/18070778039656838451noreply@blogger.comtag:blogger.com,1999:blog-1377738835782322104.post-58359764547370441572008-07-10T23:05:00.000-07:002008-07-10T23:05:00.000-07:00Hi sgbluechips,I don't think singpost has low debt...Hi sgbluechips,<BR/><BR/>I don't think singpost has low debts.<BR/><BR/>In fy08, total debt to equity is 2.31. Perhaps it's due to the nature of the business (something like utility, i'm not sure since there's no good comparison for singpost) that it is highly leveraged. I say that because their Plant property equipment (PPE) stands at a substanstial 34.7% of total assets. They did sell off a lot of their properties already though, to be fair.<BR/><BR/>Current ratio stands at 0.90, not exactly wonderful either. <BR/><BR/>If it's not for the wonderful little monopoly (which is eroding with the liberisation of postal services) and the management's future direction of singpost AND the wonderful long history of good dividends, I'll be cutting loss on this one too :)<BR/><BR/>What do you think of singpost's pending sale of paya lebar HQ? At 850 million, it'll generate around $0.44 per share. Might give a bonanza of dividends for the divestment, when it occurs. Maybe 0.2-0.3 per share as special dividend?la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.com