ST Engineering

[Keverus]

this statement shows that you know nothing about accounting.

it means the company made 17 cents, gave 15 cents to the share holders and retain 2 cents into the company pockets. it does not have to dig into the coffers.

if eps is 13 cents and it gave 15 cents dividend, then it means that the company have to go into their piggy bank and take out 2 cents to pay the shareholders.

correct. but eps is falling. meaning this thin margin is questionable.

however, you can say that they retain only 2 cents, it is difficult for them to grow their business if they retain so little. then again st eng is a div stock. it does not have to retain it profits for growth.

then it's back to the same issue. i believe that ATTRACTIVE div counters would be those who can grow their divs. or those who can maintain their div yield without share price going down. st eng is capable of neither.

eg div to earning is at least 90% for all reits. do people buy reits? i do. maybe you want to call be stupid for buying reits.

REITs are a diff biz model, why u bring this in? people buy reits without expecting the capital to really grow. but the yield from Reits are much higher than st eng. different ball game and goals. i do hold 2 reits, but that's for other purposes.

 

[dork32]

it makes no sense because you misintepreted.


at no point did i say it is unable to fight inflation.

what i meant was 2014-you get 15 cents. 2015-you also get 15 cents. you have received lesser divs in 2015 due to inflation. same 15 cents, but purchasing power has gone down. the same dollar you receive one year down the road is lesser than the dollar you receive today. same concept lei.

it makes no sense because you do not know mathematics. you get your 15 cents dividend, you are not supposed to happy spend it. if you reinvest it back to the buy more st eng shares, you will realize that your dividend actually increases over the years.

 

[dork32]

correct. but eps is falling. meaning this thin margin is questionable.

as long as it is higher it is ok.

 

[dork32]

then it's back to the same issue. i believe that ATTRACTIVE div counters would be those who can grow their divs. or those who can maintain their div yield without share price going down. st eng is capable of neither.

.

as long as div is maintained, it is ok.

 

[Keverus]

it makes no sense because you do not know mathematics. you get your 15 cents dividend, you are not supposed to happy spend it. if you reinvest it back to the buy more st eng shares, you will realize that your dividend actually increases over the years.

going by this logic..why dont u buy those what allianz high yield bond unit trusts?

 

[Keverus]

as long as div is maintained, it is ok.

as long as it is higher it is ok.

my point being it is going to be difficult.

eps-div=0.02

eps expected to fall.

so yeah.....

 

[dork32]

c
REITs are a diff biz model, why u bring this in? people buy reits without expecting the capital to really grow. but the yield from Reits are much higher than st eng. different ball game and goals. i do hold 2 reits, but that's for other purposes.

you are right that lousy reits have high div yield

do you know which is the bluest reit? cmt. its yield is also below 5%, very similar to st eng.

you cannot compare a crab reit vs a st eng
you cannot compare a ah beng and seng airplane repair company with cmt

 

[dork32]

going by this logic..why dont u buy those what allianz high yield bond unit trusts?

i am just commenting on your mathematical ability, not talking about buying any counters.

 

[dork32]

i may not be able to ta and fa like you people. i may not have the guts you people have. but my maths is damn solid. if you write something wrong, i can catch it straight away.

 

[dork32]

my point being it is going to be difficult.

eps-div=0.02

eps expected to fall.

so yeah.....

nothing shows that eps is going to fall. neutral towards this point. will have to wait for the next results announcement to confirm that.

 

[dork32]

it makes no sense because you misintepreted.


at no point did i say it is unable to fight inflation.

what i meant was 2014-you get 15 cents. 2015-you also get 15 cents. you have received lesser divs in 2015 due to inflation. same 15 cents, but purchasing power has gone down. the same dollar you receive one year down the road is lesser than the dollar you receive today. same concept lei.

it is like i have 10 dollars today. i go and spend $5 and complain inflation has eroded my purchasing power

 

[dork32]

REITs are a diff biz model, why u bring this in? people buy reits without expecting the capital to really grow. but the yield from Reits are much higher than st eng. different ball game and goals. i do hold 2 reits, but that's for other purposes.

you are right that reits and st eng have different models.

why do people buy reits? mainly for dividend because they do not retain their profits.

so i buy st eng mainly for dividend and they do not retain their profits.

this is what valueinvestor said. it is a dividend play.

yes i did trade and made some money out of it. i was not smart. i was just lucky.

 

[wahkao3]

there are so many stocks out there
why bother with ST Eng???? hahaa

 

[dork32]

there are so many stocks out there
why bother with ST Eng???? hahaa

can i have some fun rebuking people? other than some rubbish, i have written quite a lot of sense.

 

[dork32]

The next we have to take a look at PE. ST Engineering currently trades at over 19.5x PE. For a company that has little growth potential, the PE is a tad too high. A more acceptable PE would probably be 15-17x. However, it is also a little difficult to price ST Engineering too low, because then the dividend yield would essentially run up too high, making it an attractive yield counter. Investors come in, the price is thus pushed up again. As such, I see ST Engineering being downgraded to 18-18.5x PE (just a little lesser than now). It should see the price of $3.06 to $3.15. The 52 week low this counter has seen is $3.14, so this pricing is not entirely far-fetched. Remember, if EPS falls, then this new price would actually then reflect a higher PE again.

this is a brave statement. one of the best that you have made. you are brave enough to stick your heads out and state a price for the counter.

you write like that i dont know how to rebuke you without making a fool out of myself.

it does not mean that i agree with you, but i do not have enough knowledge to challenge you.

then again, only time will tell whether you are correct or not.

 

[dork32]

But hold your horses. ST Eng’s decline requires a catalyst. It is currently trading in the range of $3.20 to $3.35, ie range-bound. The $3.20 support is a strong one; likewise, the $3.47 resistance is also a strong one. The slip in the stock price would come when the next quarter results are announced. Any announcement that is less than strongly positive should trigger the downtrend again. Results are likely to be muted with marine and aerospace likely to continue to be a drag. The recent aerospace won has no impact on financial numbers for this year, as announced by ST Engineering itself. We should see the $3.20 level being broken as the stock price slide towards the range of $3.06 to $3.15.

In the event the next quarter results somehow turn out to be fantastic, expect some cheer and the price to move north. Nonetheless, this would be short-lived and the price should slide back to the range of $3.20 to $3.35 before the next quarter announcement again.

these are very correct statements as well. i did mentioned that the price went down when results were announced.

but what if better results were announced instead. the counter would chiong like mad.

 

[dork32]

The recent aerospace won has no impact on financial numbers for this year, as announced by ST Engineering itself. We should see the $3.20 level being broken as the stock price slide towards the range of $3.06 to $3.15.

this statement is wrong. even if the contract does not improve this year's number, if it is going to improve next year's profit or the following year's, it is still considered as good news. future earnings do increase current share price.

 

[Keverus]

this statement is wrong. even if the contract does not improve this year's number, if it is going to improve next year's profit or the following year's, it is still considered as good news. future earnings do increase current share price.

er...i nvr say the contract wont improve next or following yr's numbers lei..

 

[Keverus]

these are very correct statements as well. i did mentioned that the price went down when results were announced.

but what if better results were announced instead. the counter would chiong like mad.

i believe the likelihood of great results is near zero.

even if results are good, it would chiong, but i believe it would slowly slide back to 3.20 to 3.3x levels.

 

[Shion]

We better keep silent because we have no idea who will be the next victim

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