hey, this is a cut-&-paste from email sent out by a guy from DBSV Institutional sales to his clients. Just for sharing, ok? Two ideas stand out to me in the pack today. First, there\'s Singapore Petroleum (S$4.50; SPC SP). Analyst Vichitr KULADEJKHUNA provides an update with no change to earnings estimates, but halves his TP to S$4.54 and D/Gs the stock from a BUY to a HOLD, citing the prospect of weaker refining margins on the back of additional refining capacity. Notwithstanding, Vichitr\'s refining margin assumptions are moderate and in line with industry expectations, implying low risk to earnings, while SPC is trading at trough valuations of 4.9x Dec 09 PER and 1.1x Dec 09 P/B (discount to Indian and Thai peers). Furthermore, SPC yields 13.4% on a lazy balance sheet without any foreseeable capex impetus. Hello? Did you hear me? Put down that muffin! 13.4%! And to think of the song and dance we make of StarHub\'s c.7%+. Doing a quick sense check of SPC\'s numbers... 65% dividend payout ratio X c.20%+ free cash flow yield = Ka ching! (if my arithmetic serves).. SPC sounds more of a BUY to me at this point, unless there\'s something I\'m missing.
oh my, that dbsv broker\'s call was heeded by anyone? now, kena burnt. stock is $3.80. if he turns out to be right, then buyers are now looking at fantastic yield of 16%....? this market is just gonna kill some people, and make others ( a small %) very rich, hor?
oh my, that dbsv broker\'s call was heeded by anyone? now, kena burnt. stock is $3.80. if he turns out to be right, then buyers are now looking at fantastic yield of 16%....? this market is just gonna kill some people, and make others ( a small %) very rich, hor?
goodness the stock now is $3.14. this is a very fast plunge. If it were the other way ard, people would be kicking themselves for missing on a lot of riches. now, it\'s big regret for buying high.... or will it turn out to be a fantastic yield???
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