Nothing of note for a day where market continues to be directionless. However, some of you might want to see if you wanna pick up SPH after its 5.7% fall.
SPH
EDIT:A kind commenter actually told me that i made a foolish mistake. It actually went Ex-Div! So thats why the drop. Apologies for more confusion.
Its a drastic gap down on the charts, so much so that it burst the bottom of the price channels. I still don’t get why people buy SPH for yield.The most plausible reason is that pensioners taught this is a garment stocks that will never collapse and provides higher interest rates then what you put in banks.
Well for me there are some danger flags. For one thing, operating cashflow yield is 0.4%. It would seem that they are loss making in FY 2008 such that if they had paid you the dividend yield you ask for its more likely its from their cash holdings.
That isn’t really sustainable in the long run. but this is after all a garment stock so not sure if it will collapse like those poor fundamental stocks around.
A note that i do look at EV/EBITDA and operating cashflow yield as important criterias for measuring a good div yield stock and such a operating cashflow tells me that this company is paying more than it can.
Here are today’s figures. Do follow my Dividend Stock Tracker which is updated nightly here.
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Drizzt
Friday 11th of December 2009
donmihaihai at the end of the day, if you are looking for growth, then the property business is what we should be analysing. But if you are looking for a business that provides a product that is able to produce even in a bad time to generate a sustainable yield, then we have to wonder how long more SPH can do this.
I am a tech blogger at www.productiveorganizer.com as well and this article illustrate the overseas big boys see this ebook reader market as the next space they need to execute a good strategy, if not they will be quite jialat.
http://www.productiveorganizer.com/mobile-productivity/a-single-portal-to-download-all-e-magazines-might-not-be-too-far-away/
Drizzt
Friday 11th of December 2009
Kay it should be fixed. i really dunno why it end up this way!
donmihaihai
Friday 11th of December 2009
Well able to balance their cashflow or satisfy shareholders thru dividends is one thing but don't conclude too soon without taking note of the working capital need of being a property developer ---- the need of sucking up lot of cash upfront for quite some time before cash inflow.
Kay
Friday 11th of December 2009
Hi there, Just wanted to say that your nightly "Dividend Stock Tracker" link doesn't seem to be functioning.
Keep posting ya! Good stuff! =) Cheers, ~K
Kay
Friday 11th of December 2009
Hi, Just wanted to point out that your "Dividend Stock Tracker" link seems to be non-functioning.
Keep on posting ya. Good stuff!
Cheers, ~K