Yield Watch:Analyst disappointed with SMRT's results

Although many stocks on my dividend stock tracker suffered today the biggest news was SMRT’s 5.7% fall. This might not seem like alot if you are well versed in penny shares but for a dividend stocks its like telling people you have at least a short term problem.

4Q10 revenues were up 3.7% y-y to S$225.1m, while net profit was down 41.4% y-y to S$22.7m. For FY2010 revenues came in at S$938.2m (+3.6% y-y), which was slightly ahead of our expectations of S$932 due mainly to higher riderships, higher rental revenues and fees from overseas projects. Operating expenses has taken its toll on SMRT as total operating expenses increase 10.1% y-y to S$206.6m due mainly to higher staff costs, higher maintenance and repair costs. This came as a surprise as FY2010 was supposed to result in lower operating costs due to the global recession. As a result, net profit edge up marginally to S$162.8m (+0.1% y-y).

Huge volume there, as big as the volumes at the bottom for SMRT.

How should you view this?

If you had invested it these few days, you must have like this stock and think that its growth story is intact. Evaluate whether the fundamentals are still sound. Technically it seem to need to hold SGD2.15. You might want to have a 15% stop loss even for a dividend stock.
If you are vested at a low price, watch out for SGD1.85. That is where the 200 day moving average is. breaching that would likely mean that most of your profits are gone if you take profit here. But as long as it stays above this line it is still in a bull run. Ride it till it falls off the 200 day moving average. Then you ask yourself if the fundamentals are still intact. you might want to take profit on a portion of your holdings with the view of buying back lower.

I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. It contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly here.

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Kyith

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.

You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.

His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.

You can read more about Kyith here.

I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. It contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly here.

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