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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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Wednesday 5th of May 2010

I cant get anything from above provided graph.Can you explain a little more?


Wednesday 5th of May 2010

providing the graphs does not serve as a detail technical analysis. what it does show is price progression and appreciation and whether it have correct far to a acceptable level.

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