PE 29x based on MV of $1.295. Net gearing rose from 0.08 to 0.64. The last quarter results is cashflow negative and the service level to the public has not improved with the frequency of trains further apart. DPS has dropped significantly. NAV/share is at $0.518.
The attraction of SMRT is in its transport industry, being defensive. However, this stock has not dropped to an attractive price yet.
Notice recently smrt has been putting up a lot of advertisement to tell the commuter all the enhancement programme it is put in place (more trains etc)
(20-09-2013, 08:02 AM)palantir Wrote: [ -> ]Notice recently smrt has been putting up a lot of advertisement to tell the commuter all the enhancement programme it is put in place (more trains etc)
I noticed that and I'll be checking with a stop watch to see if their 100s claim is true when the new signalling is installed...
Another observation I has was for suburban stations, they seem to have problem selling the billboard space for adverts as it's usually empty. So, perhaps kill 2 birds with 1 stone and use it for their own PR...
(20-09-2013, 08:02 AM)palantir Wrote: [ -> ]Notice recently smrt has been putting up a lot of advertisement to tell the commuter all the enhancement programme it is put in place (more trains etc)
I feel its not only SMRT. Many gov agencies are investing in a lot of publicity to broadcast what they are doing also. Maybe this will bring SPH good business? Mediacorp will also benefit and its partially own by SPH.
(20-09-2013, 08:02 AM)palantir Wrote: [ -> ]Notice recently smrt has been putting up a lot of advertisement to tell the commuter all the enhancement programme it is put in place (more trains etc)
Yes, I noticed that as well. I see that as a positive reaction from SMRT.
Probably highlighted as a top priority low-hanging fruit agenda item in SMRT's internal strategy review (imagining things here), don't you think so?
To be honest, if we compare SMRT to overseas mass rapid transport, is it really that bad? I spent a few years in London, the tube is by far worse off. Or ask visiting tourists, they will tell you the MRT here is great. Cognitively, we overemphasise the negativity surrounding bad incidents and ignore the positivity when things work well. Ask ourselves, what % of our MRT trips are bad experiences due to operator?
The SMRT folks must be thinking similarly - they feel they are doing a decent job (depending on ur comparison yardstick), they recognise a big gap in current operations versus lofty expectations of the users, and the best way to address this is to
improve communications and publicity.
If they don't do something about it, the impact is pervasive. (1) After so much bad publicity which is all over the media, their responses need to go back via the same channels. (2) The bad publicity is having detrimental impact to SMRT's ability in talent management - attracting them, retaining them.
And good talent run good business.
So my point is: the advertising should be expected and a right thing for SMRT to be doing. Whether or not the public buys it is a separate matter, I must say we are a very demanding lot, us Singaporeans.
Coz we expect our Government and all public services to be perfect or near perfect?
I think a fair statement will be they are PAID well over not to screw up. Reasonable Standard and Price cannot be compromised for the masses. Considering they also suck in our TOP Talents, the hidden cost on Private sector growth impact is quite significant. We paid a high price for it. So if they cannot meet even the reasonable level, we expect them to be replaced.
Top salaries for talents or monkey ?
Lots of TOP talents in the Congress and White House too. But they still end up having a debt ceiling fight.
In an interview with CNBC, Warren Buffett described the looming US debt ceiling fight as 'damn dumb'.
http://www.nbcnews.com/business/warren-b...4B11210658
So, guys, do not assume intelligent and talented people to do the right things all the time. Sometimes, they do dumb things too.
(22-09-2013, 10:21 AM)corydorus Wrote: [ -> ]I think a fair statement will be they are PAID well over not to screw up. Reasonable Standard and Price cannot be compromised for the masses. Considering they also suck in our TOP Talents, the hidden cost on Private sector growth impact is quite significant. We paid a high price for it. So if they cannot meet even the reasonable level, we expect them to be replaced.
If you are referring to SMRT, then I would say we, as commuters, didn't pay well (in fare), comparing to peers in the region. IMO, SMRT didn't do too badly, but there are room for improvement.
May be you are referring to LTA.