SIA Engineering Company

(07-03-2012, 12:19 PM)KopiKat Wrote: Unlike marriage, we actually have the free choice of having more than one 'partner' when it comes to stocks. I have both STEng and SIAEng. For sure they're not comparable but they have different attributes which suits my requirements. Even for TELCOs, which have a lot more in common with each other, depending on the Share Price, I may at any one time be holding all 3 (Currently I have 2 of them). So, for me, it's a matter of the right price (after screening it to make sure it suits me) rather than selecting the 'best' stock for any sector / industry.

Thanks, very well put. The right price decides everything. Ha! Ha! Agreed!

i was discussing something along the same lines. if you buy Super at a very fair and above average price versus buy Viz Brandz at a deeper discount, which one is a better proposition?

a bad price on a good company is not necessarily better than a good price on a mediocre company.

(07-03-2012, 12:45 PM)freedom Wrote: a bad price on a good company is not necessarily better than a good price on a mediocre company.

i think WB has said something great about the price we paid for a purchase.

Good thing about ST Engr over SIA Engr is ST Engr business is more diversed. SIA Engr still cannot run away from cyclical nature of airline business.

During high fuel price and recession time, when major airlines are making loss or parking their airplanes at backyard when less people are traveling, you may see the SIA Engr share price is being hammered. Even if its fundamentals remain strong.

There are certain reasons why SIA Engineering can't gear up, e.g. SIA need milk most of its profit out of SIA Engineering for its own cash flow.

(07-03-2012, 02:57 PM)hongonn Wrote: Good thing about ST Engr over SIA Engr is ST Engr business is more diversed. SIA Engr still cannot run away from cyclical nature of airline business.

During high fuel price and recession time, when major airlines are making loss or parking their airplanes at backyard when less people are traveling, you may see the SIA Engr share price is being hammered. Even if its fundamentals remain strong.

That's what I thought so too. But, when I looked at SIA Engg FY09 (Mar) financials, it does look quite robust (in fact fm FY08 to FY11, EPS is rather flat). FY09 was from Apr-08 to Mar-09 and would have essentially captured the worst of the US triggered financial crisis. I didn't look at the nitty gritty aspects of the figures though. I just imagined that perhaps during some recessionary periods, many Airlines may actually be sending their planes for maintenance (ahead of schedule) since it's idling away anyway. Or perhaps the recession was too short to have any huge impact.

In good times, can SIAEC force a price increase on SIA (their major customer)?

In bad times, can SIA force a price reduction on SIAEC?

For me, I perceive that a plane is like a car whether you drive it or not. The servicing still need to be perform on a regular basis. Maybe the interval can be lengthen slightly longer by a bit, but not able to skip to save some cost.

I maybe wrong. Maybe need to find out more.

> In good times, can SIAEC force a price increase on SIA (their major customer)?
> In bad times, can SIA force a price reduction on SIAEC?

This is a good question that I asked before. Even if they tell us, they wont tell us the degree of the up or down. SIAEC is essentially a price taker I believe. How can bite the hand that feed them?

Anyway, if u buy during Dec - Jan month, it is bingo time... like what Mr Market tell us, the window of opportunity come, just buy... no need to wonder why...