SMRT

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PUBLISHED MAY 21, 2014
SMRT shares jump to 11-month high

BYANITA GABRIEL
anitag@sph.com.sg @AnitaGabrielBT

SMRT Corp shares revved up to the highest in 11 months after it jumped 14.5 cents or 11 per cent to $1.475 yesterday.
This is the second time since April that the counter has spiked sharply, which analysts had by and large earlier dismissed as speculative hype.
But the surge this time, they say, may be premised on an imminent industry shake up or policy changes in the public transportation space which could benefit transport operators.
Last month, SMRT, the largest rail operator, submitted a detailed proposal to the Land Transport Authority on the new rail-financing framework.
Many believe that SMRT has made some headway on the new framework, which involves the treatment of the rail assets owned and operators' asset purchase obligations. The whole idea behind the framework is to make the sector more sustainable, hence there is the sweet expectation that it will be favourable to the operators.
But the devil, understandably, is in the details.
"The price at which assets are to be sold to LTA and future licensing charges are two key parameters to watch," said Maybank Kim Eng Research, adding that given the lack of clarity, it is highly speculative to conclude that it will benefit the operators.
There may be other factors behind the renewed interest in SMRT shares. The firm recently reported that it had swung back to the black in its fiscal fourth quarter, leading many to believe that the worst could be over.
The improved showing was driven by a sharp reduction in operating loss in its bus operations owing to better cost control and a stronger outing in the non-fare business.
Since April 23, shares of the transport firm have surged over 40 per cent or 45 cents, nudging closer to a year's high of $1.525 which it reached in late June last year.
On April 24, the strong run-up in its share price of nearly 19 per cent provoked a trading activity query from the Singapore Exchange, but yesterday's movement did not prompt a similar action from SGX.
The exuberance has not solely been centred on SMRT but has also been shared by industry peer ComfortDelGro, whose shares have had a good run on the back of encouraging first quarter earnings and expectations that it could benefit from changes in the public transportation policy.
Yesterday, ComfortDelGro finished seven cents or 3 per cent up at $2.38, a high not seen in at least five years.
Maybank Kim Eng Research issued a report on Monday on the imminent taxi shake-up with new entrants, armed with innovative app-based business models, growing their presence in Singapore.
There have been concerns that this could result in taxi booking income losses but Maybank Kim Eng said that the impact on taxi operators' profitability would be minimal. On the other hand, the research house expects the overall industry revenue pool to be augmented, hence benefiting the operators in the long run.
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More positive news for public transport companies! Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
(20-05-2014, 08:23 PM)greengiraffe Wrote: actually you chose to ignore how painful it was for it to drop from a dividend darling peak in excess of $2 to $1 before the recovery...

Too much $ chasing slightest hint of possible asset light model without even considering the social response on how actual details may pan out

(20-05-2014, 07:58 PM)brattzz Wrote: Going up $1.475 today!! Tongue 30 milos, funds buying!

$1 to $1.475 in 5 weeks... gosh!!

Price Action:
From the massive breakdown of SMRT in Dec 2012 till the price drop to $1, more than enough time (1 year++) has been given for investors to cut-loss/drop smrt shares, buy-back at $1 and now enjoy the up-trend to $1.45++...

Operations:
Only GOV/MOT has the authority/control over SMRT, rest of us can feedback, feedback and feedback...

Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
SMRT and anything to do with local news have to "look good" ma. GE coming 2015/2016. i should have thought(speculated on) of that. Now who is the largest buyer of SMRT now? Anyone connected to do "National Service"?
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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Olam, CMA already undergoing QE. STATS in progress while SMRT seems to be on the cards...

Must feel good before GE...

(21-05-2014, 12:37 PM)Temperament Wrote: SMRT and anything to do with local news have to "look good" ma. GE coming 2015/2016. i should have thought(speculated on) of that. Now who is the largest buyer of SMRT now? Anyone connected to do "National Service"?
Reply
GG,
I think you got the timing too early.

In an interview last Wednesday, when a Nikki reporter asked PM Lee on his strategy would be would be, with an election in SGP "coming up":

No, not for another 2 and a half years



Live with Passion, Lead with Compassion
感恩 26 April 2019 Straco AGM ppt  https://valuebuddies.com/thread-2915-pos...#pid152450
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(21-05-2014, 02:37 PM)chialc88 Wrote: GG,
I think you got the timing too early.

In an interview last Wednesday, when a Nikki reporter asked PM Lee on his strategy would be would be, with an election in SGP "coming up":

No, not for another 2 and a half years

Live with Passion, Lead with Compassion

Means still got 2.5yrs of goodies to come? Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
Is is the norm to and would they leave it to the last minute to call for an election?


I think they must call for an election by May 2016?
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Latest news.

LTA to contract out public bus services in the second half of 2014

(Not vested)
My Dividend Investing Blog
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(21-05-2014, 08:40 PM)Dividend Warrior Wrote: Latest news.

LTA to contract out public bus services in the second half of 2014

(Not vested)

SMRT and SBST's bus businesses are getting more interesting.

(not vested on both)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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