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Citigroup cuts Singapore Technologies Engineering target price to $3.50 from $4.05 cutting FY09-10E estimates by 9%-12% to reflect slower growth from aviation (MRO) business. Keeps FY08E EPS growth forecast of 9%, but now expects mid-single-digit EPS growth over FY09-10E. Says rising fuel costs, economic slowdown starting to hurt larger and more profitable airlines; adds, although management has yet to experience softness, slowdown could extend longer than expected, affecting MRO businesses, which mark one-third of group revenue, but almost half of profit. However, keeps Buy rating. "We are positive on its long-term prospects. ST Eng has a good track record and consistently navigated previous downcycles well, widening market share and scope of work (e.g. securing high entry barriers engine test work)." Says downturn may present more MRO outsourcing opportunities as cost pressures force airlines to outsource noncore activities. Adds, share price also supported by about 6% net dividend yield.
TA signs are not very clear yet. High vol, good williams but MA crossover is still not closing up yet. I'll wait.
just did a quick estimate of BUSD, large lots traded (50 and above in a single trade):
for today: roughly net of 1,400 lots sold, BUT, one single married trade of 3,300 lots. Believe that was a buy up. with another 400+ lots married trade (another buy up). ie, net picture today is overall accumulation of 2,300 lots, BB action.
Support at 2.9.
selling overdone. being massively bought up now. typical trick. call sell on one hand, and buying on the other.
Yes, I think it is overdone...
Partly after div ex, price will correct. Normal. Also, sentiment today is bad. Worry not, blue chips are resilient. Proven in 1930 recession (not in spore but in US, Europe)
nickyng ( Date: 19-Jun-2008 10:21) Posted:
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got players, can lun until next week loh. on the other hand, DJ had down for 3 days leow, its kopi money if DJ tonite tech rebound. but yes DJ down 108 STI up 11.8. today DJ down 131 STI down 50. Really, dun know what to do leow. be bystander loh.
well..if u observe the "trend" those with gd divy yield got sold down mabbe by BBs ?? eg. STENG,SATS,SIA ENGR...etc..hee
Thinking of buying it at $3.15 but change my mind as dividend already payout. Heng, it is now $2.95 now. Will get some at $2.90 if fall further
some BB just sold 1,000 lots to break the price below 2.99 -.-" any idea y??? he wont gain anything right??
Merrill Lynch cuts target price for ST Engineering to $3.50 from $4.23 after lowering FY08-09 earnings forecasts 4%-5% to reflect lower maintenance revenue from aerospace arm. Says recent announcements from United Airlines, Continental Airlines (CAL) to reduce capacity by retiring planes raise concerns other ST Engineering clients may ground their aircraft as well; "such grounding releases hangar space and may lead to a reduction in MRO (maintenance, repair and overhaul) rates." Notes other carriers have unveiled plans to reduce flight frequency by 5%-10% until fuel price eases; "the demand for flight cycle-based maintenance work and repair work would be adversely affected." But keeps Buy call, citing strong balance sheet, ability to expand orderbook, dividend yield of 5.7%.
hmm would st engineering be a good price to go in now ?
DJ MARKET TALK: ST Engineering +0.3% On Mildly Positive Newsflow (2008/06/03 11:24AM)
0324 GMT [Dow Jones] ST Engineering (S63.SG) rises for third consecutive session, bucks falling market as recent spate of positive newsflow renews buying interest; stock +0.3% at S$3.23 vs FTSE ST All Share down 0.8%. Company announced Friday its marine arm had won S$29 million contract to lengthen pipelaying vessel, then yesterday announced new JV in Kazakhstan to focus on education projects, supply equipment, software, course materials for schools. But new contract and JV not expected to have any material impact on earnings for current financial year and contract is relatively small given company reported revenue of S$5.05 billion in FY07. "It is good news and they are trying to generate positive newsflow, but the stock has been stuck for a while and we need a big contract really to get the shares moving," says analyst at local house. Stock is still slightly oversold on technical indicators, suggests could head tad higher as it rebounds from 7-month low of S$3.13 hit on May 29; immediate resistance tipped at 30-day moving average of S$3.25. (KIG)
Contact us in Singapore. 65 64154 150; MarketTalk@dowjones.com
(END) Dow Jones Newswires
June 02, 2008 23:24 ET (03:24 GMT)
Copyright (c) 2008 Dow Jones & Company, Inc.
yawn slow counter
short term up trend.. support @ 3.16
Looks like not much interest in this counter.
This counter is near 52 week low. Any buying interest?
Last week I read somewhere an article about the US Govt being concerned about the security and maintenance standards allowing airlines to engage maintenance service parties outside the US. There was also some thing about a study into charging these US airlines for outsourcing their maintenance overseas. All these are protectionists moves but could this be the reason for the weak ST Engrg share price?
EastonBay,
Sorry I didnt give you a more detailed number crunching analysis. Yes, I agree that Co. presentations tend to highlight the good things. But, questions from the floor usually throws out more info and details which are not reflected in the presentations. Also, if you are following it live, you can also submit question thru the email. That is why I find webcasts useful.
Analysing the orderbook, as at 31 Dec07, it stood at S$9.49b and S$9.2b on 31 Mar08.. After taking away the loss of order from SkyBus of USD1b (S$1.35b) and 1Q08 billing of S$1.315b, it means STE booked orders in excess of 9.2 - (9.49 - 1.35 - 1.315) = 2.375b in 1Q08....I say excess of cos I have not taken into account the adjustments for the fall in USD of existing orders. This order intake is very strong and far exceeds billings for the period. Also, the current order book of 9.2b is approx equivalent to 2 years of revenue.......that is a very healthy situation to be in.
True, a very bright coy ahead, with good tie with local defense systems and commercial one at abroad. ST Aero disclosed that Skybus Airlines' Chapter 11 bankruptcy filing will not hv any material impact on its results for FY 08.
$0.1488 2H07 XD on 30 Apr leow.