Haven't updated in a while...
Having be in shares for almost half a year, I think the most difficult decision to make as a young and new trader/investor is whether or not to cut losses on an under-performing stock. Personally, after attending a few more talks on technical analysis and discussion with my friends, I realized that my buying of SATS @ 2.87 was of a very bad timing and price. However, I was not receptive to the decision of cutting my losses till I see it slide all the way down to about 2.55 now. Thinking back, should I cut my loss? Some reasons I chose not to was that the company pays out regular dividends making it quite a stable company in my opinion and that I have the ability to hold on to the share for a longer term. In addition, the recent earthquake in Japan came at a poor time as SATS have just taken over TFK, a Japanese airline caterer. This is where I felt kind of confused. Would the money be put to better use than leaving it stuck at a paper loss?
Because of this I went to read up and had a discussion with a few friends. I believe the question can be answered based on one's chosen time period for trading, whether it is short, mid or long-term. Now, I categorize the shares in my portfolio based on whether it is a short, mid or long-term trade. SATS, being a share which gives out a stable yield, is, in my opinion, a mid-term share. Thus I decided to hold onto my current lots. Hopefully some of you who read my blog can give me some opinions? :)
Updates:
I loaded a few lots of Indofood Agri @ 2.19 just last week and I must say I'm still not experienced enough to decide on a good enter price. After entering at that price, the price bottomed out to 2.12 before rallying on thursday to close at 2.19 after a high of 2.21. Seasoned traders would have took and made a huge profit before good friday! Oh well, after every trade, I only become more experienced!
Showing posts with label SATS. Show all posts
Showing posts with label SATS. Show all posts
Monday, April 25, 2011
Saturday, February 12, 2011
SATS oversold?
Just before it went all the way down to 2.60 since the start of the week, I loaded 3 lots @ 2.87.
It was probably due to the overall bearish mood of the market and the rather unconvincing results that SATS released which shows its profits decreased due to rising food prices. In addition, many brokerage calls have been downgraded to sell/hold. I'm rather pessimistic and feel that there may still be further downside but with its stable dividend and with a major shareholder in Temasek Holdings, this may just be a temporary correction. The acquisition of TFK should aid in future profits and also the lack of news on a 3rd ground handler in Changi Airport should be good prospects for the company and we should see it rebound soon.
Have been posting less recently but I hope to post for frequently as I have ORDed as of TODAY!
It was probably due to the overall bearish mood of the market and the rather unconvincing results that SATS released which shows its profits decreased due to rising food prices. In addition, many brokerage calls have been downgraded to sell/hold. I'm rather pessimistic and feel that there may still be further downside but with its stable dividend and with a major shareholder in Temasek Holdings, this may just be a temporary correction. The acquisition of TFK should aid in future profits and also the lack of news on a 3rd ground handler in Changi Airport should be good prospects for the company and we should see it rebound soon.
Have been posting less recently but I hope to post for frequently as I have ORDed as of TODAY!
Sunday, December 19, 2010
Happy Holidays! Not forgetting a pre-2011 watchlist..
Sold of my 3 lots of SATS at 2.88 for 2.92 on contra for a profit of about 50 bucks.
Loaded 3 lots again at 2.80 before friday's close.
My current watchlist includes GMG, Capmallasia, Comfortdelgro & Straitsasia.
The problems in ivory coast resulted in a fall in GMG's price after a good start to the week. However, I feel that these problems are short term. Once the situation stabilizes and with rubber prices maintaining or even hitting new highs, high rubber prices should be here to stay.
Capmallasia fell to its lowest ever by closing at 1.84 on friday. Still researching on what could have caused this though it looks like a good price to enter.
Also currently researching on comfortdelgro. Looks very undervalued and with the recent news of it starting bus services in australia, looks like a good stock to keep on the watchlist.
Straitsasia have fallen from a high of 2.90 to 2.40 on friday. Looks very oversold and with coal prices also staying high in years to come, it may be a good time to enter.
As the holidays approach, trading volume falls and people start to take profit. This may be a good chance to enter stocks on your watchlist.
Last but not least, merry christmas & a happy new year!
Loaded 3 lots again at 2.80 before friday's close.
My current watchlist includes GMG, Capmallasia, Comfortdelgro & Straitsasia.
The problems in ivory coast resulted in a fall in GMG's price after a good start to the week. However, I feel that these problems are short term. Once the situation stabilizes and with rubber prices maintaining or even hitting new highs, high rubber prices should be here to stay.
Capmallasia fell to its lowest ever by closing at 1.84 on friday. Still researching on what could have caused this though it looks like a good price to enter.
Also currently researching on comfortdelgro. Looks very undervalued and with the recent news of it starting bus services in australia, looks like a good stock to keep on the watchlist.
Straitsasia have fallen from a high of 2.90 to 2.40 on friday. Looks very oversold and with coal prices also staying high in years to come, it may be a good time to enter.
As the holidays approach, trading volume falls and people start to take profit. This may be a good chance to enter stocks on your watchlist.
Last but not least, merry christmas & a happy new year!
Monday, December 13, 2010
SATS- Buy calls from Kim Eng, Philips
Just sold my 3 lots of SATS today before noon break @ 2.92
Profit of about $60
Total Profit up till now: $440
Will load again when it hits 2.85-2.88
Back to the topic,
SATS announced on 29 Nov 2010 that they will pay ¥7.8billion
(approximately S$122 million) for a 50.7% stake in TFK Corporation (TFK) from Japan
Airlines (JAL). According to a news report on 15th Sep 2010 from Airportbusiness.com, the original price tag for JAL’s 51% stake was 10bn yen. The price paid by SATS is 22% off the rumored price.
According to the company website, it is stated that TFK
provides 15mn meals annually (as compared to 24.5mn meals by SATS from Oct 09 to
Sep 10) and employs 1,125 employees. They have customers from more than 30
international airlines and operate with its HQ in Narita International Airport & Tokyo
Haneda Airport. TFK was established in 1959. In the same article from
Airportbusiness.com, TFK was reported to have annual sales of 22.5bn yen
(approximately S$351mn) in fiscal 2009. SATS had disclosed that they do not expect
material impact to the earnings and NTA of the Group for the current financial year ending
31 Mar 2011, as the acquisition is expected to be completed in Dec 2010.
Quoted from Philips Securities:
• We do not think SATS overpaid for the stake based on currently available
information.
• No revision to earnings estimates due to lack of information at the moment.
• We view this acquisition positively as it allows for geographical diversification within
the company’s area of competence.
• Estimated 13% increase in share of sales from overseas by FY12E.
Quoted from Kim Eng:
The acquisition, which is still subject to closing conditions, is expected to be
completed before end‐2010. Assuming no change in FY11 and FY12, we
estimate TFK may add about $7m (about 3%) to SATS’ earnings in FY12.
There could be upside to these estimates once SATS gets to work on
integrating TFK’s operations. In addition, the planned revival of Narita and
Haneda international airports, if successful, could boost prospects further.
Assuming SATS uses all‐cash to fund its TFK acquisition, it will still have net
cash of $60m left over. As at September 2010, it had $182m in net cash. In
addition, it has plenty of long‐term credit facilities to tap on, including a
$500m medium term note programme and $200m revolving credit facility,
thus giving it a potential warchest that exceeds $700m. Its existing core
business is highly cash‐generative with a short cash cycle of just a couple of
weeks as well as low capex of $50‐70m pa.
Philips Securities maintains BUY recommendation with target price of S$3.21.
Kim Eng maintains BUY recemmendation with a target price of $3.48.
Youthvestor: Changi Airport may see a third baggage carrier, thus SATS acquisition of TFK allows it to diversify its operations, it could boost its overseas revenue to cover the potential competition in Changi Airport.
Profit of about $60
Total Profit up till now: $440
Will load again when it hits 2.85-2.88
Back to the topic,
SATS announced on 29 Nov 2010 that they will pay ¥7.8billion
(approximately S$122 million) for a 50.7% stake in TFK Corporation (TFK) from Japan
Airlines (JAL). According to a news report on 15th Sep 2010 from Airportbusiness.com, the original price tag for JAL’s 51% stake was 10bn yen. The price paid by SATS is 22% off the rumored price.
According to the company website, it is stated that TFK
provides 15mn meals annually (as compared to 24.5mn meals by SATS from Oct 09 to
Sep 10) and employs 1,125 employees. They have customers from more than 30
international airlines and operate with its HQ in Narita International Airport & Tokyo
Haneda Airport. TFK was established in 1959. In the same article from
Airportbusiness.com, TFK was reported to have annual sales of 22.5bn yen
(approximately S$351mn) in fiscal 2009. SATS had disclosed that they do not expect
material impact to the earnings and NTA of the Group for the current financial year ending
31 Mar 2011, as the acquisition is expected to be completed in Dec 2010.
Quoted from Philips Securities:
• We do not think SATS overpaid for the stake based on currently available
information.
• No revision to earnings estimates due to lack of information at the moment.
• We view this acquisition positively as it allows for geographical diversification within
the company’s area of competence.
• Estimated 13% increase in share of sales from overseas by FY12E.
Quoted from Kim Eng:
The acquisition, which is still subject to closing conditions, is expected to be
completed before end‐2010. Assuming no change in FY11 and FY12, we
estimate TFK may add about $7m (about 3%) to SATS’ earnings in FY12.
There could be upside to these estimates once SATS gets to work on
integrating TFK’s operations. In addition, the planned revival of Narita and
Haneda international airports, if successful, could boost prospects further.
Assuming SATS uses all‐cash to fund its TFK acquisition, it will still have net
cash of $60m left over. As at September 2010, it had $182m in net cash. In
addition, it has plenty of long‐term credit facilities to tap on, including a
$500m medium term note programme and $200m revolving credit facility,
thus giving it a potential warchest that exceeds $700m. Its existing core
business is highly cash‐generative with a short cash cycle of just a couple of
weeks as well as low capex of $50‐70m pa.
Philips Securities maintains BUY recommendation with target price of S$3.21.
Kim Eng maintains BUY recemmendation with a target price of $3.48.
Youthvestor: Changi Airport may see a third baggage carrier, thus SATS acquisition of TFK allows it to diversify its operations, it could boost its overseas revenue to cover the potential competition in Changi Airport.
Tuesday, December 7, 2010
Bullish end to 2010
Sold off my stakes in SATS 3 lots @ 2.89 due to the incoming news of a 3rd baggage handler at Changi airport which may reduce SATS market share
tidy profit of about $320 including the 5 cent dividend
Bought one of my watchlist stocks genting hk @ 43.5cents. Time for a rebound to the 52cents high
Meanwhile, JES hit a high of 35.5cents today after announcement of 6 more new contracts. Hopes it break 36cents soon! Closed at 0.345 instead
To add, quite a while ago I got 1 lot of SabanaREIT @ 1.05 via IPO :(
tidy profit of about $320 including the 5 cent dividend
Bought one of my watchlist stocks genting hk @ 43.5cents. Time for a rebound to the 52cents high
Meanwhile, JES hit a high of 35.5cents today after announcement of 6 more new contracts. Hopes it break 36cents soon! Closed at 0.345 instead
To add, quite a while ago I got 1 lot of SabanaREIT @ 1.05 via IPO :(
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