Sell @ $3.18
Decided to sell off my tiny stake. It was meant to be short term anyway as current Quarter reporting is not their Dividend Payout quarter.
Last night, I mistakenly thought that they'd be announcing their Q3 results. While checking thro' SGX Annc, I decided to take another look at their previous Q2 results and other recent Presentation materials. A couple of points,
- Singapore Cruise Centre – I thought they had already acquired the above and the coming Q3 may have a positive contribution from this. But, this is not the case as it's awaiting Regulatory Approval. Once approved, they'll have to hold an EGM for shareholders' approval.
- This acquisition will be accretive ie. Add to EPS
- Will deplete their Cash
- Probability of Special Div for 2H is lower due to this
- Q2 Financials – Earnings was lower on a y-o-y basis and attributed to rising costs.
- Looks like hi chance Q3 will have same impact
- SIAEC faced the same issue and share prices dropped from $4.91 to $4.76 now (low was ~$4.69)
After the market closed, Q3 results showed earnings dropped y-o-y by -9.5%. On a 9M basis, the drop was not very significant, 12.3ct, fm 12.5ct. Still, I'll hands off SATS till it's closer to Q4 results, unless prices are a lot more attractive…