Buy @ $3.80, $3.79
Decided to use the free cash raised from selling other stocks to buy STEng as my other targets had gone up… STI has slowly crept back to 3088.79 vs <3000 just a couple of weeks back.. many target stocks are now outside my radar…
A quick relook at Q3 (Sep) financials & forward statement,
One concern which I have is that it may suffer the same problems as SATS & SIAEC (being in a similar Aircraft Services Industry) of rising costs, causing a big Sep-Dec Quarter drop y-o-y in both Revenue & Profits… and of course weakening the share price. But, altho' we do start to see a similar weakening in Q3 (Sep), the forward statement of a comparable FY2013 vs FY2012 Revenue & PBT does seem reassuring… Perhaps STEng, being partly in the Defence Industry is better shielded??
My projection (assuming the same 90% Payout Rate) is DPU = 12.9ct to 13.4ct, lower than last year of 13.8ct ie. a -3% to -6% drop. Of course, I hope to be pleasantly surprised by a lower drop or even a tiny gain when they announce their Q4 results on 27th Feb…
Note that @ $3.80, PE = 20.26 ; Yield = 4.42% is more than fully valued… My game plan is short term, max till just before xd.. But, can hold for long term if plan fails… won't lose too much sleep as they have $12Bil+ in their Order Books.. 😀