Sell @ $1.515, $1.51, $1.485 (odd lot)
This is the last of my legacy stocks (except for SPH odd lot) which was bought in Feb-08 and Apr-08 at $2.31 to $2.56. Back then, it was a Cash Rich company and pays good dividends (100% payout) and yields aro' 8-10% for FY07 and earlier), The decline started in '08 when Cash started to disappear (likely CAPEX for new buses and trains) and Payout was reduced to 50%. From '10, Debts started to appear and ballooned to $400Mil by the recent Q.
A good lesson here… not to just buy and hold as a good thing may not last forever. Have to be continuously be in touch with the business and on hindsight, '08 was the turning point of a good Cash Cow becoming a Highly Geared, Low Margin business…
LTA just announced a new Contracting Model for the Bus Industry. By 2016, we'll see an Asset Light model where operators like SBS do not own the Bus Assets but gets paid (based on their tendered amount) to operate the bus services. Share prices had gone up even prior to the announcement and today, I decided to get rid of my legacy holdings… Big losses, but on the bright side, it's a lot higher than end-Apr close of $1.25…. will add to my NAV… 😀
Prices continued to go up after I sold and closed @ $1.60. PE = 44.2 ; Yield = 1.125%… Wow! Looks like the valuations for a good Growth Stock!! I suppose it's possible if we treat it as a Turnaround Stock. Will have to figure out when the turnaround is going to happen…