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Well, SMRT would just go up constantly. It is stable and will never collapse.
This would be the best pick to set a long term position.
SMRT is a defensive stock that is good for longing. Can invest in it for an indefinite period of time. Its dividend yield is attractive man.
Too bad it's not suitable for trading.
The market is always right. Never quarrel with it. It's been on a up curve.
SMRT is appealing. It's ROTA meets world standards if you read up the Authority's websiste. The revenue structure is very transparent and its bottomline from strictly transportation operations are 'guaranteed' under the fare regime. The ++ comes from its store and advertising operations. I think the share price will rise in tandem with oil prices and food prices. On the demand side, it's an ever-increasing one.
i find that a great appeal of SMRT is that the bulk of its capital outlay has already been spent and accounted for. Glancing through the financial statements, depreciation charges amounts to about 18% of sales, thus giving the company tremendous amount of operating cash flow.
in line with bodobin's concern with the new policies, i think that we have to be concern with SMRT's top line growth as it may lose some pricing power. However as mentioned by ten4one, pple r going to continue taking mrt, buses and taxis, thus sales volume wise it may not be a concern. But the problem is that it may not be able to transfer increase in cost to the consumers (as it currently does), thus impacting its bottom line.
In good or bad times people still have to travel. SMRT would be a slow and safe way to reach your destination, finally. Only concern is fuel-costs! Cheers!
What do you think will be the impact of the land transport review on SMRT's business? Bus routes will now be centrally planned and charges will also be according to distance. Will SMRT and its competitor ComfortDelgro do better under this new system?
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In the first three major announcements, Transport Minister Raymond Lim zoomed in on changes to the bus system, which serves two-thirds of all commuter trips today.
Speaking at the opening of the Land Transport Gallery, he outlined the urgency of the problem, stressing that with trips poised to increase 60 per cent between now and 2020, the only option is to steer people towards taking more public transport.
For that to happen, Mr Lim said, not just the quantity, but also the quality of public transport would have to improve tremendously.
Currently, the system is fragmented between two operators - SBS and SMRT - which plan the routes based on commercial considerations and minimum service obligations.
But the result is this: there are more than 250 bus services in all but only 1 in 3 come every 10 minutes or less and some even take more than half an hour to arrive.
Then there is the problem of feeder services that make circuitous loops before arriving at the interchange.
So firstly, the Land Transport Authority (LTA) will take over the central planning of the bus network, with the commuters' ease of journey as the main focus.
Buses will also get more priority on the roads, with more full-day bus lanes and making it mandatory for cars to give way to buses at bus bays.
More integrated public transport hubs, like the ones at Toa Payoh, Sengkang and Ang Mo Kio, will be upgraded to make transfers easier. Five more hubs will be upgraded and two more are already being upgraded.
And from next year, commuters will pay for distance travelled, regardless of the number of transfers made.
LTA will also introduce an integrated season pass for both bus and rail travel, regardless of operator.
And more travel information will be made available via panels, text messages and websites.
The second big change will be to introduce competition among operators, including opening the market to new players.
Mr Lim said: "They found that introducing some form of competition, or even just the real threat of competition, is an effective way to keep bus operations efficient and raise service standards."
The Ministry says there are limited economies of scale for fleets above 500 buses.
And since the country has a 3,700-strong bus fleet, Singapore could potentially have more than two operators.
The island will be carved up into different regions and potential operators will bid for these in a competitive tender.
The third major change is for the LTA to keep its pulse on the community's transport issues through regular dialogue with grassroots members.
More changes, including those to the ERP system, are expected in the following weeks. - CNA/ac/vm/ch
Click here for Transport Minister Raymond Lim's speech on making public transport a choice mode
Its a matter of how long you want to hold this share, and opportunity cost, SMRT for me is a long term play, buy and keep, but the problem is can you not put your money on other shares where returns can be faster but of course riskier, I would do dollar averaging if I just start out, target by 50 yrs old and see how my investment grow.
Surprise that SMRT holds up better than Beyonics even though Beyonics may be bought by private groups.
Haha ltvalue, we think alike. Me thinks I found a Value-Buffett-Bill Miller-phile in this forum. It's great to meet you.
at a p/e of 18 and price-book of around 3.5, i'm not sure if it is attractively priced. There seemed to be much anticipation for the company to generate large sales or income growth, however, i wonder where can this growth occur and how sustainable. The greater utilisation of land and increase of ticket fare will surely boost earnings in the medium term, but i can hardly see a very long term growth strategy. If we overpay for growth, sooner or later we gotta pay for it.
Hi all. I have not been reading the reports by SMRT but just somethings I have got discussing with people.
I think SMRT's management team is quite bright especially their decision to convert station space into rent yielding shop space. However, I think it is a business where management plays only a limited part in its performance.
The Rapid Transit and busing Industry consists of duopolies fighting it out. SMRT has control of the currently more popular MRT routes and SMRT buses. No doubt it has a very predictable model and yields great earnings year in year out. However, I am just thinking about its growth prospects. No doubt there will be increased ticketing receipts as time goes by and as more shop space is being rented out. I am just concerned about where growth is going to come about in the long term. It is also unique in that even though it is a duopoly, it cannot set prices without regulatory approval so trying to increase profits by increasing pricing at will is also not a long term workable solution.
Just my 2 cents. However, I recommend discussing this with people who are in the industry. You just might have a friend who works in train stations or better yet, SMRT. The annual report should also contain information on what management is planning in the long-term for the company to grow.
What do you guys think of SMRT's Management Team?
Hello,
A more qualitative description of what our FA research team believes and practices will be put up in the a new subject area: Welcome to SMU E.y.E Fundemental Analysis!
Steer back to SMRT talk? haha....
Regards,
Joeyhops
To answer your question. Yes, we are doing this for mutual learning. hopefully, we can learn more from all of you working professionals out there. As for whether you guys can learn from us. I hope we have something to offer. ;)
Cheers!
tatrader
Will this mean that we can expect serious and valuable posts from the students ...and requiring similar posts from fellow memebers of SJ ....for mutual learning ...?
Wooo.. sorry for posting my 'nonsense' on this thread... duhz~
Hi everyone!
Basically this is a forum that ShareJunction and SMU E.y.E Investment Interactive Club have been working on over the past few months - we are working closely with the ShareJunction management to send out an official e-mail to all ShareJunction members to inform you guys about this new section of the forum soon.
E.y.E does not stand for anything in particular - it was meant as something for us to differentiate ourselves with, and it has proven to be very successful over the years. The school, our friends, partnering organizations have all learned to refer to the club as SMU E.y.E.
We have every intention of using the forums as a platform as a medium through which we extend our weekly research meeting discussions towards. We hope that members of SMU E.y.E, be it newbies to investing or people who have been involved in the market for some time, can learn from and contribute to ShareJunction members through our interaction using this platform.
Here's to the beginning of a special relationship between ShareJunction and SMU E.y.E members!
Best Regards.
Pardon my ignorance .... is this a thread exclusive to SMU students to post / discuss their finding on FA of counters ?
1.65SGD immediate support. 1.83SGD hardcore resistance.
singaporegal. Just my opinion. I think you must be very beautiful in real life. If not cute in the feminine sense but yet focused and committed to delivering the best. How can i know more about you? 