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I will only buy a lot (1 lot) when the trend is overcertain... hehe... :)
Hi, is the trend still undercertain? From a novice point of view, it appears so. Any comments?
Trend appears uncertain... caution on Singtel
UBS Investment Research said it had resumed coverage of SingTel with a "buy" rating and raised its price target to $3.70 from $2.91.
"We believe that SingTel offers an attractive mix of growth from its regional mobile associates and stable cash flows from the Singapore and Australian businesses," the investment house said in a client note.
SingTel derives about three-quarters of sales and two-thirds of pretax earnings from operations outside S'pore. Battling heavy competition at home, where the mobile phone penetration rate has reached 100%, SingTel has spent about $20 billion in recent years buying firms in high-growth Asian countries and in the bigger Australian market.
It owns stakes in telecom firms in Thailand, Indonesia, the Philippines, India and Bangladesh.
This one is quite likely to drop back to 3.00 before recovering. Only quite likely...
Could be in the midst of a trend reversal now
Last year, on March 21, SingTel's share price dropped by about 6.5%when Temasek announced that it had sold $2 billion worth of the telecom's shares.
"Temasek's policy to cut its holding in SingTel is a known fact. You can only speculate on the timing and size of the sale," said a dealer at a European brokerage.
It fell to $3.20 on market talk that controlling shareholder Temasek Holdings may trim its stake in the firm.
One dealer with a regional brokerage said some investors were speculating that Temasek might sell part of its 57% stake after shares of SingTel hit a seven-year high last week.
Analysts said that a 26 percent rise in SingTel's share price in 2006 has encouraged traders to take profits. "The valuations have gone up very high," DBS Vickers analyst Sachin Mittal told Reuters.
According to Reuters data SingTel shares are trading at 15x their 2007 forecast earnings. M1 is trading at 13x and shares in Hong Kong-listed China Telecom at 14x.
Mittal last month downgraded his rating on the stock to "hold" from "buy," citing the surge in its stock price and growing competition in the domestic market. He has a target price of $3.37.
Yup, Singtel is in the downtrend should try to avoid until up signal appear again.
And so after hearing a few of your views, I can reasonably conclude that that is the general consensus and thus also the prevailing market sentiment about this stock.
My next step is then to sell my few Singtel stocks....
Hope the bear market correction doesn't come too soon...:)
My take is SingTel's px is a bit high now and not much of a chance to move further unless some good news like 'bought into PRC telco business' or merged with one of the Giant Telcos. If that happened, $4/- could easily be history! Cheers!!!!!
iPunter - let's see what happens over the next few days. With so many many Singtel shares in the market, (not forgetting that Temasek is the biggest and has been unloading whenever it hits a high), clearly it's a "Herculean" task for it to hit or breach the $4 "ultra peak". Doubt any broker dares to venture a guess that it will hit $4 . Which fund is that huge or "gungho" to dare to "support" the mkt capitalisation of Singtel at $4?
However, for the sole purpose of argument, it may also be said that the Singtel of today is no longer the Singtel of yesterday... in terms of size, cap, operations, intangibles, etc... So 4 bucks apiece is not too far-fetched.
If u care to check with your remisier or dealer, he or she shd be able to confirm that historically Singtel shares will definitely dip after hitting $3.40 (after every two or three year cycle) or thereabouts. Hoping for the moon to drop on you if it hits S$4(unless its profit this year is many times more than what it had achieved in the past ) It has never hit that peak since being listed, except for the first day of trading when there was a key-in error.
Caution on singtel... trend may be changing soon even though its up today.
And also the one sure and quickest way into the ravine...haha!!!!
How about going downhill in free gear? Saves petrol too.... :)
It is a bad idea to idle in free gear or in neutral -wasting energy and poluting the environment. Let's say now in cruise-control and enjoying the scenery and fresh airs (which is still free..haha) and looking around for new targets...........and of course always ready and prepared to engage anytime. Cheers!
You mean you are in idling in free gear?... ready to engage anytime?... :)
Hahaha.......As you've alredi indicated that it(the px) still remains firm so it is ok to enter in a bull market. I've chicken-out liao and alridi in holidays mood. Cheers!