SPC   

SPC

Lower CO prices = higher refinery margin for SPC 's refinery segment, which is a significant part of their whole business. They own half of Spore Refining Company. Slight increase in the refinery margin (GRM) will translate to a big amount of earnings for them , similarly, higher cost of CO will increase their operating cost.

So if market percieves the other way round, but if financial reports from SPC shows earnings, I hope it would push the price up where it belongs ?

But SPC earnings also tagged to US $ rate to Sing $ , thus it'll need stronger US $ and coupled with a higher refinery margin to have higher chance of earning profit, of course we still have other factors like demand and supply.

Just my Newbie thoughts...

 

IMO, the $10 TP is possible. In refinery business, the lower the price of CO, the better margin the compay has. But then again, the market percieve differently -> the higher the price of CO, the better for SPC. So, to go for FA or market flow is up to individual.

 

gotta ask ML..or rather BOA when it can reach $10..haha

 

CO now at 93, down 7, claiming after Lehman n ML saga. Nite BT said.

 

 

$10...it's not impossible, but what is the time frame horizon? This year, 2009 or 2019?

ozone2002      ( Date: 15-Sep-2008 22:05) Posted:   SPC is one of the more attractive value stocks based on its fundamentals. It is trading at a price earnings ratio (P/E) of merely five times and an attractive dividend yield of over 12 per cent, at the price of $4.88 (as at Sept 5, 2008). Its very attractive dividend yield also makes it a defensive stock to hold in the medium term and value buy in the long run. Indeed, Merrill Lynch's Duke Suttikulpanich feels that there is plenty of value left in the tank for SPC, especially after its recent decline. In a report published on Aug 20, Mr Suttikulpanich pointed out that SPC is 'one of the cheapest' in the regional refining and marketing sector. He expects a rebound in Singapore refining margins from mid September to boost SPC's stock price. 'SPC currently trades at 2008 (expected) P/E of 5.4 times, which represents a 28 per cent discount to regional peers. We firmly believe that this steep discount is unjustified. . . While we concede that the discount seems reasonable in view of SPC's increasing upstream business exposure, we believe the recent correction is overdone,' he added. Merrill Lynch has a buy rating on the stock with a target price of $10.

 

 

SPC is one of the more attractive value stocks based on its fundamentals. It is trading at a price earnings ratio (P/E) of merely five times and an attractive dividend yield of over 12 per cent, at the price of $4.88 (as at Sept 5, 2008). Its very attractive dividend yield also makes it a defensive stock to hold in the medium term and value buy in the long run. Indeed, Merrill Lynch's Duke Suttikulpanich feels that there is plenty of value left in the tank for SPC, especially after its recent decline.

In a report published on Aug 20, Mr Suttikulpanich pointed out that SPC is 'one of the cheapest' in the regional refining and marketing sector. He expects a rebound in Singapore refining margins from mid September to boost SPC's stock price.

'SPC currently trades at 2008 (expected) P/E of 5.4 times, which represents a 28 per cent discount to regional peers. We firmly believe that this steep discount is unjustified. . . While we concede that the discount seems reasonable in view of SPC's increasing upstream business exposure, we believe the recent correction is overdone,' he added. Merrill Lynch has a buy rating on the stock with a target price of $10.

 

thinking of $4.

 

I think it cannot go down much lower, it has come down to early 2007 price, I feel that it should hold $3.96-$4.2. Not vested yet. Do dollar cost averaging if you are have time horizon for the next 1yr.

 

Anyone can do a TA here? How low can CO goes?

 

More oil products, price becomes cheaper.

Quek4T      ( Date: 11-Sep-2008 23:04) Posted: How this reliance refinery will affect SPC? Livermore      ( Date: 10-Sep-2008 21:18) Posted: Reliance new refinery capacity is almost equivalent to whole of Singapore's

 

Don't buy

 

I expected CO price to drop, as Ike passes. Just like Gustav. Despite this, wanna go in (hopefully at the right time) midst this whole crisis meltdown. See price drop how much tmr.

 

I dun believe my eyes...CO dropped $5+...prepare for some rock and roll tomorrow!

 

 

I agree with idesa168. Since recently I have seen that with COSCO and they have been dumping COSCO left right and centre.  One can check their buy calls earlier and after COSCO'S annou. they have been bringing the counter down with their selling.  Poor investors  had to ge the brunt of all their selling.  Sorry guys.  This is the truth.  This is a dirty market, since some have the info and others don't.

 

may ni know where u get the report from?

 

I will short! Of all you know, UOB might be stucked with SPC and trying to sell "koyok" to retailers....my view oni.

aircraft      ( Date: 12-Sep-2008 13:30) Posted:   Report by UOB.  Any comments on this ? Initiate coverage with BUY. stock is trading at a 40% discount to regional refiners. Using sum-of-the-parts valuation, we value SPC at S$7.60/share, implying 35% upside potential and dividend yield of 12.2%.SPC is trading at 5.0x 2008 PE. At this price, the

 

 

Report by UOB.  Any comments on this ?

Initiate coverage with BUY.

stock is trading at a 40% discount to regional refiners. Using sum-of-the-parts

valuation, we value SPC at S$7.60/share, implying 35% upside potential and

dividend yield of 12.2%.SPC is trading at 5.0x 2008 PE. At this price, the

 

How this reliance refinery will affect SPC?

Livermore      ( Date: 10-Sep-2008 21:18) Posted: Reliance new refinery capacity is almost equivalent to whole of Singapore's

 

go down....likely,   more meat to go down......possible. 

Livermore      ( Date: 10-Sep-2008 21:17) Posted: Maybe more meat to go down.....

 

Reliance new refinery capacity is almost equivalent to whole of Singapore's