SPH   

SPH

   My view is that SPH is still consolidating within a wedge formation. I will take a bullish view only when it breaks out of the formation convincingly above $4.10. Just sharing.

 

SPH now has a strong support at 4.00 (50 EMA). Basically, can see it cheong from this baseline! The cross over of short (5EMA) over long (50EMA) took place on the 1st of sept. Bullish signal

 

SPH management are under pressure to perform, hence the share price can only go up in medium to long term

 

Schibsted is afterall reputed as the most successful media company in the world to have moved online from traditional newspaper publishing, and today deriving 35% of operating profit from the online business. Schibsted's CEO was quoted in the newspapers as saying it was hard work and after years of losses. Schibsted was reported to have had to turn away delegations of foreign newspaper bosses seeking to find out how they have done it.



This is a good initiative. However, the devil is in the execution.

 

With the latest news and strong DIV in December, SPH looks positive.

 

SPH and Norwegian media group Schibsted ASA will form two JV firms in a bid to develop their online business, including online classifieds, search directories and other internet opportunities.



Each group will invest over US$2m initially to set up a regional JV company 701Search Pte Ltd and a JV in Singapore, SPH Search Pte Ltd.



701Search will be equally owned by SPH unit SPH Interactive International Pte Ltd and Schibsted International Classified & Search AS. SPH Search, on the other hand, will be 75%controlled by SPH Interactive with the remaining 25% held by Schibsted International.



"We envisage that with the growing internet penetration, we will be able to secure opportunities to increase online advertising revenues," SPH CEO Alan Chan said in a statement.

 

KE said it has raised its target price to $4.90 given expectations of higher dividend yields and the positive implications of its decision to ride on the property boom.



"The stock will remain a preferred pick for the unadventurous. Sharp discount to sum-of-parts value of $6.34, coupled with sustainable strong dividend yields, provide much comfort for value investors," KE analyst Stephanie Wong said in a note.

KE welcomes the company's decision to redevelop Times Industrial Building into an upmarket condominium, but it sees little risk in it diversifying into property development.



"Management was quick to ensure investors the decision to redevelop instead of ithe mmediate sale of the freehold site was purely on opportunistic move, in view of the sustained recovery in the high-end property market," Wong said.



"It is becoming clearer now that SPH will be riding the property market up-cycle, choosing to hang on to The Paragon (worth $1.52b or $0.95 /share) for capital valuation appreciation," Wong said.



But she added that shareholders' value enhancement could still come from capital management initiatives as SPH may opt to trim its $1.1b investment portfolio, or sell its 14% stake in M 1,  probably to Keppel T&T.



She said the brokerage's new target price implies a year to August 2007 dividend yield of 5.5%. KE forecasts SPH will post $452.2m net profit in the current year, from a forecast of a $423.2m  profit for the year to August 2006.

 

UOBKH says it has lowered its rating for Singapore Press Holdings (SPH) to "hold" from "buy" and cut its target price to $4.36 because the newspaper publisher's advertising revenue remains weak. The brokerage has downgraded the stock even though it expects SPH to pay a final dividend of $0.15 when it announces next month its results for its financial year ended August.



"Beyond the year-to-August-2006 final dividend, SPH's share price is likely to languish. However, we expect its share price to trade in a tight range, as the downside is capped by a high net dividend yield of 5.4%," UOBKH said.

 

Goldman Sachs said it is keeping its "sell" rating with a target price of $4.10 as it believes the media company's plan to redevelop its freehold property on Thomson Road into an exclusive, 43-storey residential condominium has a neutral rather than a positive impact on its share price, compared to selling the property outright.



"We believe that many investors had hoped SPH would sell the raw land and distribute the proceeds as special dividend, and may therefore view SPH potentially maximizing (the property's value) but certainly delaying the dividend as neutral rather than positive for the stock price," Goldman said in a note to clients.



Goldman said it estimates SPH would be able to generate sales of $250m from the proposed residential condominium, which is not sufficiently higher than the $200m SPH is estimated to generate if it were to sell the property outright.

 

Signals still mixed for SPH... wait a few more days.

 

It plans to build a 43-storey luxury condominium. It has obtained provisional permission from the URA for the development of its site at Thomson Road. The site has a floor area in excess of 660,000 sq. feet.

 

The TA trend is hard to tell... a little mixed. But there is a chance of price moving upwards. Wait a while longer to see what happens

 

I think if SPH can maintain at this level for the next week, it will properly starts to move up steadily. Looking at the past records, DIV payout is in Dec and the share is usually high during that period.  Hence, I would think that investers will properly start to accumlate very soon.

Any comments ?

 

Thanks for the clarification! i was thinking it has been downtrending & would reverse upwards from here! Kim Eng today recommended buy cos from their charts, the view is that SPH would rebound from here ..

 

Hi all,

Actually I think there's higher chances of a downtrend occuring than an uptrend.

 

Thanks singaporegal for your confirmation!

& jessie, i am hoping for an uptrend .. but i am not vested yet!

 

SPH is at its 2 year low now, I think.  

 

Up or down huh ?

 

Yes... very likely.

 

trend reversal soon?