"ST Engineering dropped in profit AND revenue, and you're STILL interested?"

Yes, yes, I am.

I was unable to pick this stock up earlier. I'm looking for the price to drop slightly before I do pick some up, and usually, I'd make a post AFTER I've bought some shares, but I'm just going to pen my thoughts on this counter anyway, just because.

I have my eye on this.

Ladies and gents, I give you: ST Engineering.

This particular company is interesting - I'm aware that their net profit experienced a slight drop from the previous year's, due to their weakening shipbuilding business, but moving forward, they still have a pretty good looking order book for 2016 - I believe roughly 3.8 billion SGD is expected to be delivered this year.

Additionally, I've read that the company has been buying back some shares recently. The reason given was to combat share dilution, due to Employee Share Schemes, and they've blown roughly 6 million SGD on these buybacks in the last couple of months. I don't doubt their given reason, but I also do believe that when a company is willing to spend millions buying back its own shares, it believes that the market has discounted the price of its shares too steeply.

Their dividend payouts of 5% have been relatively consistent for the last ten years or so - I would consider this a pretty safe blue chip to invest in.

As of today, ST Engineering closed at 2.99. I'd definitely look into picking up some shares if the price drops into the 2.8 region.


In other news: Singtel and SPH have not let me down yet. KeppelCorp's price is still very volatile, and I expect it might be a long while before it stabilizes again. 

Until next time.


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