Tuesday, December 10, 2013

Recent Actions - ST Engineering X'mas Sale

First warchest for ST Engineering activated and my first X'mas present for the month :)



I entered a small position for ST Engineering today at $3.80 after a few days of general continuous decline in the STI market.

ST Eng has always been a stock that I've always liked due to its defensive nature. 

I've previously bought and sold the stock for massive profits and now I am glad to have them back at a price I am comfortable to hold them again.

At current price, they are slightly below the 5 years historical PE mean of 20.62. With the overall market declining, there could be potentially more meats to go down. At that point, I will accumulate a few more of this potentially strong stock.


5 comments:

  1. Hi B,

    Coincidentally, I am also looking at ST Eng now. However, I am still waiting for more favourable valuations before I bite. Don't know if I am being too greedy here. =)

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    Replies
    1. Hi HWW

      I think it's not compelling valuations to be honest. But i've always wanted to have a position in ST Engineering in favor of the US strength play. It's been a resilient stock also for a number of years now. So I am not too worried so much :)

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    2. Hi B,

      You used to have SIA Eng. What's your view on SIAE compare to STEngg? Though is not apple to apple comparison. Just curios to know why you choose STEngg over SIAE.

      Cheers!

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    3. Hi Boonchin

      You are right. I used to have SIA Eng in the past in my portfolio but have since sold it. If the price is right, I may own the stock again.

      I don't have a hard figure with me but across the past couple of results, the core earnings have been dropping while the JV and Associates profits have been increasing making up for the drop in the former. I'm not the expert in this field, so I can't predict the growth forward.

      I chose ST Engineering because the business is more linked to the defensive govt sector and foresee portions of their recurring business ongoing. Having said that, I've heard from another blogger that earnings and dividends growth have been stalling for the past 10 years, averaging only about 3% growth.

      I hope this helps :)

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    4. Hi B,

      Thanks for the insightful reply :) I love both STEng and SIAE and would like to buy during recently market correction but with limited fund, am in dilemma. Will see if Mr Market is Monday blue :P

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