Sheng Siong IPO

Dear Fourmmers,
I have exited on Sheng Siong this morning. A comfortable profit for me over the past weeks.
I attached the extracts from the DBS report. I concur with the analyst that the upside on a FA base is limited.
Who knows. Anything is possible.
 
Technically, we see little or even no upside to the current rally in Sheng Siong shares in the short-term. For short-term
traders who wish to buy, don’t chase at current level. For traders who are already in the stock, consider locking in some
gains and wait to buy at lower level.
Sheng Siong has attracted much attention after its strong
performance since debut but there is increasing likelihood
that the trend could turn from current up to sideways. One
reason why this stock is able to attract interest recently is
because it plans to give 90% of net profit as dividend which
sounds good under the current uncertain macro environment.
DBSV Research does not cover the stock. We note that the
company had highlighted higher operating expenses, a
possible drop in profit margin and a drop in other income in
their prospectus under the section “Prospects Business and
Future plans - Trend information”. Using FY10 historic
numbers (profit S$42.6mil) the current price level at $0.49
would yield 5.8% while historic PE is expensive at about
15.4x. At 5.8% yield, there are alternate choices for investors
to choose from within REITs and telcos. Technically, from here
in the short-term, a 38.2% downward retracement to
$$0.435 or a 50% downward retracement to $0.415 provides
better entry opportunity but not now.

Congrats MacGyver.

This morning, Sheng Shiong is having a rude awakening. Down 7 cents now at 49 cents. Any discerning investor would have side-stepped this stock as it  ran hard and its dividend yield shrunk, and its PE approached 20X.

I heard from my broker that Parkson is spinning off its SE Asia operations for a listing in Singapore.
The issue managers are HSBC and CIMB.
If this IPO is successful, it may create the second wave for Sheng Siong.
Let's wait and see.
For the time being, let see and watch what the US government is doing to save its pants.

MacGyver, at what price would you re-enter Sheng Shiong? It's looking weak again today at 48 cents, down 2 cents.

Would you rather buy S chips at much lower valuation?
The risk is higher but heck they have much less downside than Sheng Shiong.
The valuation for SS is higher, which makes it less attractive even after considering the low risk of the supermarket biz and its solid balance sheet and high profitability.

The dividend payout is 90% of 2011 and 2012 profits but the yield now is around 5-6% only. Qingmei and Eratat have higher yields! and much lower PE ratio (2-4X) compard to Sheng Shiong's 15X or so

This is a heavily manipulated stock, I obught at 37c, sold 55c..and now i bought again at 48c..last wk. Whether a stock is good or not, if BB are not interested, you got to wait a long time for a bull rally for retail invester like us here to buy up the stock... so in the meantime you got stuck here and enjoy your dividend. a stock is only good if it make you money. go for solid liquid stock...and not stock that got weak heart beat and worse no heart beat at all.