Tuesday, June 2, 2015

SINGPOST STOCK: to buy, hold or to sell?

SingPost stock headed up 2.7% to $1.885 on 29 May 2015 after SingPost’s management announced that it will increase the dividends for this stock. I took a look at the chart of SingPost and have noted that currently the stock is trading below the “neck line” of a “Heads and Shoulders” formation. SingPost’s stock price went below this “neck line” on 28 April 2015 and thereafter SingPost’s stock price has declined to $1.83 on 27 May 2015 thereafter which it advanced with a high volume on 29 May 2015, on the date of the dividends announcement. Should SingPost’s stock price continues to advance, I think a resistance for SingPost is at $1.95, which signals a 6.5% capital appreciation from the $1.885 closing price on 29 May 2015. SingPost has been remaking itself, shifting away from the rather traditional business of mail to diversifying its businesses into e-commerce. Fundamentals wise, SingPost’s dividends yields is around 3.32% and is trading at 3.90 Price-to-Book value. Its Price-to-Earnings is 28.4 and with a Debt-to-Earnings ratio of 1.125.

Personally, I feel that if SingPost does not have a price-catalyst, there is still a possibility for SingPost stock to head south, and I think to a price target of $1.75. Fundamentally and technically, SingPost stock does not excite me as there are many other good stocks in the Singapore stocks markets which seems to me more attractive than SingPost stock now. What do you think of SingPost’s stock, feel free to share with us your comments. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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