Tuesday, October 21, 2008

ST Engineering...Is Engineering a lousy choice in Uni?

As of half time 21/10/2008 , ST Engineering is in the top 20 loser counters. Is it because engineering is dead?(go to salary.sg to read more, we are refering to a career in engineering, just to clarify)!

Since the last financial statements, they have been winning:
ST ENGINEERING WINS US$58M MSD-V2 ORDERS FROM US ARMY
ST ENGINEERING’S US SHIPYARD SIGNS PHASE II OF FAST MISSILE CRAFT PROJECT ADDS A FURTHER US$406.5M TO TOTAL CONTRACT VALUE
ST ENGINEERING’S AEROSPACE ARM PROVIDES RSAF TRAINING WORTH S$105M
ST ENGINEERING’S ELECTRONICS ARM WINS S$112M CONTRACT FROM LAND TRANSPORT AUTHORITY .......E.T.C
PLUS.....

Sounds good to look at....but is it good to eat? Let's us investigate.

Gross Profit Margin: 22.6%
Net Profit Margin: 9.39% ( Do you think its high?)

Debt repayment muscle: CA more than CL @ 1.09

Cheapskateness:NAV at 47cents . Last done price now is: $2.34. ( wah still quite glam sia)


Money in Money out: Cash flow from Operation is positive but Free cash flow is negative. (Net cash from operating activities - purchase of property, plant and equipment)

No wonder Engineers are paid so low...relatively..

Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team

3 comments:

  1. I appreciate your earnest analysis - simple and straight-forward. Easy to understand for a novice like myself. Keep it up, mate!

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  2. Great to hear that it is understandable....mate :)....just what we stand for...

    ReplyDelete