Monday, March 30, 2009

Cash Generating Ability of Singapore's Blue Chips...a Snapshot

We have compiled a list of STI Component counters showing their Cash from operations from year 2004-2008. Primarily, it is to compare the trend and consistency of their cash generating ability over the years. Please take note that the compiled charts are taken at face value from Reuters. And when we mean "face value", we mean take it with a pinch of salt ( like how you should treat what SGDividends, Analysts, your stock broker, e.t.c says). Treat us like some noise in the background and really go verify the facts and do your own due diligence..come on..don't be a pig. Pigs get slaugthered unless they can fly away. Anyway, read the comments at one of our post to understand why we say what we just said...... thanks to that nice chap who alerted us on our mistake in that post.....

Also pls note that we did not include the 3 banks, UOB,DBS,OCBC in the document below. This is due to a small voice that told us not to do it and this is a personal issue....don't ask.

So just what exactly is Cash Flow from operations? Cash flow from operations is the cash that a company generates through running its business. It's generally a better measure of a business's profits than earnings because a company can show positive net earnings (on the income statement) and still not be able to pay its debts. It's cash flow that pays the bills. Its the real mc-coy...unless that company is some certain S shares that just pluck digits from thin air..
Cash Flow From Operations 1
Cash Flow From Operations 1 sgdividends Taken from Reuters.At time of compiling, Data for Cosco and Comfortdegro was unavailable from Reuters for year 2008.

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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
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2 comments:

  1. Professor VApril 1, 2009 at 6:40 PM

    Hi,

    Ideally, if you are looking at Cash Flow you should really be looking at 1997 and 2003, so starting off with 2004 is not good enough.

    ST Engineering for example, did very poorly in the 1996-1999 period.

    Semb Corp actually slipped into negative territory in 1998, as also Keppel Corp.

    Similar story with Keppel Land.

    SPC slipped into red from 1999 till 2001

    Or maybe, these are not really blue-chips.

    ReplyDelete
  2. SGDividendsApril 1, 2009 at 7:36 PM

    Hi Professor V,

    Just randomly chose Sembcorp and SPC to look at. Sembcorp for 1997/1998 annual report and SPC 2000 annual report....their cash flow from operations are positive leh...as in there is cash inflow.....refering to cashflow statement.

    Maybe u are refering to profits found in the income statement?

    ReplyDelete

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