SATS

Thank you kbl...

AnYone knows what's the revenue contribution of mbcc operations?

SATS' 4.4% dividend yield is its only attraction, says OSK-DMG

SINGAPORE (Nov 24): SATS' dividend yield of about 4.4% is its only key attraction for investors at the moment, as business in the near term is expected to remain burdened by fewer tourist-arrivals to Singapore from Southeast Asia, capacity cutbacks by airlines globally and a slowdown in Japan, one of its key markets, according to OSK-DMG.
...
http://www.theedgemarkets.com/sg/article...ys-osk-dmg

SATS model over the years have been questionable...

It has not benefited from traffic numbers at Changi airport and other presence they have regionally.

I suspect it has got to do with the rising popularity of budget travelling...

The yield is too convincing and i really think that ongoing yield cannot be supported with declining fundamentals...

Odd Lots Vested
GG

(24-11-2014, 04:16 PM)CityFarmer Wrote: SATS' 4.4% dividend yield is its only attraction, says OSK-DMG

SINGAPORE (Nov 24): SATS' dividend yield of about 4.4% is its only key attraction for investors at the moment, as business in the near term is expected to remain burdened by fewer tourist-arrivals to Singapore from Southeast Asia, capacity cutbacks by airlines globally and a slowdown in Japan, one of its key markets, according to OSK-DMG.
...
http://www.theedgemarkets.com/sg/article...ys-osk-dmg

(24-11-2014, 04:32 PM)greengiraffe Wrote: SATS model over the years have been questionable...

It has not benefited from traffic numbers at Changi airport and other presence they have regionally.

I suspect it has got to do with the rising popularity of budget travelling...

The yield is too convincing and i really think that ongoing yield cannot be supported with declining fundamentals...

Odd Lots Vested
GG

That is correct. Recent growth in traffic since the turn of the decade were largely driven by LCCs at Changi Airport. LCCs do not really have much margins in terms of inflight catering. Before the turn of the decade, rates and to an extent, market share of ground handling came under pressure with CIAS rebranding by Emirates Group and also a 3rd operator.

From dividend yield standpoint, the company had dished out some juicy special dividends in the last 3 out of 4 years (last year was the exception), especially after its Daniels Food divestment during FY12.

I am not sure how much payout is used in OSK-DMG's 4.4% calculation but excluding all its special dividends, i reckon SATS should just be paying ~11cents/share (average as last 8years), that is about 75% and 85% of NP and FCF (1 time accqusitions like SFI in FY09 and TFK are excluded). But then again, IMO, there is not have much margin of safety really.

just curious what is the definition of that 'odd lot' disclosed by geengiraffe

Current board lots are 1000 shares and come Jan 15 will be down to 100 shares... my odd lots are unit shares, ie non tradable holdings...

(24-11-2014, 09:47 PM)pianist Wrote: just curious what is the definition of that 'odd lot' disclosed by geengiraffe

Good morning everyone



full yr results out


http://infopub.sgx.com/FileOpen/SATS_4QF...eID=349828

9cts div.(up 1c...last yr 8cts)

http://infopub.sgx.com/Apps?A=COW_CorpAn...05f0d54939









<vested-oldpot><not a call to buy or sell>

Why it keeps going up?


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(30-06-2015, 10:19 PM)rootorder Wrote: Why it keeps going up?


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I'm puzzled as well.

I took a position at $3 about 6 months ago. When it ran up to $3.40+ due to the slight turnaround in results, I cashed out as I believed it was beginning to be overvalued.

Surprised it went up to current price. The yield is now below 4%. I'm not too entirely convinced of its growth as the LCC industry is getting more prominent. The slight turnaround could be short-lived.

Some institutions and investors could have switched from SIA Engineering to SATS, which could explain the run up in prices.