Singapore Post

(05-05-2012, 05:37 PM)KopiKat Wrote: I 'cured' my insomia problem by halving my tiny stake on Thu when what I saw as abnormal volume and price increase at around 5pm spurred me into action. It finally closed +2.5ct for the day, which is exactly the same as the latest declared div. I consoled myself (am still a die-hard SingPost fan) that I was only taking my div 1st..

The irony (to me) is that almost 2mths after selling half my stake to cure my insonmia as I see the risk as too high, relative to the rewards. Now, at a couple of cents higher, it's suddenly become attractive to me again as the rest of the Dividend Yield stocks in my tiny universe had gone up more.

IDA has revised the Quality of Service (QoS) framework for postal services and upped the financial penalty for breach of the QoS standards. This revised framework will take effect from 1 July 2012.

The current penalty is S$1,000 to S$5,000 per month per indicator. The increased financial penalty can be up to S$50,000 per month per indicator. Please refer to the news for further details. There is no mention in the news report of whether SingPost agreed to the revision. There is also no mention of the estimated impact to the gahmen's coffer.

(29-06-2012, 10:02 PM)wsreader Wrote: IDA has revised the Quality of Service (QoS) framework for postal services and upped the financial penalty for breach of the QoS standards. This revised framework will take effect from 1 July 2012.

The current penalty is S$1,000 to S$5,000 per month per indicator. The increased financial penalty can be up to S$50,000 per month per indicator. Please refer to the news for further details. There is no mention in the news report of whether SingPost agreed to the revision. There is also no mention of the estimated impact to the gahmen's coffer.

IDA will not finalize a revised framework without consulting a major player in the industrial. I pretty sure SingPost is consulted.

Base on the report, SingPost was fined $10k in total for failing to deliver all letters by the second working day in Nov and Dec last year. If similar failure happen this year, the fine will increase to as much as 10x which is $100k?

(vested)

I have casted my vote of confidence on the SingPost's new management by increasing holding of SingPost with price @ S$1.04 recently (with fund from switching )

The Q1FY2013 result was announced on 30 Jul

http://info.sgx.com/webcorannc.nsf/Annou...endocument

The direction the new management opted is necessary and critical, to avoid Singpost to become a dinosaurs. The dividend yield will sustain and the price is good which are critical as anchor stocks

(05-08-2012, 05:07 PM)CityFarmer Wrote: I have casted my vote of confidence on the SingPost's new management by increasing holding of SingPost with price @ S$1.04 recently (with fund from switching )

The Q1FY2013 result was announced on 30 Jul

http://info.sgx.com/webcorannc.nsf/Annou...endocument

The direction the new management opted is necessary and critical, to avoid Singpost to become a dinosaurs. The dividend yield will sustain and the price is good which are critical as anchor stocks

This stock has been one that I have always wanted to look into further though I have yet to find a time for it. I do believe that the sunset is overated based on my personal belief and not facts.

I am just worried about how they are going to spend their cash raised from perpetual, of which no clear direction has been seen

(05-08-2012, 10:11 PM)shanrui_91 Wrote:

(05-08-2012, 05:07 PM)CityFarmer Wrote: I have casted my vote of confidence on the SingPost's new management by increasing holding of SingPost with price @ S$1.04 recently (with fund from switching )

The Q1FY2013 result was announced on 30 Jul

http://info.sgx.com/webcorannc.nsf/Annou...endocument

The direction the new management opted is necessary and critical, to avoid Singpost to become a dinosaurs. The dividend yield will sustain and the price is good which are critical as anchor stocks

This stock has been one that I have always wanted to look into further though I have yet to find a time for it. I do believe that the sunset is overated based on my personal belief and not facts.

I am just worried about how they are going to spend their cash raised from perpetual, of which no clear direction has been seen

I am no clearer insight on how they are going to spend the cash reserve, but with records of the last few investments which are lead by new management, prudent is the key word.

IMO, the "diworsification" is highly unlikely.

If you check out the background of the new management team, a couple of them came from management consulting backgrounds. Definitely you will be able to see some streamlining of processes, improvement in margins etc. But the big question is the segmetal margins. If you look at the logistic segement margin versus the postal segment and knowing that the logistic or postal business is extremely volume driven, it will be a miracle if the logistic business can outperform postal business one day. It is like how a max 15% business can be streamlined to compete with a 40% margin business? My 2 cents.

(06-08-2012, 11:36 AM)mrEngineer Wrote: If you check out the background of the new management team, a couple of them came from management consulting backgrounds. Definitely you will be able to see some streamlining of processes, improvement in margins etc. But the big question is the segmetal margins. If you look at the logistic segement margin versus the postal segment and knowing that the logistic or postal business is extremely volume driven, it will be a miracle if the logistic business can outperform postal business one day. It is like how a max 15% business can be streamlined to compete with a 40% margin business? My 2 cents.

+1

(06-08-2012, 11:36 AM)mrEngineer Wrote: If you check out the background of the new management team, a couple of them came from management consulting backgrounds. Definitely you will be able to see some streamlining of processes, improvement in margins etc. But the big question is the segmetal margins. If you look at the logistic segement margin versus the postal segment and knowing that the logistic or postal business is extremely volume driven, it will be a miracle if the logistic business can outperform postal business one day. It is like how a max 15% business can be streamlined to compete with a 40% margin business? My 2 cents.

I totally agree with you on the current management effort of streamlining and improvement of margins. It is happening now and expected to continue in the future

A rational investor of SingPost will not expect logistic segment to replace mail segment overnight, not even in short term (<5 years).

IMO, the rational strategy is to maintain mail segment as far as possible, while to grow other segments. Base on last Q1 result, the mail segment op profit reduces (-4%), logistic increase (+54%) and retail increase (+75%). It look impressive but the logistic and retail segments base are much lower than mail segment, but if trend continue, it is not inconceivable for logistic + retail > mail in op profit in future.

thta is the next 10 years. would u want to own a log player like freight links or cougar log.