02-08-2011, 06:07 PM
There is hardly any point in buying SMRT at current prices for yield since Vicom offers similar yield with a much lower payout ratio. The key reason to buy is for the possibility of profit growth as circle line goes fully operational thereby attracting more people since more locations are accessible compared to the past. The fare hike should help their margins as well. Not sure about their overseas investments though.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.