SMRT

[shanrui_91]

Personally, I don't think all that happen to SMRT is a coincidence. If you think about it, I get the feeling that they are trying to depress the share price.

1 week before announcement of result , they announced the $900m programme without specifying how much LTA will be co-sponsoring. Next their profit drops, dividend cut and they take an impairment of goodwill.

If you are SMRT management, will you announce a $900million plan 1 week before the release of a very lousy result? You could have delayed annoucing it, and at least wait till the % sharing with LTA is confirmed. What's more of the $900m, $200m has been announced much earlier.

Then for their results, they take a full impairment of goodwill which I don't see the reason why they should, unless the bus is going to result in losses for the next 5 years. No one is forcing them to take an impairment of goodwill. Then they still announced a cut in dividend which drastically affected the intrinsic value for those that use a dividend model.

And if you read the newspaper today "Work under way to make MRT system more reliable" , Lui actually says:

"details are being worked out, but broadly, the cost of infrastructural works - such as replacing rail sleepers - will be borne by the LTA". Resleepering is likely to be the major cost of the $900m apart from the signalling system, since resleepering is a project to be carried out until 2019. The $900m is likely to be $600m and below as Lui mentions that infrastructure work will be carried out by LTA.

This is just my personal opinion and speculation, everything can really just be a coincidence. Perhaps SMRT has a management that is not afraid of short-term share price ahead of its AGM