A possible swing trade will be a cut loss below 1.60 and a target of 1.70 or higher. If 1.72 is taken out, then probably it will head towards 1.80 area.
Monday 13 August 2012
SMRT chart
The SMRT Chart actually looks pretty good. While the COI hearing is over (and the key beneficiaries are probably the lawyers), the support at 1.60 is protected. I was actually seriously contemplating buying this for my SRS fund if it drops further but was put off by the current price where the PE is > 20x and the yield is around 4.5%. With a potential overhaul in 'maintenance' regime, probably the operating costs will increase in the coming years but the smrt continues to be the main mode of transport for Singapore and is a 'legal monopoly'. Perhaps a high PE is somewhat justifiable?
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