RadX Moderator May 3, 2012 Share May 3, 2012 Whatever next? Got these in my facebook feeds ↡ Advertisement Link to post Share on other sites More sharing options...
Mustank Hypersonic May 3, 2012 Share May 3, 2012 Whatever next? Got these in my facebook feeds http://www.todayonline.com/Hotnews/EDC1205...e-woes-for-SMRT More woes for SMRT Analysts express concerns about its financial health and moot possibility of re-nationalisation 04:46 AM May 03, 2012 by Tan Weizhen SINGAPORE - Following the release of SMRT's full-year results earlier this week, analysts have painted a bleak picture of the financial health of the troubled transport operator, with a Citigroup report even going so far as to suggest that re-nationalisation could be on the cards. In their report, Citigroup analysts Robert Kong and Ivan Lim said they expect SMRT's balance sheet to tumble from a net cash position to net debt of more than 80 per cent of equity by the 2014 fiscal year, as capital expenditure exceeds operating cash flow. They said: "Having hurt commuter confidence with multiple service disruptions, SMRT also faces zero fare increase this year in a time of rising energy/staff costs and inflation. "Yet the Government continues to push an agenda of curbing private transport forcing more traffic onto an already-overloaded rail network. Thus we sense more drastic actions are needed, perhaps raising capital to shore up finances. We'd even dare conjecture a Government-led end game." On Monday, SMRT reported that its full-year net profit fell 25.6 per cent to S$119.9 million. It added that higher costs of repair and maintenance, energy and staff will continue to hurt its profitability for the next 12 months. Last week, SMRT also announced plans to spend S$900 million upgrading its rail network over eight years, Concerns over SMRT's financial health were shared among the brokerages - at least five have a "sell" or "underperform" call on the stock - with some suggesting that it will no longer be business as usual: UBS said SMRT is highly likely to move to a new rail-network financing framework where it would pay the Government for an operating lease instead of owning train assets, while Maybank Kim Eng suggested that "selective nationalisation" is already taking shape. Maybank Kim Eng Securities analyst Bernard Chin told Today: "A hybrid model, where the Government comes in to inject money, is perhaps the best model possible under the circumstances. It would be like selective nationalisation where the Government pumps in money in certain areas. In fact it is being done already - take for example, the Government co-paying for the buses to help operators expand the fleet." Nevertheless, CIMB research vice-president Lee Wen Ching said that chances of re-nationalisation of SMRT are low. "It is more likely that the current business model is improved, rather than a complete overhaul," she said. Pioneer Member of Parliament Cedric Foo, who chairs the Government Parliamentary Committee for Transport, pointed out that re-nationlisation of SMRT would not only cost the Government a lot of money, it may not address the root of the problem. Describing it as a "wild suggestion", Mr Foo said: "If the Government takes over, who will we employ? The same old workers. It won't solve the underlying problems, which is probably that maintenance processes should be upgraded." Mr Foo also pointed out that in any business, "replacing and maintaining assets is not unusual". He added: "The capital outlay is not going into the drain as SMRT will get returns from re-investing." Yesterday, SMRT shares fell to a seven-month low, before closing 1.2 per cent lower at S$1.66. While SMRT is considered by investors to be a "defensive stock" - providing a constant dividend and stable earnings regardless of the overall state of the stock market - analysts, however, said investors have to brace themselves for lower dividends. A CIMB Research report said: "Plagued by margin erosion and cashflow strains, we see no reason to own this stock. Further, dividend yields are no longer attractive." Link to post Share on other sites More sharing options...
Maroon5 5th Gear May 3, 2012 Share May 3, 2012 did saw overlook the maintenance while she was happily pursuing retail rental income? Link to post Share on other sites More sharing options...
Calvin79 2nd Gear May 3, 2012 Share May 3, 2012 did saw overlook the maintenance while she was happily pursuing retail rental income? doesnt matter for her as she has already landed another job with a big fat paycheck...hahaha Link to post Share on other sites More sharing options...
Galantspeedz Turbocharged May 3, 2012 Share May 3, 2012 mrt slow? how slow? i take mrt today.. ok leh.... maybe later few mins nia Link to post Share on other sites More sharing options...
RadX Moderator May 3, 2012 Author Share May 3, 2012 mrt slow? how slow? i take mrt today.. ok leh.... maybe later few mins nia RT @smrt_singapore: Train service from #Jurong towards #JooKoon moving slower due to track fault.Please allow extra time for travel. #SMRT Link to post Share on other sites More sharing options...
JackRabbit 3rd Gear May 3, 2012 Share May 3, 2012 gahmen will never allow MRT to go into the red... so... once the shares are down, it's time to buy buy buy... because gahmen will make sure SMRT remains cash cow. Link to post Share on other sites More sharing options...
Maroon5 5th Gear May 3, 2012 Share May 3, 2012 doesnt matter for her as she has already landed another job with a big fat paycheck...hahaha its the reenacting of the subprime. the ceos of the failed giants aig, merrill continuing to get million dollar bonuses happening in our own backyard sigh.. Link to post Share on other sites More sharing options...
Rubberpad May 3, 2012 Share May 3, 2012 Whatever next? Got these in my facebook feeds can i add you to my fb???? Link to post Share on other sites More sharing options...
RadX Moderator May 3, 2012 Author Share May 3, 2012 can i add you to my fb???? no thank you...i rather not befriend insects Link to post Share on other sites More sharing options...
Royho1979 Clutched May 3, 2012 Share May 3, 2012 no thank you...i rather not befriend insects Woah Go easy on the insults dude. Insects have feelings too! Link to post Share on other sites More sharing options...
Poker Neutral Newbie May 3, 2012 Share May 3, 2012 KPE jam? there was a bad accident? if not usually it's clear all the way despite moderate traffic Link to post Share on other sites More sharing options...
Poker Neutral Newbie May 3, 2012 Share May 3, 2012 Woah Go easy on the insults dude. Insects have feelings too! Please dont say that! ltr mod start another thread and say newbies come in and tell them wad to do [laugh] Link to post Share on other sites More sharing options...
Ronleech 2nd Gear May 3, 2012 Share May 3, 2012 slow better then stop, isnt it? Link to post Share on other sites More sharing options...
Celicar Turbocharged May 3, 2012 Share May 3, 2012 gahmen will never allow MRT to go into the red... so... once the shares are down, it's time to buy buy buy... because gahmen will make sure SMRT remains cash cow. Not going into the red and being a cash cow are 2 different things. Link to post Share on other sites More sharing options...
Unidentified 1st Gear May 3, 2012 Share May 3, 2012 faster on the ERP at KPE!!!$ $ $ $ $!!! Link to post Share on other sites More sharing options...
RadX Moderator May 3, 2012 Author Share May 3, 2012 Woah Go easy on the insults dude. Insects have feelings too! LOL Vegetable can? He is like a mushroom to me... Link to post Share on other sites More sharing options...
Rubbermat Clutched May 3, 2012 Share May 3, 2012 can i add you to my fb???? We under under one roof, the rubber family. Can we add each other? ↡ Advertisement Link to post Share on other sites More sharing options...
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