$SINGAPORE TECH ENGINEERING LTD(S63.SI)$
For me, I think ST Engineering Limited will be bullish for the longer term outlook. This stock may have been sold down recently on concerns of its high gearing and rising interest rates. However, the stock's fundamentals remain very healthy.
ST Engineering continues to maintain investment grade credit ratings. This implies relatively low funding cost, with net interest cover of 7.4x in FY22F. They have a strong order backlog of $22.2B as on June 2022 and they give a stable dividend payout of around 4.97% at current price of $3.60.
The latest geopolitical developments (e.g., Russia-Ukraine conflict, China and US tensions) have led to a rise in defense budgets in Asia. ST Engineering's Defense and Public Security Segment contributed to 52% of its FY21's revenue; an increase of 8% year on year.
ST Engineering's stock price has currently fallen to support levels at around $3.60. There is a very good likelihood of the current downtrend turning sideways from the $3.60 support level to around $3.8~3.9 plus resistance levels as its 3Q results release in early Nov draws closer. The stock's could go up higher after the 3Q results release.
Can consider buying this stock to keep for a couple of months. It seems to have hit the bottom as of now. I am vested here so my views could be biased, DYODD before making any trading decision.
Comments
So, take care Tigers, this could be one of the worst dead cat bounce that you can encounter for this stock! [Comfort]