Can SingPost share be your ticket to financial freedom or is it a value trap in the making? Perennially seen as a dividend counter, SingPost stock should have many supporters. But reality started to sink in for investors as SingPost share price plunged to a 10-year low recently.
On 28 December 2018, SingPost share price was trading at the level of $0.90, a complete disaster as the counter saw a massive correction of almost 30% since the start of the year. Indeed, the devastating spell of run for SingPost share price must be giving investors plenty of sleepless nights.
Defending SingPost share price
A reassuring note to SingPost investors is that the management religiously conduct share buy-backs throughout the year. Since January 2018, a series of share buy-backs saw the treasury shares rising from 9.3 million to 21 million in December 2018. The share buy-backs had provided much support for SingPost share price, which could have suffered a worse form if not for the share repurchases. Obviously, the case for SingPost share price is not unique as numerous counters were affected by the recent market sell-offs. But for SingPost, the correction started long time ago. In January 2015, the shares were trading at a sky-high of $2.14. However, a series of events combined to knock SingPost share price to the current dismal level. Thus, to attribute the poor form of SingPost share price to the toxic market condition may not be accurate.
Given the current situation, would SingPost be privatized? One cannot rule out such possibility against the backdrop of a slew of buy-outs for companies linked to Temasek Holdings in recent years – SMRT, NOL, Tiger Airways and M1. There may be impetus for privatization as both Alibaba Group and SingTel hold the key in reviving the ailing fortune …Read more