This company has been going up a lot because of news that Temasek Holdings is looking for buyers to take over this company.
In mid 2013, STATSChipPac closed a KL factory due to profitability concerns, and to consolidate its operations in China over several phases.
In a highly competitive semiconductor industry, STATSchipPac have to constantly invest in new technology to meet its customer needs. And if their foresight in technology goes wrong, it may end up like Blackberry or Nokia.
Source: http://www.straitstimes.com/breaking-news/money/story/stats-chippac-close-kl-plant-laying-1100-workers-20130628
The risks to invest in such company is not going to generate good returns over the long run because the risk over rewards might not be worth it. It has to constantly pump in cash flow to purchase new technology to keep up, and as competitive become stiff, prices of semi conductor products may decrease.
My advice is to stay away from this stock if you are a long term investor. Why would its parent want to sell this company away? The risk just isn't worth it.
Saturday, June 21, 2014
Sunday, June 1, 2014
Singpost recent rally
Singapore post's recent rally had gone up fast after Alibaba announced a acquisition of 10.35% stake in singpost. The news announcement came strategically 2 weeks after singpost release its positive FY2013/2014 results.
Its effort in the e-commerce sector had began to gain traction after it announced its net profit of FY2013/2014 increased of 2.9% as compared to last year and saw its cash flow increased by 14%.
My view to invest in Singpost at the current price of $1.645 may be too rash as the rally lasted for 2 weeks consecutively. The company showed promise with their transformation into the e-commerce logistics solution and i think that is the direction that should benefit investors in the long run as Singaporeans are big shoppers online. In 2011, a survey by Paypal showed that Singapore's online commerce grew 30% from S$1.1 billion in 2010 to S$1.4 billion in 2011.
Source: http://www.asianewsnet.net/Sporeans-are-big-online-shoppers-50429.html
My entry price for this counter should range around $1.10-$1.30 as the rally was a spark of overwhelming media coverage.
Its effort in the e-commerce sector had began to gain traction after it announced its net profit of FY2013/2014 increased of 2.9% as compared to last year and saw its cash flow increased by 14%.
My view to invest in Singpost at the current price of $1.645 may be too rash as the rally lasted for 2 weeks consecutively. The company showed promise with their transformation into the e-commerce logistics solution and i think that is the direction that should benefit investors in the long run as Singaporeans are big shoppers online. In 2011, a survey by Paypal showed that Singapore's online commerce grew 30% from S$1.1 billion in 2010 to S$1.4 billion in 2011.
Source: http://www.asianewsnet.net/Sporeans-are-big-online-shoppers-50429.html
My entry price for this counter should range around $1.10-$1.30 as the rally was a spark of overwhelming media coverage.
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