The email address in "Contact AK: Ads and more" above will vanish from November 2018. No new email address will be provided. Contact me using Facebook. - AK


Financial security in Singapore plain and simple.

Singapore retrenchment: Will Malaysia share the same fate? Reader: I found your blog over the past week, and I have been looking ...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.


"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09


Recent Comments

ASSI's Guest bloggers

Invested in ST Engineering at the right price.

Friday, February 24, 2017

Reader says...
Hi AK,

I remembered you mentioned ST Engineering in one of the session (Evening with AK and friends) a couple of years back (2015) and shared that through one of your readers, you have a greater understanding of their business model. 

At that point, you mentioned you would look at entering the market if it goes below $2.9 per share, it was hovering around $3.2.

It was my first time attending your session so my memory is pretty hazy. 

But I am hoping if you can shed more insights in how you look at valuing ST Engineering? 

I managed to scoop a little shares at $2.7! :)


AK says...
Hi YC,

That was probably many moons ago. $2.7 a share is a very good price. 

I would hold on to it. ST Engineering is a good income generating asset. :)

I shared how I valued ST Engineering using PE ratio before. 

I said this towards the end of 2014 when ST Engineering was trading at $3.30 a share:

Best wishes,

Although I continue to be invested in ST Engineering because I like the consistent and meaningful dividends, to add to my investment, I will not pay more than a 20x PE ratio. 

With FY16 earnings per share (EPS) at 15.6c, that means I would not pay more than $3.12 per share.
Related post:
Mystical art of wealth accumulation.


AK71 said...

Knowing the value of a stock helped this reader to buy at a right price.

Price is what we pay. Value is what we get.

AK71 said...

Reader says...
Is it a good price to buy ST Engineering now?

AK says...
Valuation can be subjective and, often, it is.
You should have your own idea on how much something is worth.

Monthly Popular Posts

Bloggy Award