Get someone qualified to fix the sorry state of our MRT.

I have said before in my blog I am not averse to companies I am invested in paying their top executives top dollar if they are worth the money. However, when it is obvious they are not worth the money, we should replace them.

I have been ranting a bit on my FB wall recently regarding SMRT after the massive breakdown a few days ago. It has gone beyond being a bit of an embarrassment and mere inconvenience. I think it is really unacceptable.

From my FB wall:

"Highest pay for SMRT CEO ever = Largest MRT breakdown ever?
What is LTA going to do? Slap SMRT with a big fine again?
Who is bearing the burden of the fines? SMRT shareholders!
Why not consider slapping the CEO with a fine?"

Enough is enough. It is time we get someone who can do the job properly to lead SMRT. It might have to be a foreign talent if no Singaporean has the knowledge or experience to do the job well.

Which is less embarrassing? Admitting that we need foreign talent or having a MRT system that keeps breaking down?

Related post:
MRT nightmare at Bugis.

SMRT: Breaking every support.

The one and only time I ever blogged about SMRT's stock was in January 2012. Back then, I said that the downtrend was intact and that we could see the share price go lower. That was really a reading of the short term charts. Nothing could have prepared me for what I see today.

SMRT's share price is breaking every single support level and I won't be surprised if it should test the next support at $1.035 soon.

Click to enlarge.

If Maybank Kim Eng is right, SMRT's stock is now only worth $0.60 a share and they arrived at that target price using a PE ratio of 14x. So, even at $0.985 a share which is another support level, SMRT's stock is way too expensive. Yikes!

In the short run, there could be a bounce in the share price as I see higher lows in the momentum oscillators. Selling pressure could ease a bit for a while but the downtrend is very much intact.

Short sellers could renew their efforts in the event of a rebound in share price and they would probably do so as close to the resistance as possible. They could use the 20d MA as a guide and that is at $1.16 now.

Looks like it is going to be a long and bumpy ride down for SMRT's loyal shareholders.

Related posts:
1. SMRT: Downtrend intact.
2. Do not love unless it is worth the loving.
3. When to BUY, HOLD or SELL?

SMRT: Downtrend intact.

Technically speaking, SMRT doesn't look good and I am not referring to its trains stalling. OK, bad joke.

Lower high and lower low in price are accompanied by a lower high and lower low in the MACD which is in negative territory. The downtrending MFI suggests reduced demand as the 50% line acted as resistance.

However, forming a doji provides some encouragement for long holders. The doji represents indecision and is a stalemate between bulls and bears.

That the doji formed despite higher volume on a day when price went lower than the low of the previous session suggests that there is some buying support. However, it could also be traders covering their short positions ahead of the weekends.

Single stick reversal signals are usually less reliable. For anyone who is interested in going long here, look out for confirmation next Monday.

If the signal is not confirmed, a lower low could form. $1.70? Perhaps.