ST Engineering

ST Engineering - 23rd Feb 2016

ST Engineering has a nice breakout of $2.83 price level and closed higher at $2.86. The volume is also quite high which is generally rather bullish.

The current price of $2.86 is staying above both 14SMA & 25SMA lines which is rather positive.

Also both MACD & RSI are pointing upwards which may provide further indication that the share price may continue to head higher.

Short term wise it may continue to head higher to test $2.95 with extension to $3.05.

   Cash and cash equivalents including funds under management totalled

$1.4 billion.

 Advance payments from customers totalled $1.6 billion as of 3Q2015.

With such a strong and well established company that is capable of securing new contracts even in the midst of the not so rosy economy. Profitable and has been consistently paying out dividends of above 5% p.a.

This could well be considered for a good defensive play investment.

EPS is about 17 cents. Current price of $2.86 is about PE 16.8 times.

Perhaps a short term Target price of $3.30 (PE  19.4 times) is fairly achievable in time to come.

The company is due to report its 4Q2015/Full year result on 26th February 2016.

Hopefully we can expect the company to announce the Final dividend of 11 cents for Full Year 2015 result(same as 2014). Together with Interim dividend of 5 cents , the total dividend will be 16 cents that may be able to achieve a yield of above 5.5% base on current price of $2.86.

(trade base on your own decision)