Shares & Derivatives
Straco: My thoughts on it buying Singapore Flyer
By Sillyinvestor  •  August 29, 2014
I think Straco has proven itself to be a cashcow with good business fundemental. I also think Singapore Flyer is a good buy relative to cost, and also Singapore Flyer hold great potential. However, I think upside is rather limited from here onwards. Straco is a cash cow, It is increasing its dividends, and many believed it can be a grower with its acquisition. While Flyer is a great tourist attraction, it is loss making and will not yield results in the near future. So the attractiveness as a dividend grower is lost. Current valuation based on yield is not attractive. Hence it is hardly a stalwart or dividend play It is not an asset play. It is a grower play. But as It is trying to do a turnaround, the grower theme has to change. It is a longer term play with risk involved with the timing of turning ......
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By Sillyinvestor
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