I did some more preliminary reading on ST engineering. Here are some of my thoughts: First criteria of cash generating business is fulfilled. WIth the exception of 1 year, every year it generated FCF. Next, it is sustainable. The payout in terms of earnings is usually 0.9 to 1, but for 2013, it is 0.8 What attracted me is the FCF to payout ratio for the last 2 years are low, at 0.65 and 0.72. It seems to me that from 2009 onwards, ST has been able to sustain its growth and dividend payout through its FCF. As for ROE numbers and etc, you can see for yourself that it is high and consistent I then again run a few combinations of DCF calculations based on the very conservative av. FCF of 420 mio for the past 12 years. (exclude the one-off negative FCF year.) ......