Shares & Derivatives
Portfolio Update – Add Back Sembcorp Industries
By StockBrokerPlaysPoker  •  July 6, 2015
SCI is down 7% over the last 5 years I previously sold off my entire SCI position at 4.38 after the Q1 results shock, the Utilities segment came as a big surprise as its earnings fell over 20%. As I take another look at SCI, I think they should make around 30 to 40 cents per share this year, much lower than the 45 cents seen in the past few years. If I take the lowest end of the estimate of 30 cents, SCI trades around 12.8 times earnings which is not expensive and close to index levels. Its book value is also $3.30 which may help to cap the down side, but at the current 1.16 times book value... its already trading at historical lows price to book. Next would be dividends... at a 40% payout ratio taken from the 30 cents bear case earnings ......
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By StockBrokerPlaysPoker
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