Yesterday, Mothership posted a viral post focusing on SMRT's huge gains in profits. At a preliminary glance, I immediately thought, "Wah, if this is true, then I better buy into the stock now!"
But then another voice in my head said, "Don't make the mistake of focusing on the stellar results of one quarter. Check whether such a performance can be sustained before you rush to buy."
SMRT shares climbed almost 3% within a day after the results were released, but I'm laughing at those who jumped to buy so soon after the announcement instead of doing a further forward analysis to determine whether going in now would be a wise move.
SMRT has never been (and will never be) on my watchlist of stocks. After reading Mothership's article, I decided to revisit my thesis and investigate if things have indeed turned around for the public transport provider.
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