SingPost has hit a record high of $0.995 since IPO ($0.60) at this moment. Another half a cent and it will hit the one dollar mark. A new remarkable achievement for this stock. It has been rising steadily ever since that it had decided not to purchase ACCS. Well, it is a good decision by the management or else ACCS will drag down SingPost share. The AGM will be at the end of this month. A good dividend stock, which I don't mind keeping for a long period of time :).
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Their stated min. div. of $0.05 works out to be 5% nett yield even at $1, better than most REIT. The cash cow portion is the postal services, which contributes the bulk of their biz, so it makes a good long term hold. Too bad I missed buying when it dropped during the ACCS saga. Recovered too fast for me to react :)
Don't forget they will loose their snail mail monopoly in a year's time! They need to look for other revenue source. Good thing they are.
The cash cow can still be milked for a while. I doubt there'll be serious competition for snail mail. I'd be more concerned abt their diversification which looks more like 'diworsification' now. Luckily it's only a small % of their revenue now
SINGAPORE (Dow Jones)--Singapore Post Ltd. (S08.SG) and Prudential Assurance Tuesday said they aim to double the distribution network of their tie-up to 38 branches by year-end.
The partnership began in January with 18 SingPost branches across the island offering Prudential's financial planning products and services.
"By the end of the year, we're aiming to double that number," said Kevin Wright, chief executive of Prudential Assurance Co. Singapore.
SingPost customers' response to the collaboration has been "encouraging" and "in line with expectations," he added, without elaborating.
More than 20 million customers visit the country's post offices every year, SingPost said.
Prudential, which already has a similar tie-up with Citibank, Standard Chartered and MayBank, said SingPost will provide it with an extra "access point" to customers and extend its reach into Singapore's heartland neighborhoods.
The postal operator has been diversifying its services - also branching out into other retail and financial services like SpeedCash (pawnbroking) and CashHome (remittances).
SingPost chief executive Lau Boon Tuan said offering such services is part of the company's strategy to "utilize our assets further."
Comments : I wonder how much they are getting fm Prudential for this deal.
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