Singapore Post: Sell This Ugly Duckling
Source: SeekingAlpha
2025-03-28 18:15:39 ET
Summary
- Singapore Post's stock gained 12.8% since my buy rating in September, with a 21% gain in SGD and 18% in USD.
- The sale of the Australian business for A$775.9 million aids debt repayment and enables a special dividend, enhancing e-commerce growth in Singapore.
- Despite debt reduction, the divestment increases reliance on struggling Singapore operations, leading me to downgrade the stock to a sell.
- Locking in a 13% gain is prudent as the reshaped business lacks investment appeal and poses a significant downside risk.
In September, I covered Singapore Post Limited ( OTCPK:SPSTY ) with a buy rating. Since then, the stock has gained 12.8% on a flat market. Since the OTC listing at times lacks liquidity, I also carefully consider the performance of the home listing where Singapore Post trades under the ticker S08 or SPOS.SI . In SGD, the stock gained 21% and 18% in USD. So, investing in the home listing was more beneficial....
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Singapore Post: Sell This Ugly Duckling
Singapore Post Ltd ADR
NASDAQ: SPSTY
SPSTY Trading
0.0% G/L:
$6.17 Last:
160 Volume:
$6.17 Open:
