Sell off
SCI's share price has been steadily dropping, this follows the general drop in oil prices. However, SCI recently announced their quarterly results and both Marine & Utilities segments aren't doing too well. In fact, the decrease in Utilities profits is larger than Marine's.
Should we be concerned?
Majority of the decrease in Utilities profits is due to the continued intense competition in Singapore. The increase in contributions from India isn't enough to offset the decrease in Singapore's profit.
JIA LAT! How? Many investors are dumping this business (which explains the drop in share price).
SCI closed at $4.19 today, and has been steadily defending the support at $4.20.
The next crucial support is at $4.10.
This seems very TA-ish for me. What happened?
Are you a trader or investor?
Well, I'm still a FA guy. My investing horizon isn't 12 months. I'm not particularly concerned with these fluctuations in prices. Some people, however, love to get excited about the rise and fall of SCI's share price. Since I'm not trading, intra-day fluctuation doesn't bother me much.
I still believe that SCI is a solid blue-chip. It has superb management driving the business. It has gone through the 2008 GFC and bounced back. The pipeline for the Utilities segment is strong and encouraging. Marine should recover in the future (i hope).
Accumulate?
Once it drops to $4 - $4.10, I'm looking to average down on SCI. I've faith that SCI will do well in the next 5 years. I don't particularly like to buy and sell off my holdings too frequently to realise my gains/ cut losses. The most important element in investing is time, and time is our best friend.
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