SATS is holding well during the January 2014 worldwide sell off. The key question is: How Long can SATS continue to hold and avoid being sold off?
Base on the chart, SATS is currently trading in a Rectangle and also the Descending Triangle with a crucial resistance turned support zone between $3.07 and $3.10. This support zone coincides with the 61.8% Fibonacci Retracement Level. Upside is very limited as there are many resistances (20D, 50D, 200D SMA), Rectangles resistance and the Descending Triangle resistance from $3.16 to $3.24.
Original post by Marubozu from My Stocks Investing Journey.
Fundamental Data for SATS
|Current P/E Ratio (ttm)||18.7500|
|Relative P/E vs. FSSTI||1.4917|
|Earnings Per Share (SGD) (ttm)||0.1680|
|Est. EPS (SGD) (03/2014)||0.1880|
|Est. PEG Ratio||1.7656|
|Market Cap (M SGD)||3,532.90|
|Shares Outstanding (M)||1,121.56|
|30 Day Average Volume||916,733|
|Dividend Indicated Gross Yield||3.49%|
|Cash Dividend (SGD)||0.0500|
|5 Year Dividend Growth||1.39%|
|Next Earnings Announcement||02/11/2014|
|P/E Ratio (TTM)||17.31||19.48||1,065.88|
|P/E High – Last 5 Yrs.||16.87||104.42||43.28|
|P/E Low – Last 5 Yrs.||8.90||30.42||10.59|
Fundamentally SATS is not cheap base on PE Ratio as current PE (TTM) is at the high end of PE High for the last 5 years. Dividend yield at 3.49% is not very attractive as there are other blue chip stocks or REIT with more attractive dividend yield.
Technically SATS upside is capped by the down trend line and there is a danger of breaking the crucial support. It is expected more selling to come if the support is broken. Good candidate to short with price target of $2.90 (Rectangle) and $2.70 (Descending Triangle).