SATS: Watch the Crucial Support

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
Estimated P/E(03/2014) 16.7553
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
Price/Book (mrq) 2.5450
Price/Sale (ttm) 1.9475
Dividend Indicated Gross Yield 3.49%
Cash Dividend (SGD) 0.0500
Dividend Ex-Date 11/19/2013
5 Year Dividend Growth 1.39%
Next Earnings Announcement 02/11/2014



Company Industry Sector
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).

Leave a Reply