Overall SMRT managed to improved its Q1 result by 4.7% despite increased costs from almost every aspects of its operations: repairs (30.4% increase), depreciation for 17 new trains (19.9% increase), penalty imposed by LTA & other costs (17.2% increase), staff costs (8% incrase) and lastly electricity, diesel costs (6.5% increase).
Still, the management kept a positive outlook in its 7. Prospects and expect the revenue growth to continue in 2Q, FY2013. The management is also expected to tap on LTA's funding to co-share the $900 million cost of renewing train assets for the North-South East-West Line. A revised fare formula, possibly ready in early 2013 may also bring about some relief to the increasing operation costs.
The positive news results stopped the continuous series of black candles, turning around several indicators. The Force Index showed a emerging bull force in its infancy, MACD bar has been green for a while, and RSI at its oversold position, all in all SMRT should trend up for a while with support line at $1.605.
If the trade goes nowhere, traders can hold on till Nov 12's dividend of est.$0.0175.