At the beginning of the year, NOL and SIA have been enjoying the uptrend because of crude oil have been fallen nearly 60% since Jun 2014.

Perhaps I am too late for the party.

However I still look around for stock that is less limelight compare to NOL and SIA.

Ah ha…. SMRT. How can we forget about our basic need of public transportation system in Singapore.

Furthermore, SMRT as a stock that has many interesting factors coming into play on this stock.

SMRT has apply for fare hikes on 20th dec 2014, Transport Minister Lui Tuck Yew has said fares would not be raised by more than 2.8% on 20th Dec 2014.

Crude oil price has fallen from US 80/bbl to 45/bbl. This could continue to provide a tailwind for earning.

Based on one of the report from DBS Vickers analyst, a 1% decline in crude oil has a 1.2% positive impact on SMRT net profit.

This report was on 4th Nov 2014 and crude oil price was US80/bbl, If you are interested to read the article, please click here

Let us look at the chart…

On 14th Jan (Wed), I have entered SMRT (Long) at $1.595 and 21st Jan(Wed), The Public Transport Council decided to grant an overall net fare adjustment of 2.8%.

This was within T+5 but I decided to add SMRT to my portfolio. Again I have no intention to add SMRT into my portfolio but I got it cheap again.

Nice timing on my SMRT trade.

Talk to you soon,

Best wishes,

Divergence Trader

The post How I Managed My Trade – SMRT (Long) appeared first on Divergence Trader.