At this moment, should you buy SMRT?

One of my ex colleague, told me that he is accumulating SMRT despite the current yield is higher than our Singapore bank fixed deposit rate.

I told him to stop it for this year 2013 and monitor SMRT for next year 2014. SMRT CFO has already mentions the operating cost will increase for this year & the upcoming free ride for 1 year to ease the morning crowd, which I believe will incur more cost.

This will impact the dividend payment inclusive the share price & possibility lower dividend paying to the investors, besides a lower yield, at the same time, the investors will also face capital loss from the initial amount they have put in.

At this point of time, is to stay away, place it under the watch list & start monitor it for next year 2014.

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