Yesterday, during my Sniper Stock Trading Course preview, I shared with the audience SMRT is a very good stock for shorting.
Reasons are as follow:
1)SMRT will have at least one breakdown every year without fail. Whenever that happens, it will be fined by the authority. Their already tight profit margin will be further squeezed.
2)As a company providing a public service, their profit will be capped no matter how good their service is. Hence, don’t expect this stock to be a multibagger.
3)As the rail ages and ridership increases, I expect more problem to surface and they will need to replace more expensive hardware and software.
As such, I don’t think any savvy investor would want to invest in it.
For me, I would just short it and collect dividend everyday rather than invest in it, collect dividend once a year and lost half of my investment.
Stop sell using CFD @ 1.38
Stop loss @ 1.45