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Starhub
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jeremyow
Master |
07-Feb-2017 12:58
Yells: "Passionate business investor" |
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Assuming one has bought Starhub' s shares previously at average price of $4 per share and now it has dropped to current levels of under $3. If one do nothing and continue to hold one' s shares. At potential dividend of 16 cents per share from this year onwards and assuming dividends for next few years remain stagnant at 16 cents per share and Starhub' s share price continues to trade around $3 per share taking into account its financial performance remains stagnant over the few years, an investor will need slightly around 6 years to breakeven on the fall in share price from $4 to $3. Now, it all depends on how Starhub will perform this year and next few years. If financial performance remain stagnant, then its share price may also remain stagnant. It is just that realistic. Share prices move according to the earnings of a business. Stagnant earnings result in stagnant share prices. Investors who buy into Starhub' s shares now will hope that its financial performance can improve over the next few years. If not, why buy into the shares and watch the share price remain stagnant and it may take a while for dividends to cover over the fall in share price? The same goes for O& G stocks which have been bashed down in their share prices over the past three to four years. For many of them, their share prices continue to languish at a lower level. Collection of dividends alone can barely breakeven on the fall in share prices. So, whenever there is a fall in share prices, it really set back the returns of an investor. He may find that it is just wasting time for the share price to recover and dividends will take a while to cover back the loss from the fall in share prices. Of course, one may argue that Starhub is not of the same breed as cyclical O& G stocks. I would say that as long as the share price languish for a few years, whether defensive or cyclical, it does not matter at all. The investor would have lost his time in waiting for the share price to recover and relying on dividends may take a while to cover back the sustained loss from the fall and languish in share prices to recover slowly a paper loss. One to two years maybe still good waiting time to be patiently waiting for recovery in share prices. But what about waiting five years until there is an increase in earnings and thus a catalyst to the increase in share price? If one has the patience to wait for five years, so be it.  For those who entered at higher share prices of $4 and more, the wait maybe long to recover any paper losses. But for those who entered at current levels of $2.75, maybe the wait is still ok for a dividend yield of around 5% even if share prices were to languish at current levels of around $3 per share for a few years. 
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earlybird14
Supreme |
07-Feb-2017 11:13
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Individual shall do own due diligence. 4 cents is given by StarHub as guidance. Since they cannot maintain 5 cents, where give you the confidence that they can pay 4 cents after 4th telco join the game.
5% dividend is great? Since yesterday till today, 2 day how many percent has dropped? From 4 plus dollar till today 2.75, how many percent has dropped? 5% really so great than StarHub won't drop from 4 plus to say 2.75, and nobody can guarantee if will they drop below 2 with the challenge ahead.
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earlybird14
Supreme |
07-Feb-2017 11:04
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54 mio profit is 0.32 earning per cent.
StarHub must earn 4 cents average per quarter in full year to pay 4 cents. If last Q 0.32 eps is their best eps for the following quarters, do you still think you have 16 cents? Why market dump even StarHub promise to give 4 cents? Market worry after 4th telecom join, StarHub may not even able to give 3 cents
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seanpent
Supreme |
07-Feb-2017 10:55
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angmohlin
Veteran |
07-Feb-2017 10:53
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StarHub with the current price of 2.74 & dividend of 16 cents, the yield is 5.83%. Vested for quarterly income.  |
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seanpent
Supreme |
07-Feb-2017 09:36
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seems gonna see technical recovery for Starhub ..... M1 turning positive already  .....
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eric998
Supreme |
07-Feb-2017 09:09
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good opportunity for those collecting for dividend play.. 6% for at least this year.. not too bad.. better than any other deposits..
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Goblin
Member |
07-Feb-2017 08:28
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Actually the areas of growth for operators are in the Smart Nation, Internet of Things (Enterprise) and Smart Home space. The potential revenues and innovation in this space is HUGE. They should also start exploring models to work and collaborate with the Over The Top Players like Google, Amazon and Facebook to find a win-win common ground instead of competing. These are something that IMDA could have helped facilitate and heavily invest to help drive innovation in the mobility space. Introducing new operators just divert the existing operators attention to fight for survival. When you are fighting for survival, your mgt team is not going to entertain innovations.  
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famouspinky
Supreme |
06-Feb-2017 19:07
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How can supply exceed demand be good. After this, most wil say dont say like keeping big secret. More shit will come. What i dont like is after losing every businesses, taxes on commoners r heavy. Very heavy.
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junction
Master |
06-Feb-2017 18:14
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You have a good idea which the MDA scholars cannot see,.
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happyharvest
Elite |
06-Feb-2017 15:48
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There' s many scholar in the public sector. Must trust them. They are scholars! haha
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Goblin
Member |
06-Feb-2017 15:44
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I don' t understand why IMDA believes that introducing a 4th operator into such a small market would drive innovation. We have seen it in markets much bigger than ours that when you flood the market with too many operators, the price drops so much that there' s basically no business case to invest or test out anything that' s innovative. The operators will be so stretched in fighting a price war that they wouldn' t have any further ammunition to innovate.  Maybe it' s time for M1 and Starhub to merge :-). |
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lifeisgood
Supreme |
06-Feb-2017 13:03
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So many people have cut the cord, either going Netflix, Hulu or some free live streaming sites. And data packages are going commoditised. And who is still making long distance phone calls? Whatsapp call and Skye calls are free. Looks like Starhub biz is facing challenges from all fronts.  |
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anthonykwong
Supreme |
06-Feb-2017 12:55
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To me, this company "lack strategic ambitions" "seems contented to stay in Singapore Only"
Singtel is different. |
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alexchew
Master |
06-Feb-2017 12:51
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With lesser overseas call charges, revenue is going to come down soon.  |
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leongyan
Master |
06-Feb-2017 12:44
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let' s see what M1 and singtel results will be ...
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daylight28
Senior |
06-Feb-2017 11:33
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must thank IMDA for pushing down the telco prices |
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earlybird14
Supreme |
06-Feb-2017 11:26
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4cents is a guidance. It is still subjected performance. If can't earn 4 cents how to give?
What happen today is not due to impact from 4th telecom. It is due to StarHub suicide by posting a shocking bad result before competition start. This already draw a peak level of 3.14-3.16 for 2017 which will not be cross at all till the competition kick in and result out. So, say bye bye to 3 dollars bah.
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eric998
Supreme |
06-Feb-2017 10:58
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When the dust is not settled down, it' s impossible to give target price unless u r insider. But it' s quite clear that starhub is a good dividend play at 4c with price around 2.5-2.7. (5-6%)  
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earlybird14
Supreme |
06-Feb-2017 09:55
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Nowadays, brokers are not so willing to give target price or prediction since market are volatile and most of the time beyond control.
Someone still like to give prediction. But now I would rather provide support and resistance level for short term. With the principal of resistance cannot be broken and force chart to sideline, time to take profit. Support cannot be broken and force chart to sideline, time to buy for next uptrend. So long as level is right know where to take profit or buy in, within a year few time bull bear, still can earn handsome profit, rather than waiting for a N years prediction to come true.
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