Singtel – What really matters in a Stock

The more familiar the brand is… the more safe it would be??

Diversified Telecommunication Services | M1 & Starhub are industrialised as Wireless Telecom Services – HUH?!?!? | 6 Subsidiaries (Optus, NCS, InSing, Innov8, Amobee, TrustWave) | 1 Partner – Bridge Alliance

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 2.542 ( 1.5 times overvalued)
  • Price to earning ratio :  16.687 ( Over performing – Due to it’s niche industry)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 36.289 % ( Low reliance on debt for growth)
  • Growth Performance : 0.2332% (Low growth rate)
  • Current Ratio : 0.841 ( inability to pay off short term debts and long term obligations, if liquidated now – very weird with such a low debt-to-equity ratio)
  • Cash flow per share : 0.3771 ( And you’re pay $4 a share with a dividend payout of 0.175 per share)
  • Questionable management ability ( Increasing dividend payout | Increasing Net income | Cashflow from operations are decreasing??? choppy numbers?? hmm)screen-shot-2016-10-06-at-12-07-35-pmscreen-shot-2016-10-06-at-12-07-30-pm

There are definitely some fundamental reasons/strategy for all of this BUT…..With such a high premium to pay for at such a low growth rate with questionable numbers….. I choose to say no to conventional ideas on huge corporation.. unless it’s cheaper 🙂 of course why would u want to buy 1.5 times for an “apple” when you get it cheaper and better elsewhere…. if I’m just patient enough…. will patience get you somewhere RICH???

“1 Knowledge point”

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4 thoughts on “Singtel – What really matters in a Stock

  1. Pingback: How will patience get you rich??? – 3 examples |

  2. Pingback: How will patience get you rich??? – 3 examples

  3. Pingback: DBS Group – What really matters in a Stock |

  4. Pingback: Starhub – What really matters in a Stock (Improve”d” edition) |

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