Starhub – What really matters in a Stock (Improve”d” edition)

As market get wilder, I’ll be trying to do more analysis as I would wanna be vested in such low price!

An integrated info – communications company | It is a subsidiary of Asia Mobile Holdings Pte Ltd | Founded in 1998 (17 years)

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 22.672 (22 times overvalued of its actual value)
  • Price to earning ratio :  14.265 (Growing above industry standard of 9.844)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 429.534 % ( A very high reliance on financing for growth) – 4 times higher than M1 | 10 times higher than Singtel
  • Growth Performance : 7.03% (Better than Singtel by 7%)
  • Current Ratio : 0.948 ( Inability to pay off short-term debt and long term obligation if liquidated ) – Below industry standard (1.135)
  • Cash flow per share : 0.3632 ( You’re pay $3 for this stock) – Singtel has a better cashflow per share
  • Questionable management ability ( constant dividend payout | Poor net income for the past 4 years | Increasing  investing losses in  cash flow management – probably the reason in the drop of net income margin | Average days of payable increase by 5 FOLD?!?!?! Within a year?)Screen Shot 2016-11-16 at 9.44.22 am.jpgscreen-shot-2016-11-16-at-9-40-48-amscreen-shot-2016-11-16-at-9-40-38-am

3)  TECHNICAL ANALYSIS

Screen Shot 2016-11-16 at 9.49.22 am.jpg

Source : Sg.finance

Market currently at 2008 pricing, testing the key level ( Supply turn Demand zone). Market would have two outcome, either break downwards and retest the 2012 levels before confirmation it’s bear trend or it could find demand and retraces back upward.  Remember technical analysis is all about using historical pattern/movement to give you a better winning odd.

So how long would the market go down (If it does)?? My take is that market max drawdown would be to the year 2008 – 2009  (Price range of $2.20 -$2.40) before retracing back upwards…. This is so only if market (management) wakes up and realise is something wrong with their numbers….

4) Would I wanna be vested?

From the tonality of the post you would probably know already… Majority of its number are higher than its competitor (Highlighted in orange), which makes it less appetising for me to be in it.

Talk about Technological/Market Trend:

  • Cable Tv subscribers are only in it because they are lazy to cancel/FREE because of some plans
  • Netflix/Free online movie sources
  • 4th telecom (Better deals)
  • Asia’s Hedge Funds Suffer Highest Withdrawals in Four Years” – Bloomberg (This is actually where people should be more invested) | This is what make market price action more “repeatable” 

  • Market drop to year 2008 price within one year

Hopefully you guys like this “slightly improved” version!

“+1 Knowledge point”

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s