M1 and Starhub Price Fall – An Opportunity or Value Trap?

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M1 and Starhub are 2 of the 4 telecom stocks listed on the Singapore SGX Exchange.  The other 2 being Total Communications DTAC of Thailand and Singtel.

In recent months, the prices have gone down by more than their average volatility.

This might present a buying opportunity for many or investors may not be aware why the share price went down.

Let me put down some of my thoughts so that prospective investors can see if its useful for their investment purpose.

M1

  1. Current share price: $1.98
  2. Outstanding shares: 930 mil
  3. Historical annual dividend per share: $0.153 (7.7% dividend yield)

Starhub

  1. Current share price: $2.92
  2. Outstanding shares: 1735 mil
  3. Historical annual dividend per share: $0.20 (6.8% dividend yield)

Why did the share price fall?

Stock prices movement is a combination of 2 things:

  1. the change in value of the underlying business
  2. the crowd …
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