Challenging Times Ahead for Starhub’s Dividends

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When M1 announced its results in end Jan, I went to buy both M1 and Singtel, but I did not buy Starhub. The conventional wisdom is that between M1 and Starhub, Starhub would be better able to manage the competition from the fourth telco, as it has Pay TV, broadband and enterprise fixed services besides mobile services. That is true provided the other business segments are generating stable, … [Read more...]

Is Pay TV Still A Reliable Cash Cow?

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For the past 6 weeks, I have been blogging about the mobile services segment of telcos. It is time to move on to the next segment -- Pay TV. I will analyse Pay TV using Starhub's results, as Singtel has more business segments and operates in many countries. The figure below shows the no. of Pay TV subscriptions in FY2015 and FY2016. Starhub is kind enough to disclose its market penetration rate … [Read more...]

Telcos From A Consumer’s Point of View

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In previous weeks, I have been blogging about telcos from an investor's point of view. This week, the focus will be on a consumer's point of view, which actually provides some useful insights into how telcos price their services. Telco charges (inclusive of handphone, mobile data, broadband and fixed line) have been one of the biggest bugbears for my monthly expenses. Part of the reasons is … [Read more...]

Do Telco Investors Need to Fear the Fourth Telco?

Ever since the Government announced that they would allow the entry of a fourth telco, share prices of the 3 existing telcos have been on a down trend. In Dec 2016, the name of the fourth telco was made known; it would be TPG Telecom. Do investors of the 3 telcos need to fear the fourth telco?   Firstly, some background information about TPG. TPG is the second largest internet service provider … [Read more...]

How well did S-REITs perform in 4Q16?

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As part of our goal to help investors better understand REITs, we are starting a new REIT series that aims to give a good summary of REIT performance during every quarter. We hope that through this “Report Card Series”, you can better grasp the important macro trends and factors that impacts the performance of REITs. While the quarterly reporting for Singapore-listed equities is still underway, we … [Read more...]

The Telco Landscape in Singapore

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The telco regulator in Singapore, Infocomm Media Development Authority (IMDA), regularly publishes a list of facts & figures about the telco industry. It is interesting to look at the figures occasionally to understand the trends affecting telcos and review whether telcos worth investing. Mobile Services To investors of the 3 local telcos, the most important figure must be the no. of … [Read more...]

Diversification – in the name of big money

When it comes to the topic of diversification, many big time investors have opposing views, be it through their words or actions. If you ever know anything about investing and trading (which you probably should), diversification is one of the hottest debates we have ever come across. Today, I’d like to talk more about how diversification has helped me to make money, both actively and passively, … [Read more...]

Why your investing results will never improve

It seems that the average investor has the wrong information when it comes to investing in the stock market. Although one cannot logically dispute general concepts such as “buy fundamentally cheap stocks” and “buy low and sell high“, the typical investor doesn’t have an idea how to use these principles to improve their chances of making money. The problem lies with one group that is … [Read more...]

Can Telcos Stop the Decline in Profitability?

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All 3 telcos have reported their financial results for the quarter ending Dec 2016. Both M1 and Starhub reported a significant drop in net profit of 27.1% and 33.2% respectively while Singtel reported a slight 1.8% rise in net profit. Starhub even dropped a bombshell by announcing that dividends for 2017 will be cut by 20% to 16 cents. Can telcos stop the decline in profits, or will profits … [Read more...]

Stock Pick- It is time to be greedy

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Quote by Warren Buffett “Be Fearful When Others Are Greedy”.  Many people knew it but very few people can do it. Why we do understand but no able to do it?  Because this is human nature. When the stock has stumbled over the past few years, when everyone has lost hope on it, would a normal person like many of us have confidence to invest in it? When every investor is afraid of it and go away from … [Read more...]

Impact of Data Upsize Plans on Telcos

Competition among the 3 local telcos used to be fairly stale, until things started to heat up in Mar 2016 when all 3 telcos launched data upsize plans as a way to pre-empt competition from a potential fourth telco. The upsize plans provide subscribers with more data with the payment of an extra monthly fee. How does that impact the revenue and profitability of telcos? As M1 is closest to a pure … [Read more...]

Trump or Dump?

Ever since Donald Trump won the presidential election in November 2016, stocks have been on a roll, going higher and higher. Just about a week ago, the Dow has rallied past 20,000. Most investors believe that Trump is a boost to the economy as he pledged to spend $1 trillion on America’s aging infrastructure, cutting corporate taxes, and deregulate industries. However, it seems like the Trump … [Read more...]

Impact of SIM-Only Plans on Telcos

I recently switched my telco subscription plan from the regular ones to SIM-only plans. How do these SIM-only plans impact the revenue and profitability of the 3 local telcos? Before we begin, let me explain what are SIM-only plans. As the name implies, SIM-only plans only provide voice, SMS and data but do not come with subsidised handphones. The tables below show the amount of voice, SMS and … [Read more...]

Sabana Reit (On A Skyfall)

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Looking at the price action of Sabana Reit, I was quite astonished by the steep fall whereby their peak was around $1.20 in 2013 and is currently trading at $0.35. It have been on a steady decline since 2013. Part of the recent fall is due to a rights issue of 42 for 100 at $0.258 which will be used to finance the purchase of 3 new industrial properties. Background: Sabana Reit was listed … [Read more...]

New year, new start, same old, but still the most accurate stock market forecast for 2017

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At the beginning of each year, there are many pundits, experts, self-proclaimed gurus, and other suspicious characters who’d like to sell you stuff predicting the directions of the Stock Markets. As I personally have ample years of experience in the Stock Markets (and thus know for sure what’s going on),  I did get asked—by my three friends and my one wife—about my take on 2017. So after … [Read more...]

Have you decided yet?

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This post is for you.  Yes, you, who sent me that e-mail yesterday asking me whether it would be a good timing to start investing in the stock market right now. I understood from your mail that you have not started to invest anything in the stock market.  All savings are in FD and you are – figuratively spoken – sitting on the fence waiting to deploy your savings into the “risky stock market” … [Read more...]

Being A Co-Owner of GLP

It is often said that buying shares in a company means becoming a co-owner of the company. However, what does it really mean to be a co-owner? After my large investment in Global Logistic Properties (GLP), I finally understood what it means. Usually, for any investment, if the company is not doing well, I could simply sell and walk away. But when I initiated the 15% to 20% concentration in GLP, I … [Read more...]

InvestingNote: Get Tips On Stocks From Experts

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With the launch of fintech festival last November, Singapore has signalled its intention to be a serious fintech hub in the world. Heartland Boy is hugely supportive of this initiative because he has personally benefitted from some local fintech startups; namely Shopback and Carousell. In this post, he is pleased to share with his readers about the merits of InvestingNote. What is … [Read more...]

My Roller Coaster Ride with GLP

There is a Chinese saying for relationships: "You come together because of misunderstanding, and you separate because of understanding". When it comes to stock investments, I find that this saying applies as well, at least for me. When I am thinking of buying a stock, the stock would tend to look attractive, even though I would study its financial statements carefully before buying. As the saying … [Read more...]