Starhub

2009Oct-StarHub-640×603

Starhub has fallen 10% in 2 days. On friday, a dragonfly candle stick pattern was formed. It is a sign of reversal. Williams was in oversold territory until friday, where it started to bounce up. RSI showing some support at 26.1%. Expect a bounce back to cover the gap of 2.14-2.16 next week. Support at 1.93 region.

The big drop last 2 sessions was due to the news of them losing EPL rights. But is the impact really so bad that it led to such selldown? Got some figs somewhere. Let’s take a look at it. Figures from Q209 results:

• Mobile : 1,849,000 subscribers
• Pay TV : 530,000 subscribers
• Cable Broadband : 389,000 subscribers

Some figures from FY08 AR

• Segment Results : Operating Profit = $409,257,000 (Telecoms : $441,947,000 ; Cable TV and Broadband = -$2,977,000)
• Net Profit = $311,319,000 (EPS 18.28ct)

‘In 2007, StarHub’s major source of revenues was mobile services, which accounted for 52% of revenues, with cable TV, broadband, fixed network services, and equipment sales accounting for 17%, 12%, 14%, and 5%
respectively.’

And how many will cancel their cable TV just because of EPL and how much lesser will they earn without the EPL channel? Furthermore, they will be saving over 250mil over 3 yrs from losing the EPL rights.
So will the $250Mil (over 3 years) of savings from losing the EPL rights be able to offset the loss of EPL hubbers’ business?

Also, they have been maintain a 0.45cents dividend per quarter from 2008. Its about 9% dividend yield a year. Pretty neat as compared to many other stocks yield.