Starhub: Correction Over?

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Starhub had a fierce correction of about 15% for the past 3 weeks. Is the correction over? It is very much depends on whether Starhub can rebound from the 200D SMA support at about $4.00. At current valuation, Starhub is only good for technical trading instead of long term investing.

See my reasons for not investing Starhub here.

2013June1-StarHub-800x600

Key Statistics for STH

Current P/E Ratio (ttm) 19.0228
Estimated P/E(12/2013) 19.0952
Relative P/E vs. FSSTI 1.4046
Earnings Per Share (SGD) (ttm) 0.2108
Est. EPS (SGD) (12/2013) 0.2100
Est. PEG Ratio 4.2557
Market Cap (M SGD) 6,894.21
Shares Outstanding (M) 1,719.26
30 Day Average Volume 2,790,100
Price/Book (mrq) 50.1236
Price/Sale (ttm) 2.8571
Dividend Indicated Gross Yield 4.99%
Cash Dividend (SGD) 0.0500
Last Dividend 05/15/2013
5 Year Dividend Growth 3.30%
Next Earnings Announcement 08/07/2013
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Starhub: Boring Stock!

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Someone ask me whether Starhub is good for long term investing…… My answer: “Depends on your objective and your risk appetite”.

For me, Starhub is a boring stock base on a few reasons:

Fundamentally

  •  I will not invest in a stock which is NOT undervalue. Starhub is overvalue base on PE ratio & PEG valuation method.
  • 4.4% Dividend is not attractive to me because there are other stocks with better Dividend like REIT. There is no guarantee that Starhub must pay dividend to the investor as a company, unlike REIT which governed by law that they have to pay out 90% of the net income.
  • One of my investing rule is “Buy Low Sell High”. Current Starhub stock price is DEFINITELY NOT at Low. No point for me to take the risk because downside risk is much higher than upside potential.

 

Key Statistics for STH

Current P/E Ratio (ttm) 21.6436
Estimated P/E(12/2013) 21.3679
Relative P/E vs. FSSTI 1.6182
Earnings Per Share (SGD) (ttm) 0.2093
Est. EPS (SGD) (12/2013) 0.2120
Est. PEG Ratio 5.6529
Market Cap (M SGD) 7,787.37
Shares Outstanding (M) 1,719.07
30 Day Average Volume 1,692,133
Price/Book (mrq) 178.9531
Price/Sale (ttm) 3.2117
Dividend Indicated Gross Yield 4.42%
Cash Dividend (SGD) 0.0500
Last Dividend 04/17/2013
5 Year Dividend Growth 5.05%
Next Earnings Announcement 05/03/2013

Technically

  • I am a trader. I HATE to see those stock chart in one straight line. There is no clear pattern, support and resistance to plan my trade.
  • Starhub is trading in a Parabolic curve without a healthy correction along the way.
  • I am unable to plan my profit target, stop loss and holding time frame.

2013April19-StarHub-800x600

Is Starhub a boring stock? I am also interested to know from you… Feel free to leave your view here.

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Starhub is Getting Risky approaching Historical High Price

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Starhub has been on the uptrend for a few months and currently approaching historical high resistance at about $3.21. Although the dividend yield of 6.37% (base on stock price of $3.14) looks attractive, the risk of trend reversal is relatively high to worth the gamble. The current Starhub stock price is also violating my rule of “Buy Low Sell High” and “Never Buy near Resistance”. The safer entry point is at about $2.92 and need to see whether this previous resistance can become a support level.

Continue ReadingStarhub is Getting Risky approaching Historical High Price