For the whole of Year 2014, it has been hovering at $4.10+, reaching a low of about $4.00+ and then a max of about $4.20+.
Puzzling me especially when the latest financial statements haven't been exactly promising (net operating income fall, although gross profit increased).
With the 4th Telco coming up soon, I expect market share of the Telcos to be more diluted. There will be more competition with better mobile and data plans. That probably means a relatively slow growth (granted that population increase means a bigger consumer base).
The Price/Earning is 20 times. Crazy or what?
Sometimes I think people aren't really sure what to invest so they put their money into the highly raved SH and just go on shut off mode. That is fine too, especially if you do not want to constantly monitor the market and you are ok with returns of 4.5%.
For me, I can use the money to generate more returns with better growths. So SH at the moment is a No for me.
Hi Heidi
ReplyDeleteNot only is the PE high, but SH is also one of those with extremely high leverage as compared to the other telcos. I'm still baffled until today as well, i guess the telco and blue chip factor counts quite a bit here.
Hi B,
DeleteYes, SH's D/E ratio is 4.61 times! as compared to SingTel's 0.37 and M1's 0.77 times. Really overhyped.