So.. SH was trading at $3.70 on Monday, finally breaking through the $4.00 which it had strongly held on for the past year. Monday (29 June) was the day when major stocks experienced a terrible diarrhea.
I was contemplating so hard whether to buy as it seemed to go free fall and with so much uncertainty over the Greek bailout.
Anyway, fast forward three days later, major stocks have slightly rebounded.
At $3.94, I can't exactly say that SH is trading at a good value as it has too much debt. However, I notice that it has better resistance than M1 when the latter fares better in its financials instead.
Missed the boat. No idea when I can take such a good chance again. Arrrgh.
Hi,
ReplyDeleteYou may have missed the starhub boat but M1 is still available as you said. M1 also has a higher dividend yield and last traded at $3.23, it still appears as a good buy. It is able to have a higher dividend yield than Starhub while having a lower payout ratio, so it may be an even better purchase than Starhub at $3.70 for the long-term.
From,
Just Some Thoughts
Hi,
ReplyDeleteThanks for your comment. However, SH price support level since 2014 was at $4.00. At $3.70, it has broken the price support level and it is a rarity to drop by 7.5% of this support level.
However, M1 at $3.23, this price support level was already broken through in June, before the greekexit crisis. At this price level, there is no 'rarity' in its pricing. In fact, on Monday, 29 June, M1 reached its lowest at $3.16, a drop of only 1.85% of its support level.
Therefore, what I meant was that SH's massive drop in pricing was a rarity and a better find as compared to M1.
I will follow up with another post to explain in detail about this. ;)