- Have not traded cash equities for a few years now. Happened to chance upon this old chart montage of some Sing stocks I used to follow. Spot the odd man out.
- Starhub (bottom right corner) sticks out like a sore thumb. Must be one of the rare stocks in the market having an up quarter.
- Done a very cursory investigation - dividend yield of 7% probably explains the strong performance. Kim Eng Securities says "sustainable dividend policy supported by free cash flow generation" with E 4Q11 FCF @ 8.2 cents vs E quarterly dividends of 5 cents per share. In this low interest rate environment, I guess Starhub makes a good alternative to near zero yielding bank deposits. Almost like a high yield fixed income perpetual bond.
- Maybe not over-paying for EPL screening rights has also helped.
- So question is .. if stocks sell off large and I want to put some cash to work, do I buy something that is off sharply, or buy Starhub with its relatively superior chart technicals?
2 comments:
From Dow Jones newswires
1153 GMT [Dow Jones] Buy cable and gold, sell USD/CAD says Lloyds Bank Corporate Markets as a cross-asset trade strategy. It argues that risk appetite should pick up once more and recommends buying GBP/USD and selling USD/CAD via option risk reversals for the three-month period. In addition it recommends buying gold.(david.willmer@dowjones.com)
I think is from Goldman Sachs analyst..Effect of Ops twist is still a weak USD.
Hahaha .. the exact opposite of what I have on.
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