Many friends are concerned about the upcoming 4th telco operator My Republic.
While Starhub is good for dividends, Singtel has a bigger market cap. Larger market cap translates to a stronger and more resilient company, able to withstand tougher operating environment. With a new player in the market, it translates to smaller market share for the existing 3 players.
To make matter worse, the existing 3 telcos have been slow in adapting and offering competitive subscription plans to their clients. In my views, this is how My Reb is able to gain entrance into the market, creating a niche for themselves. Furthermore Mr Rodrigues was a former Vice President of StarHub International & Wholesale.
My suggestion is to take some Singtel shares after you exit from Starhub. Dividends may be lower, but in exchange there will be capital gain. Capital gain is referred to the gains from the price increment of the stock price.
My 2 cents.
I have been busy these few weeks as I was attending some corporate events. Please also note that I will be away from 30th March till 9th April for my NS Reservist.
KEY HIGHLIGHTS
Update
ST Engineering (STE SP/BUY/S$3.21/Target: S$3.60)
Rise of the Terrex.
At A Glance
Corporate
Singapore Exchange: China Merchants Group joins race to buy Baltic Exchange.
Swiber Holdings: Front runner for India turnkey job.
Sector
Property: Reprieve for property developers unlikely.
Economics
Economy: February NODX up 2.1% yoy but "purely arithmetic".
Economy: SME sentiment at neutral after 6 years of optimism.
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