(chart source: chartnexus)Company Profile: StarHub Limited is a Singapore-based provider of mobile, Pay TV, broadband and fixed line services.
Major Shareholder:
1. Temasek Holdings (49.1%)
2. NTT Investment (10.0%)
Dividend accumulated for the year : SGD0.18 ONE-TIER TAX
AmFraser Research in an Oct 21 research report says: "Recent price fall reflects much negative impact from the loss of key sports content in the Barclays Premier League (BPL) and ESPN Star Sports. We have cut our EPS forecasts by 5% in FY2010 and FY2011, based on a worst case scenario of StarHub losing all sports pack revenues and a 10% cable TV subscriber migration.
"Strpping off $80 million in expenses on a full year basis from 2H 2010 revises our EBITDA forecast margin for FY2011 from 31.3% previously to 31.7%. We have lowered our fair value to $1.94 - based on a DCF approach - revising our terminal growth assumption from - 5% to -6% on the back of reduced opportunities and increased competition in the Pay TV market. StarHub is currently trading close to our fair value. HOLD"
(source:http://www.theedgesingapore.com/component/content/8937.html?task=view)
Strategy: Hold at this level while support is mainly at SGD1.85. Anything below SGD1.90 is worth buying.
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