Singtel share price and StarHub share price unleash new terror on investors?

One quarterly financial result does not define the long-term prospect of a company. But following the release of the latest financial results, can Singtel share price and StarHub share price really fight gravity? It appears to me that that both telco players are heading into two completely different unchartered territories.

It was only a few years ago that the local telco stocks were deemed as defensive stocks because of their stable stock prices and high dividend pay outs. But the market dynamics changed swiftly with the introduction of a fourth telco player, TPG, in 2016.

Subsequently, StarHub share price plunged from $4.00 to the current abysmal level of $1.45. As the dominant player, Singtel share price remained resilient so far but had lost plenty of the bullish momentum seen in its hey-days.

Singtel share price

Is this the end of the road for Singtel share price and StarHub share price? In this article, let’s examine the outlook for these two counters.

Singtel share price stung by Airtel

Singtel share price is expected to come under pressure after the management delivered a set of trashy 1QFY2020 results that saw net profit plummeted by 35% to $541 million. On 2 July 2019, I warned that Singtel share price would be entering a dark chapter. The latest results validated my thesis that the previous bullish form of Singtel share price was not built on business fundamentals as 1QFY2020 results marked seven consecutive quarter of declining profits. With such results, it is difficult to be bullish with the short-term outlook for Singtel share price.

Understandably, investors must be worried that Singtel share price will free-fall when the stock market opens next week. But in my point of view, the correction in Singtel share price should [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: August 11, 2019 — 3:29 pm

2 Comments

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  1. Hi Gerald, Thanks for the posting. As you said, one of the criteria for investing in Singtel is to be a long-term investor. But how long could be considered sufficiently long? Meanwhile, you didn’t indicate your entry price for Singtel. I have no interest in Singtel for the time being, but am quite curious about your comfortable level for this stock.

  2. Hi Leo,

    My entry level for Singtel is $2.60. The previous low was $2.80. Given the state of play, I think Singtel could reach such level soon.
    As to what is considered a long-term investor for Singtel, it is quite subjective. But I would say 5 – 10 years is considered a long-term time frame.

    Regards,
    Gerald
    https://sgwealthbuilder.com

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