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Goodbye StarHub

Last week, I have sold off StarHub from my stock portfolio with a profit gain of 50.9% including dividends collected over the years. I guess Telecommunication stocks are not as resilient as everyone think it is. MobileOne has fallen and so has StarHub.

Below are the reasons why I sold off StarHub:-

Decreasing Dividends

Over the last 5 years, this was the first time StarHub has reduced its dividend from 5 cents to 4 cents that was paid out in May. Moving forward, I believe StarHub will continue to reduce its dividends.

Cable TV No Longer the Trend

With the increasing popularity of online video streaming websites such as Netflix, it is threatening the pay TV service business.

Are you still a Hubber?

Gone are the days where if you subscribe to StarHub’s cable TV, mobile line and internet broadband, you get perks or discounts off your bill. It is hard to fulfill the criteria nowadays with more choices out there. You may opt for Netflix instead of cable TV or internet broadband from myRepublic instead of Starhub internet fibre. I guess offering more discounts and perks is not sustainable for StarHub’s business.

Recycling Capital and Wait for Opportunity

I observed StarHub’s share price is on a downtrend, I want to sell it while still making slight profit. The capital plus profits from the sell transaction can be invested in another stock.

 

Summary of May 2017 Transactions

After monitoring Tai Sin Electric for almost a month, I decide to make a buy transaction. I did not add it to my stock portfolio but instead I added it to my spouse’s stock portfolio. She has now 5 stocks in her stock portfolio!

If you read my post on Looking at Tai Sin Electric Limited Market Depth, there is good support at S$0.425. Buying and selling is very similar to supply and demand. There is quite a high volume asking for S$0.46 and a lot of bid volume at S$0.42 and S$0.425.

Based on My Personal Analysis of Tai Sin Electric Limited, this will give a dividend yield return of more than 5% for my spouse.

The risk here is the slowing down of construction and infrastructure projects in Singapore. Outweighing the growth potential versus the investment risks, that is how I came to the decision to add this stock to my spouse’s stock portfolio. The management has proven to be able to ride through difficult times and I shall monitor if they are able to ride through the current storm and continue to growth Tai Sin Electric Limited and return more value to its shareholders.

Summary of February 2017 Transactions

In the month of February 2017, I made two sell transactions. I have divested Far East Hospitality Trust and NeraTel. You can read more on Far East Hospitality Trust at Far East Hospitality Trust Undervalued or Value Trap?  and NeraTel at NeraTel – An Abandoned Child.

There are a few stocks in my watch list such as Acromec, ISOTeam, Hock Lian Seng, Tai Sin Electric and many more but I shall not be investing in them now with the cash gotten from the sale of Far East Hospitality Trust and NeraTel. The reason is I need more time to do more research and analysis. After a year on, I am still sticking to investing for dividends. If the stock is a growth stock, it will be a plus. (more…)

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