Friday, March 18, 2011

Starhub's Unsustainable Dividend Payout

An article in the State Times(more civilised description) today on the poor internet connection experienced by local World of Warcraft players. All along my gut tells me something is not quite right with Starhub. A few days back i experienced internet outage for a few hours.

Its dividend of 20¢ is more than Earnings Per Share of 15.3¢ which is unsustainable - it's paying out more than it earns.

Naturally something has to go/deteriorate since the market here is saturated already. On a sidenote i consider property related stocks (reits, malls) dangerous as well. Increasing no. of citizens are in debt up to their eyeballs & unable to meet minimum sum in their retirement accounts.

Property market will crash badly one day & bring down with it related stocks as well.

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