******** Accumulate on Dips: Starhub. Share price 4.31. ( Resistance at 4.40 strongly) REPOST - HAVE BROKEN up above the 4.40 resistance level NOW 4.45

REPOST – HAVE BROKEN up above the 4.40 resistance level, more upside can be possible as mentioned below

 

 

Posted 14 Oct 2013 (Monday) - Starhub has been trading consistently above the 20 DAY MA ( Green Line) for about a month and has rebounded upwards every time it nears this support. Current support at 4.30 which also coincides with this short term support line. Likely to consolidate from 4.30 to 4.40 within the next few days with resistance strongly at 4.40. This was the high set in Aug also which is attempted but failed to break. Can consider accumulating this defensive counter on market weakness and wait for the break of 4.40. For longer term investment, can buy more on dips below 4.15 level. A break above 4.40 can see it potentially go to 4.60 then 4.80 where profits can be taken first.

 

Maybank KE – 21^ST August 2013

StarHub: Green Is The New Gold; Upgrade to Buy TP $5.13
Ø  Upgrade to BUY. We think margin guidance is too conservative and StarHub can do better, especially if iPhone 5S disappoints. Also, now that BPL cross-carriage is sorted out, we think Pay TV subscribers losses will reverse as early as 3Q13. Ø  We also like the new CEO’s enterprise-oriented strategy to drive future growth and margins. Mr Tan wants fixed network services to be the second largest contributor (now 15%) after mobile (50% of revenue), given that enterprise margins are higher than consumer.Ø  The stock is now a BUY with a Street-high TP of SGD5.13. Our DCF-based TP has been raised following 3-7% upward revisions to FY13-15 forecasts and a higher terminal growth rate.