There is something about M1’s growth that drives analysts crazy. Not one of the analyst have a bad thing to say about it.
Comparatively, Starhub and Singtel seems to have a lot of flaws against it.
M1 just released their Q2 report. There is nothing big to comment about except that they bought additional spectrum rights and as a result what was bad free cash flow became even worse for the quarter.
A 6.6 cents dividend payout should ease your soul.
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Jared Seah
Monday 18th of July 2011
Hello Drizzt,
I think I like what Dividend warrior has done. Just buy all 3 telcos!
This year its M1. Next year Starhub could be the darling. And the year after it could be Singtel's turn.
Cheers!
Drizzt
Thursday 21st of July 2011
i really don't get why M1 performs best Jared. i think it doesn't reflect the fundamentals
gregg
Saturday 16th of July 2011
Arshan and Drizzt
Thanks for your explanation.
Arshan
Friday 15th of July 2011
Hello Gregg,
All communication devices need a particular band of electromagnetic spectrum to transmit their data. M1 bought some 'space' in this spectrum, presumably for their 4G network deployment. In time to come, Starhub and Singtel will also have to pay for this 'space' to deploy their own 4G networks [and not lose out to M1!]
On a sidenote, this 4G network 'space' is quite relevant as Apple is considering making 4G iPhones ... and telcos have to have the infrastructure ready for these money-spinners right?
Hope it answers your query.
gregg
Thursday 14th of July 2011
Hi Drizzt,
What is spectrum right? Does starhub need to pay this? i try to find it in the starhub annual report but couldn't get it....
Drizzt
Friday 15th of July 2011
hi gregg, spectrum is the band of frequency that the telco buys from the government to operate their mobile on. you buy more frequency to provide more bandwidth to your customer. government auctions off this spectrum so they are like fixed cost. starhub and singtel also got purchase.
essentially it is also their economic moat. to operated telco u need this. and they are not always given out.