Thursday, 3 November 2016

Small buy position for M1

Despite M1 having a bad Third Quarter results, 穷小子 bought M1 with a small position. Yes, 穷小子 did mentioned that he will not touch unless M1 hits $2 or after fourth telco announcements. But.. But.. It is too irresistible for not having a small bite to average down the overall price. Based on few points below.
  • Based on today closing price, it gives a return yield of 7.42%. Assuming if the profits drops by 20%, and provided if the payout policy doesn't change, the yield will be somewhere around 5.9% . Still acceptable.
  • Temasek Holdings had deemed 550K of shares at $2.101 few days ago. Temasek's deemed interests arises to 21.04% from 20.98%, via aggregation of the deemed interests held by KCL and DBSH. This boost the company's confident too.
  • The volume hits 12,064,500 immediately the next trading day after the news announced. Something may be brewing.
  • Pinned hope on fourth telco does not realised.
Two are facts , Two are non-facts (Pray)


  1. I made a small investment in M1 recently too. Frankly, if I am an investor, I will NOT put up $250m to invest in a 4th telco in singapore. the risk/reward doesn't make sense.

    1. Hi diyinvestor88,
      Same thoughts with you, but anything can happened.
      Let's pray

  2. MyRepublic seems determined to go ahead and has the financial backing...

    Out of M1, Starhub and Singtel, i would rather get Singtel.. although the dividend yields at these entry prices make M1 and Starhub very enticing..

    1. Not sure about MyRepublic's finance. Wise choice on getting Singtel, as its business is not so rely on local telco industry as compared to Starhub or M1.
      Market speculations about having 4th telco is very bad for both Starhub and M1 now. :(