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Wednesday, August 5, 2015

M1 target price $2.7

With news that IDA will offer a 60% discount, a forth telco entry sparked a big drop in M1 price. This 60% discount is restricted to new bidders only.

Source: http://www.todayonline.com/singapore/ida-offer-spectrum-lower-price-facilitate-entry-fourth-telco

The IDA said that it does not see the market as being able to support more than four players.

Even with news that a forth telco may be coming into the market, M1 had ramped up its efforts to capture market share by offering the cheapest mobile plans. This plans may lure in more subscribers in attempt to discourage a forth telco entrant. However, there are still no news of who will be the forth telco yet.

Source: http://www.straitstimes.com/tech/m1-rolls-out-cheapest-mobile-plans-aimed-at-consumers-who-do-not-need-handset-upgrade

What price to enter M1 given its attractive dividend yield of 6% at current closing price of 3.05?

5 year historical chart
Source: KE Trade

Trend lines intersect at $2.7
Target entry price: $2.7

3 comments:

  1. The historical charts of near about five years are showing only ups in the share price and looks will be going more up in the coming future.

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