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Thursday, January 21, 2016

M1, how low can it get?

Singapore telco M1 share price is plunging downwards. At $2.28, it is at 5 years low with dividend yield of 6.5%. Shareholders who buy M1 before 12 Apr 16 will be entitled to the payout of $0.083 per share.

5 Largest shareholding of M1
  • Axiata 28.31%
  • Keppel Corp 19.09%
  • SPH 13.28%
  • Colonial First State Asset Management (Australia) Limited 2.95%
  • Macquarie Investment Management Limited 0.75%
Although there are talks of a 4th telco coming in, M1 had been in the telco business for a long time, and these telco assets were built up and maintained over the years.

M1 latest FY2015 showed a 1.5% growth, and despite that share price had been dropping continuously. 

M1 CEO Karen Kooi mentioned that with Netflix entering the Singapore market would provide a level playing field in the tv business. 
Although Singtel signed a strategic partnership with Netflix, it is still likely that M1 could be in talks with them to do some tie-up as well.


M1 does not own tv assets at the moment as compared to starhub and Singtel and if they are able to do tie up with Netflix, costs incurred would likely be lower than singtel and starhub.

2 comments:

  1. Hi! Does it mean that M1 is one of those blue chips that is considerable when buying stocks?I l plan to do the OCBC Blue Chip Investment Plan and thinking of investing in 3 BC but i dont know which one.Can you help me suggest?Thank you, Dang

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    Replies
    1. Hi Dang,

      You can consider doing STI ETF when doing monthly investment plans. STI ETF contains a bundle of stocks which tracks the singapore economy. It provides diversification for retail investors.

      LT
      Remiser, Maybank Kim Eng

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