Starhub bottomed out?

30 May 2018, Starhub in a StraitsTimes article mentioned that they will be dropping out 11 TV channels from 30 Jun 2018 onwards.

Starhub's stock drop 4.5%.

Failed negotiation
Starhub's portfolio of educational channels will no longer be available to viewers due to a failed negotiation between Starhub and Discovery because it is not willing to pay a fair value for the programmes.

Types of disruption
Technology and piracy could be a part to play. Internet TV like Netflix and Youtube have disrupted the television business because of the availability of programs. Speed of internet also makes it faster to view the video clips and movies online. Piracy still exist because it markets itself as a cheap alternative to viewing starhub channels. A $45-$60 dollar a month subscription from Starhub could only cost you $8 per month with a pirated TV box, which is able to access most of Starhub's channel.

With multiple disruptions to its TV business, Starhub can no longer command a premium price for its TV subscriptions. Therefore, it is understandable why Starhub is not be willing to pay a premium to keep its educational portfolio.

Moving forward
Starhub can replace these channels with cheaper alternatives or to decide to slowly wind down their TV business and invest in new businesses to be able to sustain shareholders returns.

Source: Maybank Kim Eng - ketrade platform

10 year historical price chart

Starhub trading at close to crisis levels

Source: https://www.businesstimes.com.sg/companies-markets/discoverys-portfolio-of-11-tv-channels-to-be-dropped-from-starhub-after-june-30

Positive indicators on Maybank

I am extremely positive on Maybank, the largest bank in Malaysia. Although Malaysia is the worst performing markets last year, it seemed that Bursa could be on the oversold side which could project attractive buying for investors as US markets becomes expensive.

These are 3 reason why i am bullish on Maybank.

Firstly, Maybank's insurance arm Etiqa reported lesser profits due to insurance payouts for MH17 and MH370. The current market price for Maybank have priced in that factor.

Secondly, although it reported lesser profits, Singapore operations grew by 5% and its Philliphines operation grew healthily at 31%. Natural disasters had struck Malaysia with floods and Philliphines with typhoons that destroyed homes and companies. The demand for loans will be huge as these people seek to find shelter, food/daily essentials and services.

Thirdly, Maybank is at a discount to foreign investors due to the weaker ringgit and bearish Bursa.