On 21 June 2018, StarHub share price plunged to a 13 year low. Trading at $1.64, this popular stock is a shadow of its former self. Even during the dark days of the Great Financial Crisis in 2009, StarHub share price had never dipped to such abysmal level.
Certainly, nobody could have predicted Starhub share price would suffer from such a devastating run. When it comes to technology disruptions, it is always a wild card. In the good old days, StarHub can bank on SMS, IDD and Pay TV for growth. But the advent of technology has significantly eroded margins from these former cash cows for telco players.
StarHub’s recent payment row with American entertainment giant, Discovery Channel, also casts a dark shadow over Pay TV business outlook amid stiff competition from video streaming players like NetFlix.
For those who bought StarHub shares at $4.20 in 2015, they would be staring at massive paper losses, even if you factored in the dividends issued during that period. Incoming new CEO, Peter Kaliaropoulos certainly have his work cut out for him when he takes over in July 2018.
But before writing this stock off, it should be highlighted that the current StarHub …