Buy @ $2.06. They just lost their EPL broadcast rights fm 2010 to SingTel, now massive sell-down going on. Tried to buy at $2.04 but POEMS system was buggy.
I think StarHub over-bidded last time and must have made a loss – see Starhub AR2008 (pg 130), there’s a loss for ‘Cable TV and Broadband’ segment. I’m assuming ‘Broadband’ segment would have been profitable and therefore, the losses due to ‘Cable TV’ segment must have been quite large. Further, under ‘Cable TV’, ‘Sports Channel’ is only part of it. They ought to be many subscribers who only watches movies, cartoons, serials,… That means, their EPL bid last time must have been too aggressive.
My conclusion (a biased one as I’m vested) is that losing the EPL rights will be good in terms of short term profitability (fm 2010). There’s also the possibility that Starhub will license the EPL content fm SingTel. 😀
Note that prices may drop even further if market is very negative on Starhub’s longer term prospect due to the loss of this rights.
10:30am
Got some more @ $2.03. Looks like heading towards sub-$2!