Starhub

StarHub after hitting a high of $2.29 on 27th May 2009, had retraced and stablised around $2.10 before slowly edging upwards to current level of $2.20. The price chart indicates that Starhub could possibly be bottoming out, thus traders can consider buying at current level.

Cut loss can be set at $2.

Possible target level can be set at $2.50 (50% retracement level) and $2.70 (61.8% retracement level)

Fundamental wise, it is trading at a P/E of around 12 and dividend yield based on the most recent year is 8%. On the whole, it is trading at reasonable valuations and is also a defensive play. However, you might have to exercise some patience which means you must be prepare to hold for this trading idea. Their cashflow is strong but their debt level is pretty high. They are currently using their cashflow to finance their debt which they have been coping quite well over the past couple of years.