Maybank IB says DiGi price weakness a buying opportunity

From Star Online: Business
28th March 2013

PETALING JAYA: Further weakness in DiGi.Com Bhd's share price closer to the completion of the Time dotCom Bhd (TdC) distribution could be a buying opportunity, said Maybank IB Research.

“We had expected some degree of profit-taking since DiGi was the best performing telecommunication stock last year with a 36% gain. “However, a number of company-specific events have exacerbated the correction, resulting in DiGi being the worst performing telco stock year-to-date with a 13% drop.

“While valuations are not yet compelling, net dividend yields are again looking decent at around 5%.

‘Cut-throat’ competition among telcos likely to hurt margins, say analysts

By Star Online: Business
7 July 2012

INTENSE competition within the local telecommunication industry is driving the service providers to adopt strategies to increase their share of the market.

Analysts say the industry is exciting as all the mobile service incumbents are gearing up for a possibly “cut-throat” competition.

While competition is healthy for the industry, the ongoing price war among the telcos may hurt profit margins, they say.