Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Wednesday, December 5, 2012

RHB Research: DiGi fair value at RM5.40

KUALA LUMPUR: RHB Research Institute is maintaining its fair value for DiGi.Com at RM5.40 as valuations are still not cheap at this juncture.

It said on Tuesday DiGi has largely sustained its revenue growth momentum while margins do not appear overly affected despite tougher competition.

"Management noted handset subsidies have become more aggressive in the last six months. While a risk to DiGi's EBITDA margins, we believe the risk should be controlled as management prefers to take a more rational and selective approach when subsidising handsets," it said.

RHB Research said despite lost revenue opportunities in 3Q due to prolonged post-swap optimisation, management maintained 2012 guidance of mid-to-high single digit revenue growth and stable EBITDA margins.

"There was some churn in postpaid due to the hiccup, and management will focus more on retention activities apart from acquiring new subscribers," it said.


My TP for mum and bb.....

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts Plugin for WordPress, Blogger...