thanks for explaining.

Take the latest figures on starhub. you can reference them on my google spreadsheet here [link here >>]

The current share price is around $2.28

The enterprise value, which is (Market Cap + Long Term Debt-Cash) is $2.32. Thats close to current share price since its equity : longterm debt:short term debt ratio is 1:6:6

The FY2009 Free Cashflow is $0.26. This free cashflow is what is earn in 2009 minus away any capital expenditure.

From this you will be able to see that Starhub to pay out $0.20 in dividend, they still have $0.06 cents left over.

If we take Enterprise Value per share dividend by Free Cashflow you get a figure of 8.9 times. What this means is that all else being equal, the cashflow generation after capex should allow you as an investor to recurperate your 100% investment in 9 years time. Its average compare to other dividend yielders.

I normally hate to do Discounted Cashflow analysis, because growth rate and discounted rates are so hard to predict.

 Growth rate: We take that this lousy stock grows at 2% per year

Discounted Rate:Inflation or required rate of return being 2% per year

Basically with these figures it is essentially stagnating.

Using a Free Cashflow of $0.26 we get a present value for the next 10 years of cashflow as $2.80.

[DCF of starhub here >>]

 i dunno whether it is negative asset or not, but to me, equity is also borrowing money, debt is also borrowing money. which is cheaper? at a ratio of 1:6:6, if equity you need to pay investors 9%, long term bonds you pay bond holders 4% and short term borrowing you need to pay bank 1.25% which will you choose?

I help u shout la. no need so discreet and indirect.

SELL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

SELL TO $1.80!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!