Starhub: Is it time to buy?

I've been watching Starhub for sometime now.

The latest result was lukewarm but dividend yield is not bad for a matured stock at 5.5%.

http://www.starhub.com/about-us/newsroom/2017/february/starhub-reports-2016-fourth-quarter-and-full-year-results.html

The company is forecasting dividend of S$0.16 for FY17.

Gearing is at 27% and price is trading at the low end of 5-year range.

Australia's TPG is coming in as the 4th telco in Singapore and may apply some price pressure on the earnings but it won't be easy to get a large number of subscribers to switch.

http://www.todayonline.com/singapore/australian-telco-tpg-singapores-4th-telco

If TPG fails to take off immediately, Starhub's price may rebound to S$3.40 level.

With a potential trading profit of 15-17% plus 5.5% dividend, I think this is a good punt.

At this entry point, I doubt the downside is more than 5%.