So companies are betting big on buying spectrum licenses. And the incumbent telcos will have to face new competition to take away their customer by among other things cutting prices.
Good for the consumers, not so good for the telcos.
I wrote about Starhub here (Starhub's price has dropped further to S$2.83)
Starhub: Is it time to buy?
Telstra in Australia is also a telco and facing new competition.
It's stock has been hammered real badly.
From the 52-week hight of A$5.83, it got trashed down to A$4.00.
That's incredible and I certainly think the market has over-reacted.
It still remain to be seen how Telstra will fight the competition but for sure the fat lady is not singing yet.
Telstra & TPG, Who Will Win Share?
But at this point the market has at least temporarily declared that Telstra is the loser.
And I disagree.
So my investment theme for mid-long term punt for 2017 are
1) Gold ETF (because US market has over-enthused about Trump's economic policies)
2) Distressed Telco Stocks
Huat ah!!!
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