Since I have written about M1 Ltd (aka M1) in my last post, I felt I should be responsible to write something about its latest full year 2017 earnings report.
Firstly, I am delighted. This was because dividend (for the 2nd half of the year) increased, even when the 4th quarter net profit was slightly lower than the year before.
In addition, everyone was expecting a lousy quarter because IT IS M1 - the telecom that is bound to fail! If the results were lousy, everyone will just be like "I told you so...";
but now everyone is more like "hmmm... is this good or not good?", just like all the analyst in this article.
But What Is My Opinion of M1's Future?
Despite being vested in M1, I am VERY SURE its revenue will be impacted by the entry of TPG and MyRepublic this year.
Thus, M1's current diversification into IoT is to minimize the impact of the loss of market share within its Telecom business. This should not be seem as a new revenue channel that will propel M1 back to its olden days.
However, this new revenue stream should still be able to boost M1's revenue slightly for at least 2018, since M1 has the first mover advantage in this IoT segment (until Singtel takes over).
Like That...Then How?
For all the existing M1 shareholders, M1's ex-dividend date will only be on 18 April. That is a long wait. During this period, "noises" will appear to confuse you and weak-holders will eventually sell.
But it is also important to note that the next first quarter report for financial year 2018 will also be released around 17 April. This clashes with the ex-dividend date. In the event if that quarter's earnings is very bad, the share price will be drastically punished, due to the combination of the ex-dividend date.
Nevertheless, I believe the stagnant share price since late August 2017 indicate that the share price has reached a bottom, and I will just buy A BIT MORE if the price falls below $1.830 (before 15 April).
Anyway, if you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information!
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