Starhub’s last couple candlesticks dont seem to be a flag continuation anymore. Anyway, a short at 20MA is nice. Across all stocks actually. Especially if other indications point to a shorting opportunity. In any case even if the trend reverses, cut loss point is quite near.

I am likely to put in some to tikam, and then add in more on confirmation. When the time is right..

I dont know bout starhub’s business and i dont really care. My time is spent screening charts, not fundamentals.

Compare starhub’s chart with singtel and M1.U can see the drastic diff. The speculation is, stathub’s turn to die is coming?

If the price moves above 20MA, it might be a bullish signal or it might just be a whipsaw. Looking at the candlesticks, unlikely that it will move above 20MA. If it does break above 20MA, the next resistance level is about $2.30. Good luck, mon ami. Oh, I collect payment in nasi lemak.

Back to familiar ground, starhub has debt to equity ratio of over 900%!!! Debt is 968m vs equity of 107m . 124m due in next 1 year, balance 844m in instalment by 2012 (that’s about 21m a month from oct 09 till end 2012).

Cash is 137m, enough to pay off 124m loans due in next one year. Cash flow is 664m which is good but have not check profitability. There is 220m of goodwill, i never really like goodwill especially in times like this. Trade receivables (customer owe to SH) is 113m which trade payables and accruals (SH owes to suppliers) is 351m ! So SH owes to suppliers 351m while customers own SH 113m meaning SH needs to pay out more than they earn broadly speaking. May affect cashflow and profitability.

SH has been more defensive than other index stocks so far and its absolute price at $2 still quite high. When hedge funds and fund managers need cash to meet redemption calls, do they sell penny stock or those that have high absolute price? Remember, good fundamentals is irrelevant in a sell down while poor fundamentals will hasten its fall.