StarHub share price in dangerous mood

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On 27 July 2020, StarHub announced the abrupt retirement of its CEO Peter Kaliaropoulos. The bombshell revelation is likely to add more pressure on StarHub share price in the coming weeks. The CEO’s sudden departure also coincides with the period of time in which the telco is about to announce the 1HFY2020 results (7 August 2020). In view of this, many investors can’t help but fear the worst for StarHub share price.

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Peter Kaliaropoulos was appointed as StarHub CEO in July 2008. During his tenure, StarHub share price had never crossed the $2.00 mark. Instead, the past two years saw StarHub share price on a path of destruction. Currently, StarHub share price has slumped to an abysmal $1.25, a shadow of its former self when it was trading as high as $4.00 in 2016. In view of this, should shareholders short StarHub share price to hedge their investments?

StarHub share price

To be fair to Peter Kaliaropoulos, he did try his best to revive the fortunes of the ailing telco through digital transformation, cost-cutting measures and identifying growth opportunities. In fact, I am inclined to think that Peter had been brought in to cull the headcounts of StarHub. Shortly after his appointment, StarHub announced retrenchment of 300 staff. Consequently, StarHub share price surged to $2.00 on 5 October 2018.

But the “feel good” sentiments for StarHub share price quickly evaporated as reality started to sink in. The business fundamentals had not changed. Full-year revenue and profits for FY2018 and FY2019 continued to decline. The turning point for StarHub share price must be the exit from the prestigious Straits Times Index (STI) in September 2018. That was a knock-out blow and StarHub share price never see daylight since then.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in StarHub before. Whether StarHub share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

StarHub share price remains a falling star

In my opinion, it is definitely not the fault of Peter Kaliaropoulos that StarHub share price had become one of the biggest falling stars of SGX. The issue is not about mismanagement as the structural decline for StarHub had begun way before the start of the CEO’s tenure.

Then again, having Peter on board as CEO did not improve the situation either. If shareholders have to fork out the remuneration for a foreign expatriate’s remuneration, then he must prove that he is worth the value. The matter of fact is that under Peter’s tenure, StarHub share price had been sluggish. Perhaps a better player can conjure something special? Existing shareholders need [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: August 1, 2020 — 8:06 am

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