M1 stock price sank more than 7% today

M1 stock price sank more than 7% today

M1 share price sank as it posted a 20.8% quarter-on-quarter decline in Q2 net profit.

Adding on to the results, SPH, Keppel T&T, and Malaysian telco Axiata Group Berhad have also announced that they will not further their strategic review to dispose of their respective stakes in M1.

m1

According to the Edge Singapore:

Meanwhile, M1’s EBITDA in 2Q fell 10.7% to $73.4 million, from $82.2 million a year ago.

Operating revenue grew 4.7% to $251.6 million, from $240.4 million a year ago. Compared to 1Q17, operating revenue was 3.5% lower q-o-q.

This increase in 2Q was mainly due to a 28.8% increase in handset sales to $46.9 million, compared to $36.4 million a year ago.

Meanwhile, its total service revenue held steady, edging up by 0.4% to $204.7 million.

This was largely due to a 21.9% increase in revenue from fixed services to $31.1 million, offset by a 2.1% decline in mobile telecommunications services revenue to $159.5 million and a 8.6% drop in international call services revenue to $14.0 million.

In terms of price action, M1 is definitely facing some downward pressure for retail investors. The stock plunged more than 7% today, breaking below $2.00.

screen-shot-2017-07-19-at-6-25-45-pm(Hint: click on the chart to see more)

However, when stock price plummets too much in a day, some investors are already looking for the bargain. M1 is currently trading at $1.935 cum-dividend.

The ongoing discussion about retail investors’ opinions on M1’s target price is found here.

At the same time, CIMB Securities’s latest research report initiates a target price of $1.70, which is found here.

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