05-08-2014, 11:30 PM
(05-08-2014, 09:09 PM)CityFarmer Wrote:Noted and thanks for your help to move it to the right location.(05-08-2014, 09:00 PM)Stecano Wrote: Hi,
Could someone help me understand why is Starhub's price relatively high given that it's still accumulating deficits?
Given that the dividend is relatively high but then it's still in deficit as I believe the earnings are channelled to pay dividends.
Given such a scenario, what would be some of the reasons why people want to invest in companies that have a record of deficit?
Are they taking a 'big' risk as it's getting more and more difficult to keep up with the high dividends as the accumulated deficits continue to pile higher.
Thanks for your thoughts.
I merged the new thread under Starhub thread. You may want to post company related posts under the appropriate company thread in the future.
Regards
Moderator