OCBC and DBS downgrade Starhub (SGX: CC3) to "sell" and "hold". Should I sell or buy?

Hi,

Do avoid starhub at the moment as they are facing disruption in the industry. The industry headwind for them is strong. There is high probability that they will continue to cut their dividend.

The reason behind the drop in stock price can be attributed to the new dividend policy (cut from current 16% per ordinary share, resulting in 44% cut in dividends from 16cents to 9cents). My thoughts are that once the stock price will creep back up once investors have accepted the new policy. If you currently have stocks, I would hold it, and wait for the next rebound before selling. This will help to minimise losses. Last Aug 2018, prices were $1.6 and it rebounded to $1.9 by Oct 2018. Another point to address is whether Starhub's new dividend policy is sustainable. Decreasing their quarterly cash dividend gives Starhub extra cash flow left over to be reinvested back into the firm. However, I don't think a 9c dividend is sustainable thus I would not buy.