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Wednesday, 17 October 2012

Digi.com leads telcos on earnings quality

Digi.com Bhd has emerged as the best performer on earnings quality among five companies in Malaysia’s telecom services sector, tracked by at least three analysts, data from Thomson Reuters StarMine shows.

Digi.com, Malaysia’s thrid-largest mobile phone operator, has the highest possible Earnings Quality (EQ) score of 100.

The operating and net margins for the second quarter ended June 2012 were ahead of industry averages by 8 percentage points.

Of the 29 analysts tracking the stock, six give it a ’strong buy’ or ’buy’ rating, 17 recommend a ’hold’ and six rate it a ’sell’ or ’strong sell’.

The company also has a score of 87 in the SmartHoldings Model, suggesting potential increase in institutional ownership.

The stock is up over 40 per cent so far this year, while the broader index gained 8.02 per cent in the same period, as of Tuesday’s close. The had stock hit a 52-week high at RM5.52 on October 9.

At the other end of the spectrum, Time Dotcom lags the sector with an EQ score of 5. - Reuters

Read more: Digi.com leads telcos on earnings qualityhttp://www.btimes.com.my/Current_News/BTIMES/articles/20121017151650/Article/#ixzz29YiqviSc

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