Purchased M1 Shares

Hi Everyone,

Finally, I have a telco shares in my portfolio which makes my defensive shares formation complete. So to summarize, my defensive stocks are listed as below:

1) ST Engineering - 1000 units
2) M1 - 900 units
3) OCBC - 300 units
4) SCI (Depends) - 500 units

The reason why SCI had the label (Depends) is because some people might not view this shares as a defensive stocks but for me because of its utilities business, thus I personally label it as defensive stocks. (Personal view)

Okay, so the reason why I purchase M1 shares is because it had dropped during the XD stage. I have been eyeing on Singtel or M1 or Starhub for a long time and I decided to go with M1 mainly on the business and the company portfolio as well as my girlfriend and I are the customers of M1.

With the recent news on SMRT collaborating with OMG in becoming the 4th telco, it certainly affects the investor point of view. However, I believe it will take sometime in order for the 4th telco to become a threat to the 3 main telco. The reason why I said so is because they are the new entrant to the market and the 3 main telco already had strong customer based. Of course, customers can choose to jump ship whenever they want however, most of the customers are either tied down with contract or loyal customer to the telco that they have sign with.

In addition, customers might want SMRT to focus on their core business instead of being a 4th telco and the reason for SMRT and OMG to become the 4th telco might be a strategy to drive away the potential threat coming from myrepublic. (Just my personal view)

However, if SMRT and OMG telco really come up with a great subscription plan (concession + data plan), it might really be a threat if they can prove that their services wont be like their own train services (up time of the mobile services).

After due consideration and the recent price drop, I have decided to go with M1 to join my portfolio in the telco business. 

What are your views?