SKT Sky Network Television Limited.

[alokdhir]

Property is due to go unconditional tomorrow (per notes to financial statements).

So it means we can count 55 Million as cash now in accounts or not yet ??

[freebee]

"Sky TV regains its Mojo with return to growth"

https://www.stuff.co.nz/business/127871921/sky-television-returns-to-growth-will-resume-paying-dividends

[Arbroath]

So it means we can count 55 Million as cash now in accounts or not yet ??


At FY22 as of now they have around $130m of cash (the $74m actual cash at 31/12 plus the property settlement cash coming in March) but by June the cash mountain should be more like $150m+.

FCF won't be as strong in H2 because capex is weighted into H2 but hopefully another $20-25m.

Although some might be disappointed at the lack of dividend today this is getting more exciting to me as its becoming more certain that the business is improving and they have no debt and heaps of cash.

Ex-cash they are trading for around 6.5x FY22 forecast assuming they make the top-end of guidance....still way too cheap and should be easily 10-12x and to me is worth $4.00 a share or thereabouts.

[JohnnyTheHorse]

Will be interesting to see how the price reacts. My guess would be an initial retreat as traders and the impatient sell out after not getting huge news, then institutional money will be accumulating after the weekend. Confirmed dividend policy will make this attractive to a wider range of funds. $2.75 break next week I reckon.

[LoungeLizzard]

Will be interesting to see how the price reacts. My guess would be an initial retreat as traders and the impatient sell out after not getting huge news, then institutional money will be accumulating after the weekend. Confirmed dividend policy will make this attractive to a wider range of funds. $2.75 break next week I reckon.

Yep, bit of a retreat as you suggest - down 9c. All up it's not a bad result - confirms SKY as a viable business for institutions to get back into. With so few shares on offer I don't think $3 is out of the question when they finally do announce a dividend.

[LaserEyeKiwi]

Down to $2.50c now - still above yesterdays opening I suppose.

[The diver]

Why is sky always so secret squirrel about everything. Can't provide some certainty around capital management?

[JohnnyTheHorse]

Sophie noted that we would be updated on strategic opportunities in June, or prior to that noting their continuous disclosure requirements.

In my opinion there is 100% a merger or major acquisition that they are currently working through.

[alokdhir]

Slowly slowly SP coming back ...wont be very surprised it closes positive .

Also noted single buyer of 10,000 lot coming very often to mop up supplies

Accumulation happening ...buying support is there ...not falling of the cliff after disappointing announcements of no immediate special dividend or buyback . They want to use capital for growth not thinking of returning to shareholders or spending on propping up SP . EPS growth will boost SP .

NEEDS MORE PATIENCE for excellent rewards ahead ...maybe FY 23 will be major gains time ...20 cents organic dividends also on cards plus corporate activity with organic growth

[JohnnyTheHorse]

As expected a predictable retail flush at open. Sophie noted they are speaking with institutional investors over the coming days, so the price at the end of next week will be a far better indication than this mornings action.

I still can't quite fit all the pieces together to work out what they're looking at behind the scenes, but we can be certain something big is brewing if they are retaining so much cash.

Sophie once again also emphasised on the call that they are focused on delivering shareholder value.

Edit: lack of commentary in here suggests many are disapointed or sold out this morning. They clearly haven't held Sky long enough and know patience is required. If you have confidence in the serious undervaluation of the company, just forget about the day to day movements as the market will eventually value it for what's it's worth.

[Not The Chosen One]

[QUOTE=JohnnyTheHorse;944015

Edit: lack of commentary in here suggests many are disapointed or sold out this morning.[/QUOTE]

Or currently banned

[Monarch]

That is indeed the case

[Watchful]

I’m feeling relaxed about it. Lack of div was initially a little disappointing, but a clearish policy in place and stated intention for final div is positive.

Their wording in this release tends to heavily hint towards Sky making an acquisition with their lump of cash, rather than sharing it back out to us, but they would hardly be telling us if they were expecting any potential takeover talks to conclude soon, either.

The hints are probably just to muddy the waters a bit and make it seem like they have more options on the table.

[sb9]

All of my holdings are in tact. You'd be silly to let them go now if you held them for more than 6 months, as the story is starting to unfold and coffers are getting fuller and fuller..

[percy]

The CEO's use of the word significant in an announcement and what it means.
SELL ............If not used at all.
Hold..............Used once or twice.
Buy...............Used three times.
Strong Buy.....Used four times.
Sophie used it five times.......lol.

[sb9]

The CEO's use of the word significant in an announcement and what it means.
SELL ............If not used at all.
Hold..............Used once or twice.
Buy...............Used three times.
Strong Buy.....Used four times.
Sophie used it five times.......lol.

And she used that famous word "Inflection Point" again once or twice today.

[Almost-confused]

As expected a predictable retail flush at open. Sophie noted they are speaking with institutional investors over the coming days, so the price at the end of next week will be a far better indication than this mornings action.

I still can't quite fit all the pieces together to work out what they're looking at behind the scenes, but we can be certain something big is brewing if they are retaining so much cash.

Sophie once again also emphasised on the call that they are focused on delivering shareholder value.

Edit: lack of commentary in here suggests many are disapointed or sold out this morning. They clearly haven't held Sky long enough and know patience is required. If you have confidence in the serious undervaluation of the company, just forget about the day to day movements as the market will eventually value it for what's it's worth.

I for one is very happy with the outcome of today's announcement. If you want a quick sugar hit of capital return, that doesn't help us in the long term. The management's job is to build a sustainable business, with returns in the long run. From everything they've said and indicating, that's exactly what's happening.

I'm excited to see what is brewing behind the scenes. I would agree that it must be something significant with the cash they're looking to retain.

[freebee]

As expected a predictable retail flush at open. Sophie noted they are speaking with institutional investors over the coming days, so the price at the end of next week will be a far better indication than this mornings action.

I still can't quite fit all the pieces together to work out what they're looking at behind the scenes, but we can be certain something big is brewing if they are retaining so much cash.

Sophie once again also emphasised on the call that they are focused on delivering shareholder value.

Edit: lack of commentary in here suggests many are disapointed or sold out this morning. They clearly haven't held Sky long enough and know patience is required. If you have confidence in the serious undervaluation of the company, just forget about the day to day movements as the market will eventually value it for what's it's worth.


No selling here, had half a buy order at 2.50 left over from yesterday that i forgot about, was filled this morn to add to the pot - already up 3% on that parcel lol. Seems like something is brewing behind the scenes and i think they maybe just needed a bit more time before announcing. Once the property deal is fully done i.e. moneys in the bank, we might get an update

[Sideshow Bob]

Sophie on the NZX investor virtual event on 8th of March:

Don't have a link to the event, but link to register: https://nzx.us19.list-manage.com/track/click?u=27bf52ec60d794bae202792e4&id=e40c14213c&e=baeeaaa251

[JohnnyTheHorse]

Watch for price sensitive announcement regarding property going unconditional either later today or first thing Monday.

[Mel]

Watch for price sensitive announcement regarding property going unconditional either later today or first thing Monday.
Unfortunately countered by the Russia/Ukraine situation

[JohnnyTheHorse]

Unfortunately countered by the Russia/Ukraine situation

SPY up 1.5%, QQQ up 3.4%... what situation?

edit: I say the statement with a pure market/traders lens on. Not to take away from the devastating situation.

[Mel]

SPY up 1.5%, QQQ up 3.4%... what situation?

edit: I say the statement with a pure market/traders lens on. Not to take away from the devastating situation.
Yes, devastating for those directly impacted. I'm picking a downward trend once the other markets open

[RTM]

Watch for price sensitive announcement regarding property going unconditional either later today or first thing Monday.

Already priced in ?

[mikelee]

Good to have dividends finally confirmed for Sept, but excluding "one off" Sophie said, which means proceeds from the property sales will not be returned to the shareholders?! Most shares were hit yesterday by the Ukraine news, so I'm not too worried atm. Opportunities for bargain hunters maybe.

[LaserEyeKiwi]

Already priced in ?

Yes. The only way it would be price sensitive is if there was an announcement the deal had fallen over.

[LaserEyeKiwi]

This needs to be said: It is ABSOLUTELY DISGUSTING that sky is still broadcasting the “RT” news channel, which is purely Russian propaganda. They should be deeply ashamed that they are taking money from Putin to carry this channel, and shareholders should be speaking up loudly.

[bottomfeeder]

This n Weds to be said: It is ABSOLUTELY DISGUSTING that sky is still broadcasting the “RT” news channel, which is purely Russian propaganda. They should be deeply ashamed that they are taking money from Putin to carry this channel, and shareholders should be speaking up loudly.

Get rid of the Russian Channel, and at the same time Chinese and Pakistan channels.

[alokdhir]

Announcement of unconditional part has just come ...not price sensitive ...as transactional

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/387992/365584.pdf

[ba9]

This n Weds to be said: It is ABSOLUTELY DISGUSTING that sky is still broadcasting the “RT” news channel, which is purely Russian propaganda. They should be deeply ashamed that they are taking money from Putin to carry this channel, and shareholders should be speaking up loudly.

Agree with you. But, i believe sky will still need to wait for orders from govt :)

[ba9]

Announcement of unconditional part has just come ...not price sensitive ...as transactional

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/387992/365584.pdf


Great news :)

Was a bit worried, after all the commentary around real estate.

[LaserEyeKiwi]

Agree with you. But, i believe sky will still need to wait for orders from govt :)

Why is that? They can drop it anytime they want I would think.

[LaserEyeKiwi]

Disgusting on SkyTVs part - grow some fricken balls and a spine.

https://i.stuff.co.nz/business/127889942/sky-tv-wont-say-if-its-paid-to-carry-russia-today-news-channel

[sb9]

Building up FCF reserves nicely, but for this silly stupid war thing we would've been inching close to $3 mark..

[ba9]

Disgusting on SkyTVs part - grow some fricken balls and a spine.

https://i.stuff.co.nz/business/127889942/sky-tv-wont-say-if-its-paid-to-carry-russia-today-news-channel

SKY seems to be talking the slack.

The orders need to come from the govt, if RT is to be taken down.

[LEMON]

This needs to be said: It is ABSOLUTELY DISGUSTING that sky is still broadcasting the “RT” news channel, which is purely Russian propaganda. They should be deeply ashamed that they are taking money from Putin to carry this channel, and shareholders should be speaking up loudly.

All news is propaganda, read between the lines.

British news is reporting Kyiv is under attack right now with bombardment. People in Kyiv are reporting no bombardments, life is continuing as normal at this moment.

Makes you wonder what news streams ever telling the truth, take bits from them all and research more to find the truth or nearest at least

I'm just passing on what people living in Kyiv that I know are reporting back

[LaserEyeKiwi]

All news is propaganda, read between the lines.

British news is reporting Kyiv is under attack right now with bombardment. People in Kyiv are reporting no bombardments, life is continuing as normal at this moment.

Makes you wonder what news streams ever telling the truth, take bits from them all and research more to find the truth or nearest at least

I'm just passing on what people living in Kyiv that I know are reporting back

News channels often have their target audiences
they pander too, but there is a huge difference between presenting facts with a certain bias, and completely ignoring/fabricating facts by a “news” channel that is controlled by the state/defacto dictator for his own propaganda purposes.

[LEMON]

News channels often have their target audiences
they pander too, but there is a huge difference between presenting facts with a certain bias, and completely ignoring/fabricating facts by a “news” channel that is controlled by the state/defacto dictator for his own propaganda purposes.

Very true we are lucky we have multiple options for our news and resources in saying that I do personally find it's important to have those sources available aswell, it's a glimpse into the other side I suppose and can help weigh out the sentiment from those living in those regions

Anyway not a discussion for SKT forum

[LaserEyeKiwi]

Sanity prevails, as Sky stops broadcasting RT:

https://i.stuff.co.nz/business/127900707/sky-tv-stops-broadcasting-russia-today

[fulliautomateix]

Sanity prevails, as Sky stops broadcasting RT:

I have to agree with Lemon, if you understand what it is and where it is coming from it will help you to be aware of what the people over there have to base their opinions on.
Multiple information streams is one way to reduce the bias, get Elon to provide free starlink to Russia and the Ukraine!

[LaserEyeKiwi]

I have to agree with Lemon, if you understand what it is and where it is coming from it will help you to be aware of what the people over there have to base their opinions on.
Multiple information streams is one way to reduce the bias, get Elon to provide free starlink to Russia and the Ukraine!

Following your logic then Sky should allow a neo-nazi channel, and a pro-pedophile channel, and an anti-Muslim channel, all under the theory that people can do their own research and “understand what it is and where it is coming from”. Some viewpoints should not be platformed. Full stop.

[Joshuatree]

Sanity prevails, as Sky stops broadcasting RT:

https://i.stuff.co.nz/business/127900707/sky-tv-stops-broadcasting-russia-today

Good stuff. The butcher is now a full blown megalomaniac threatening nuclear now(2nd time).Extreme dishonesty tactics(telling Ukrainians their leader has capitulated etc etc) and increasingly weaker by the day and worryingly more desperate not to lose!

[DeathByWarriors]

Following your logic then Sky should allow a neo-nazi channel, and a pro-pedophile channel, and an anti-Muslim channel, all under the theory that people can do their own research and “understand what it is and where it is coming from”. Some viewpoints should not be platformed. Full stop.

They used to have one, it was called Fox News.

[LEMON]

Following your logic then Sky should allow a neo-nazi channel, and a pro-pedophile channel, and an anti-Muslim channel, all under the theory that people can do their own research and “understand what it is and where it is coming from”. Some viewpoints should not be platformed. Full stop.

Pretty sure the BBC had Jimmy Saville which the main executives were under investigation for knowing about his actions with children and over the past few years the news across the west has been anti-Muslim sentiment, hence the wars in Iraq and Afghanistan.

RT news spins the news in favour of the Russian government, just like our government media in the west will always work in favour of it's own agenda

You'll be happy to hear YouTube also banned RT news, Edit- banned ads on RT news to RT itself

[biker]

They used to have one, it was called Fox News.

You have nailed it 😝

[cyclist]

Will be interesting to see how the price reacts. My guess would be an initial retreat as traders and the impatient sell out after not getting huge news, then institutional money will be accumulating after the weekend. Confirmed dividend policy will make this attractive to a wider range of funds. $2.75 break next week I reckon.

Meanwhile, away from the political discussions, JTH's thesis seems to be panning out so far.

[fulliautomateix]

Following your logic then Sky should allow a neo-nazi channel, and a pro-pedophile channel, and an anti-Muslim channel, all under the theory that people can do their own research and “understand what it is and where it is coming from”. Some viewpoints should not be platformed. Full stop.

A couple of things;
1) I do believe people should be allowed to express their opinions, open dialog could change opinions that are demonstrably immoral or inhumane, If you allow that not all people are morons.
I concede that most people are resistant to changing their minds, but can't we be optimistic that humanity is becoming more sophisticated.
2) Untruth and propaganda aren't illegal (lucky for politicians), but paedophilia is so not really comparable to hate speech.
3) DOYR is an underlying mantra of this forum, so my assumption is people reading my post are people who keep themselves informed.
4) Telling other people what they should be allowed to watch sounds suspicious to me.

Let Putin give us money it's not going to change my opinion, he's a rabid dog who thinks it's pre 1986.

[airedale]

Lets move the politics to the Off Market Discussions page.

[Sideshow Bob]

I see NZ Golf have announced Sky have (renewed) rights to the PGA tour for the next 6 years.....article is dated January but no announcement at the time.

Sky New Zealand secures a multi-year deal with Discover Sports and the PGA Tour (golf.co.nz) (https://www.golf.co.nz/news-detail?newsarticleid=25205&tags=Industry)

[sb9]

Nice accumulation going on higher highs...Instos happy to keep fronting up with their money at these levels before eventual next big thing, whatever form that transpires in.

[Moneyman]

With c. $140m in the bank any thoughts on what Sky are looking at? NZME maybe?

[thebusinessman]

Perhaps someone can explain the depth weirdness that happens here - trading at 2.69 and along comes a SELL order for ~2000 at 2.61... I know some people have commented on bots before, but how exactly is this helpful? Is the idea that the 2.61 fills at the end of the day and that becomes the final share price?

In the same vein, $2.71 for ~40,000 shares has just appeared... This wouldn't be bot behaviour?

Who wants to do the DEPTH101 here?

[bottomfeeder]

Nice accumulation going on higher highs...Instos happy to keep fronting up with their money at these levels before eventual next big thing, whatever form that transpires in.

I think accumulation is in progress, but it's not the same "I'll take my fill and watch the SP go up" it's someone that is showing a bit more cunning and patience. The SP will go up slowly and may even come back from lack of buyers for a bit and then start again. We've got a serious buyer. Woohoo $3 here we come.

[JohnnyTheHorse]

Will be interesting to see how the price reacts. My guess would be an initial retreat as traders and the impatient sell out after not getting huge news, then institutional money will be accumulating after the weekend. Confirmed dividend policy will make this attractive to a wider range of funds. $2.75 break next week I reckon.

Playing out exactly as I was watching for. Give institutional money a few days to complete going through the report and confirming position sizes they are after.

The key thing I've been watching here is volume compared to the day of the announcement. The two days afterwards was around similar volume, then today was over >50% more. I always pay attention when volume is larger days after announcement, as it typically shows institutional money accumulating. The accumulation today was far more aggressive with good volume on the ask getting snapped up.

I maintain my stance of a $2.75 break this week, as long as the US market doesn't go too crazy.

https://www.tradingview.com/x/YvmPATqj/

[Balance]

Easy money buying off the impatient last week.

Already way overweight but when good things are on sale, one must buy more.

What did Buffett said about the stock market being a transfer of wealth from the impatient to the patient?

[cyclist]

Perhaps someone can explain the depth weirdness that happens here - trading at 2.69 and along comes a SELL order for ~2000 at 2.61... I know some people have commented on bots before, but how exactly is this helpful? Is the idea that the 2.61 fills at the end of the day and that becomes the final share price?

In the same vein, $2.71 for ~40,000 shares has just appeared... This wouldn't be bot behaviour?

Who wants to do the DEPTH101 here?

I think you are likely watching the pre-close match-off. This is essentially the same as what happens before the 10:00 open, and is explained here: https://www.nzx.com/investing/nzx-trading-hours/anatomy-of-a-trading-day

The person selling for $2.61 wants to be pretty sure they will sell during the closing match, hence bidding a low value compared to recent trades which puts them in the queue ahead of many of the other sell orders. For a liquid stock like SKT, they'll be confident of the final match price being pretty similar to the trades prior to 4:45 (and in today's case, they ended up getting $2.70 for their sold shares). Ditto someone who has bid well above recent trade prices during the last 15 minutes of trading. Mr $2.71 would have ended up buying those shares for $2.70.

[thebusinessman]

I think you are likely watching the pre-close match-off. This is essentially the same as what happens before the 10:00 open, and is explained here: https://www.nzx.com/investing/nzx-trading-hours/anatomy-of-a-trading-day

The person selling for $2.61 wants to be pretty sure they will sell during the closing match, hence bidding a low value compared to recent trades which puts them in the queue ahead of many of the other sell orders. For a liquid stock like SKT, they'll be confident of the final match price being pretty similar to the trades prior to 4:45 (and in today's case, they ended up getting $2.70 for their sold shares). Ditto someone who has bid well above recent trade prices during the last 15 minutes of trading. Mr $2.71 would have ended up buying those shares for $2.70.

Many thanks for this, I did find that link after I posted yesterday but your additional explanation is very valuable!

[sb9]

Buying depth loaded and ready for another accumulation day on the cards, may be with slight price rise too.

Edit: Big lot at 2.71 of 65k volume gobbled up in no time.

[thebusinessman]

Anyone got any thoughts on personal price targets to sell? I'm overweight in Sky so looking to sell about 50% as prices rise. Maybe holding half my shares by $3 would be good, not hugely confident a big post-$3 breakout will happen. Interested in others' thoughts.

[sb9]

Anyone got any thoughts on personal price targets to sell? I'm overweight in Sky so looking to sell about 50% as prices rise. Maybe holding half my shares by $3 would be good, not hugely confident a big post-$3 breakout will happen. Interested in others' thoughts.

It all depends what pans out over next few months. Instos buying at current levels will be looking at another 30-50% from here or even more depending on strategic play, whatever that might be. Attractiveness of SKT now is how quickly that FCF is growing and how undervalued price relative to that.

[thebusinessman]

It all depends what pans out over next few months. Instos buying at current levels will be looking at another 30-50% from here or even more depending on strategic play, whatever that might be. Attractiveness of SKT now is how quickly that FCF is growing and how undervalued price relative to that.

Yes it's brave of me to make such a claim where forevermore we can all look at my words and laugh as the share price rockets! haha.

[sb9]

Yes it's brave of me to make such a claim where forevermore we can all look at my words and laugh as the share price rockets! haha.

Not sure where our friendly poster mistaTea has gone, he's far more knowledgeable on SKT operations and finer details.

[Arbroath]

Not sure where our friendly poster mistaTea has gone, he's far more knowledgeable on SKT operations and finer details.

Believe he got banned but not sure what for...I reckon Sky is worth $4.00+ so I hope the instos keep buying and that they're right on potential upside/valuation.

[DeathByWarriors]

Definitely looks like some insto buying going on with a few of these big trades over the last couple of days. Looks like JTH was spot on with his prediction of price increases through the week.

[sb9]

$2.75, first target reached. Next in line $3 and beyond...

[The diver]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/388267/365950.pdf

acc doing some selling.

[Arbroath]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/388267/365950.pdf

acc doing some selling.

That is good news as their track record is not great and they will have helped cap the strength so far in the $2.65-2.75 region. No doubt the move towards $3.00 will happen very soon especially if the US markets can just have a couple of good days...

[sb9]

That is good news as their track record is not great and they will have helped cap the strength so far in the $2.65-2.75 region. No doubt the move towards $3.00 will happen very soon especially if the US markets can just have a couple of good days...

Agree, they've been reducing their holdings in few other companies as well. Think their mandate this year could be to take profits.
If they continue to feed the market they've got another 14.5mln shares left and that might keep sp under check for a while yet.

[JohnnyTheHorse]

I have been hoping ACC was the outfit that has been providing the bulk of the sell volume. They will just be reweighting after the large price rise late last year. Once they've finished there should be a lack of sell volume.

[winner69]

An insight into Sky

Blue Sky Thinking
Sky TV New Zealand’s Head of Corporate Core discusses how data integrity has helped the company respond to the changing needs of its customers and successfully move into new, innovative services.



https://www.ft.com/partnercontent/precisely/blue-sky-thinking.html?twclid=11498889687775461378&utm_source=TW&utm_medium=technology&utm_content=paid

[snigmac]

An insight into Sky

Blue Sky Thinking
Sky TV New Zealand’s Head of Corporate Core discusses how data integrity has helped the company respond to the changing needs of its customers and successfully move into new, innovative services.



https://www.ft.com/partnercontent/precisely/blue-sky-thinking.html?twclid=11498889687775461378&utm_source=TW&utm_medium=technology&utm_content=paid

I didn't see the Sky TV data collection angle. If only OGB was here, he would spin this angle so hard..

[sb9]

Rounded up a close of 2.60 on ASX. We may see it inch closer to 3 mark here soon..

[JohnnyTheHorse]

A strong US market overnight should have all the ducks in a row to get that resistance break today.

[Balance]

A strong US market overnight should have all the ducks in a row to get that resistance break today.

The most bullish broker (a firm renowned for M&A activity) has a valuation on SKT of above $4.00.

Highest PT is $4.71 according to :

https://www.marketscreener.com/quote/stock/SKY-NETWORK-TELEVISION-LI-6497839/consensus/

4 brokers have BUY recommendation, one has HOLD and one (presumably the one with a $1.70 PT) has SELL.

SKT is a NZ50 index stock - institutions cannot risk being underweight the stock now that it is going up and up.

[JohnnyTheHorse]

Looking positive for the resistance break, but as with the last few days depth very thin until institutional buying comes in starting around lunch time.

[sb9]

Looks like Instos looking at each other so far, waiting to see who'll make first move...

[RTM]

Pleased the cricket today is screened on Prime…..my stream from SKY is very hit and miss.

[mikelee]

Good to see the SP holding steady, despite the recent bloodbath on the NZX. :cool:
Might try to pick up some bargains once some funds free up.

[JohnnyTheHorse]

Good to see the SP holding steady, despite the recent bloodbath on the NZX. :cool:
Might try to pick up some bargains once some funds free up.

One easy trading strategy everyone should learn. Look for stocks that have strong bullish correlations to the market (i.e. go up more and down less than the general market).

Safest place for your money on the NZX right now in my opinion.

[Balance]

All positive - M & A activity has to be in the offing.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/388597/366379.pdf

[Moneyman]

Can’t seem to open that link, can you elaborate?

[Balance]

Can’t seem to open that link, can you elaborate?

Ok, posting the link again :

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/388597/366379.pdf

[JohnnyTheHorse]

Any ideas what they could be looking at? They talk about accelerating growth and creating new revenue streams.

Mobile is the obvious choice for a merger, however if that were to happen then Sky would be the one being acquired. Fits both the above requirements.

I can't see them making a large investment in 'future tech' as I simply couldn't see the market supporting it.

NZME? Maybe, but cross selling synergies are poor (which in my view is the most important aspect).

Sports betting? Maybe, but not a good look in todays world.

Stalling tactic whilst 2degrees/Orcon merger completes?

[Moneyman]

When does the 2degrees/orcon merger complete?

[Balance]

Any ideas what they could be looking at? They talk about accelerating growth and creating new revenue streams.

Mobile is the obvious choice for a merger, however if that were to happen then Sky would be the one being acquired. Fits both the above requirements.

I can't see them making a large investment in 'future tech' as I simply couldn't see the market supporting it.

NZME? Maybe, but cross selling synergies are poor (which in my view is the most important aspect).

Sports betting? Maybe, but not a good look in todays world.

Stalling tactic whilst 2degrees/Orcon merger completes?

Look at who’s behind the Orcon/2 Degrees merger.

It’s not a question of if but when imo.

Suspect institutions are waking up to the same conclusion which is why they have been accumulating during the current selldown.

Had a cheeky order to buy at a lower level but sp did not reach there. Too much buying interest around, especially when ASX opens.

[JohnnyTheHorse]

Well Comcom decision is due 15th March and property settlement due next week. If it's going to happen then all roadblocks should be clear by the end of next week.

[Sideshow Bob]

Ok, posting the link again :

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/388597/366379.pdf

This is the YouTube link to the presentation with Sophie. Starts at about 21 minutes for about 20 minutes.

https://youtu.be/OXrmUJW-s3k

[cyclist]

Well Comcom decision is due 15th March and property settlement due next week. If it's going to happen then all roadblocks should be clear by the end of next week.

Hi JTH. Please remind me what the comcom is sticking their nose into this time? (I've missed something).

[JohnnyTheHorse]

Hi JTH. Please remind me what the comcom is sticking their nose into this time? (I've missed something).

Orcon / 2degrees merger.

[Not The Chosen One]

Anyone thinking about signing up to Sky Sport Now can get a small discount as below

Promo Code WARRIORS2022 will give 10% discount on the Sky Sport Now Month Pass for 8 months. After 8 months the price will revert to $39.99 per month. The promo code may be used until 11.59pm, 31 March 2022. Terms and Conditions apply.

[Sideshow Bob]

Anyone thinking about signing up to Sky Sport Now can get a small discount as below

Promo Code WARRIORS2022 will give 10% discount on the Sky Sport Now Month Pass for 8 months. After 8 months the price will revert to $39.99 per month. The promo code may be used until 11.59pm, 31 March 2022. Terms and Conditions apply.

Probably the only return that one will get out of the Warriors in 2022.....:mellow:

[DeathByWarriors]

Probably the only return that one will get out of the Warriors in 2022.....:mellow:

Wrong. This is our year.

[Moneyman]

Market up and sky down 🤷*♂️

[Sideshow Bob]

Wrong. This is our year.

For the 27th year in a row!! :huh:

[RTM]

For the 27th year in a row!! :huh:

Keep the faith guys..keep the faith.
Enjoying the Ladies cricket on SKY at the moment.
Good tournament.

[JohnnyTheHorse]

Comcom has cleared the Orcon/2degrees merger.

[The diver]

Source? cant find it in news or comcom website

[JohnnyTheHorse]

Source? cant find it in news or comcom website

https://comcom.govt.nz/case-register/case-register-entries/voyage-digital-nz-limited,-orcon-holdings-limited-and-two-degrees-group-limited/media-releases/commission-grants-clearance-for-vocus2degrees-merger

[Moneyman]

So how long before they set there sights on Sky….

[The diver]

Thanks for that. I guess the question now is will this mean anything for sky in the near future.

[bottomfeeder]

Thanks for that. I guess the question now is will this mean anything for sky in the near future.

Always potential for Sky takeover. Worth 5 cents on the SP. But something more interesting is the switch off coming for Vodafone TV. It's a wonder a takeover for Sky hasn't started already.

[mistaTea]

But something more interesting is the switch off coming for Vodafone TV.

Got an email from them yesterday...if I can be bothered registering my Vodafone TV box again (I deregistered it when I stopped using it ages ago) then I think I qualify for $75 refund.

Could be a couple of decent bottles of red wine, so maybe I will make time to do that tomorrow.

[ados_nz]

Got an email from them yesterday...if I can be bothered registering my Vodafone TV box again (I deregistered it when I stopped using it ages ago) then I think I qualify for $75 refund.

Could be a couple of decent bottles of red wine, so maybe I will make time to do that tomorrow.

Back from the naughty corner!

What GIF was it this time?

[mistaTea]

https://www.vocus.co.nz/vocus-and-sky-case-study

Vocus releasesd a Case Study on Sky Broadband a couple of days ago.

A match made in Heaven...

[biker]

Nice to see the property cash in the bank today and the share price respond accordingly.

[biker]

SKT
18/03/2022 15:23
TRANSACT
NOT PRICE SENSITIVE
REL: 1523 HRS Sky Network Television Limited

TRANSACT: SKT: Completion of Mt Wellington property sale

Sky Network Television (NZX/ASX: SKT) advises the sale of the Company's Mt
Wellington campus to Goodman Property Trust for $56m has completed.

Authorised by James Bishop, Company Secretary

[Habits]

This coming week looks to be a good one for skt and probably the market as a whole. Some of the unknowns are settling down and now not so unknown. The long patient sky-divers can look forward to (the promise of) cash rewards from this sale. 3 bucks by Friday?

[mistaTea]

This coming week looks to be a good one for skt and probably the market as a whole. Some of the unknowns are settling down and now not so unknown. The long patient sky-divers can look forward to (the promise of) cash rewards from this sale. 3 bucks by Friday?

If the market was rational, Sky would have been valued at ~$3 per share minimum a long time ago.

Lookit, a year ago PE made an indicative offer of $400M to take Sky private (market cap was ~$300M at the time. Interestingly enough our EV is not much higher than that at the moment).

That was an opportunistic low ball offer that didn’t get any traction as it turned out. But, in my mind, it set the floor for what sky is worth (she is obviously worth a lot more than $400M otherwise PE wouldn’t have made that offer…).

If all you did was add the cash balance to the PE offer you get $530M (should actually be $540M as at today given we have generated more FCF since the HY report)…which would be a valuation of $3/share.

[bottomfeeder]

Nice to see the property cash in the bank today and the share price respond accordingly.

Strange isn't it. After the last announcement, it looked pretty certain that this was going to settle. So anyone selling at $2.61/$2.62 must have been overly worried. $3.00 is where I would like to be.

[Habits]

Sky chart is looking good and ready for BREAKOUT. The sky train is ready to move. My personal opinion.

[mistaTea]

Sky chart is looking good and ready for BREAKOUT. The sky train is ready to move. My personal opinion.

Need to buy my toddler another $1K of sky shares tomorrow.

Hopefully any breakaway is not right from the opening bell…

[Habits]

Need to buy my toddler another $1K of sky shares tomorrow.

Hopefully any breakaway is not right from the opening bell…

Give them the excuse to hold up the train, I am sure that assisting the children in to their seats is a very just reason :t_up:

[Balance]

Telling that SKT sp has held up very well in the recent market rout - suggests institutions are taking any sp weaknesses to accumulate.

Strong foundation laid for the sp to push to the next level.

[mistaTea]

https://www.imore.com/sky-offers-three-months-free-apple-tv-sky-vip-customers

Sky UK with a new deal to VIP customers to give 3 months free access to Apple TV+

When I read articles like this, it further highlights in my mind what Sophie and the team are trying to achieve with the new STB.

One aspect is to make the Sky TV content more accessible in a user friendly way. Not only modernise the entire UI but make searching easier and have their vast library of On Demand content the default view (as opposed to the current linear-dominated viewing experience with On Demand a secondary and clunky option. This needs to be flipped around).

Another aspect is building a platform that allows easier integration with other apps. Certain apps (like Disney+ for example) will allow other services to surface their content. If you have an AppleTV and subscribe to Disney+ then when you are viewing your AppleTV+ content whatever you are watching in Disney+ will appear in your 'Continue Watching' feed to make it easier for you to jump back in without having to launch the Disney+ app. NETFLIX don't allow this kind if integration at the moment, but I think they will be forced to change over time.

And, finally, pricing. Sky TV will be trying to secure as many wholesale deals as they can with Disney+, AppleTV+, Amazon Prime and NETFLIX. If they can offer these services as part of a bundle for cheaper than someone can get if they subscribe to these services directly, and the content from these services can be integrated well within the "Sky experience" then Sky will have successfully transformed from 'ageing dinosaur' to 'relevant aggregator in a streaming universe'.

[mistaTea]

https://www.nzx.com/announcements/389217

Now that Mark has joined the Board they will probably need to extend the deadline to June 2023 before they can let us know if we will get a few lollies by way of capital return.

You know, so he can really get his feet under the table and help assess the available options before doing anything silly like generate a return for shareholders :eek2:

[The diver]

https://www.nzx.com/announcements/389217

Sky welcomes new independent director, Mark Buckman

[The diver]

I sure hope not.... I find every important announcement from sky has me waiting for the next announcement for any certainty about their decisions. How long could they string us shareholders along?

[Balance]

I sure hope not.... I find every important announcement from sky has me waiting for the next announcement for any certainty about their decisions. How long could they string us shareholders along?

They have stated by June.

Why the big hurry?

[mistaTea]

They have stated by June.

Why the big hurry?

Yes they have stated June and they will not move from this date (my post was meant to be tongue in cheek).

Though it is questionable that they need more time to assess whatever opportunities they have (given the amount of time they have already had since they knew how much they would get from the property sale), it is also fair to say that Sophie and the team have been delivering the goods lately.

They really have done well and have set Sky on the path to return to growth which is fantastic.

So if Sophie needs a few more months to make sure they are doing the right thing (especially since she has recently refreshed her leadership team) then I think they have earned a bit more patience from shareholders (as frustrating as it can be sometimes, given how slow things have tended to move in the past).

[The diver]

no big hurry but not a fan of uncertainty. Whether it be dividend or property sale or otherwise. Each time some news is expected, i find myself in for another 4-6 month wait for any news.

I do agree though they have done a good job steering the ship as Mistatea has also stated.

[mistaTea]

Sky Sport increases by $3/month. Effective from my May Bill. If memory serves, we have around $350K subs that have Sky Sport - so that would be ~$13M a year extra revenue (including GST). If you take out GST it is probably around $11M that should mostly flow through to the bottom line (after taking out tax).

We’re writing to let you know about a change to our Sky Sport pricing, with an increase of $3 per month from 1 May 2022.

The Sky Sport monthly price change to $34.99 will appear on your May bill.Our goal at Sky is to deliver to our customers the sport they love, right across the year. This means we continue to make substantial investments in local and global sport, through event rights fees, production of live games and highlights, team and event sponsorships and partnerships with sport associations.

Every Sky Sport customer contributes to the strength of New Zealand sport through these investments, and your support is greatly appreciated.

As we head into the winter sports season, this investment has ensured sports fans can look forward to more Super Rugby action, as well as the All Blacks and Rugby Championship, the NRL and State of Origin, ANZ Premiership Netball and the Silver Ferns, A-League Football, Supercars, NBL and ANBL basketball, PGA and LPGA. We’re also excited to deliver this year’s FIFA World Cup, the Commonwealth Games, the T20 World Cup and the Premier League which will join our great line-up of global football from August.

And as a Sky Sport customer you can also watch your favourite sport anytime, anywhere, through our Sky Go app, as well as the BeIN Sports Connect and ESPN apps, available at no additional cost.

We look forward to bringing you an incredible year of sport and thank you again for being a Sky Sport customer. You can find out more about this change at www.sky.co.nz/sportpricechange (https://click.skycomms.sky.co.nz/?qs=59617fccdb62573ee0ee4a7baa120af2167d9ee9d25a63 9ae4bb4d8212b1da93f5e4ceb2a17652ec11f1251c4190299c 142caf5fae26d68b08109f6fbe2eaef4).

Regards,
The Sky Crew

[mistaTea]

Herald article: https://www.nzherald.co.nz/business/sky-sport-price-increase-rights-inflation-blamed-as-customers-to-pay-more/ZFTNPSJGKH7EUDOYYA7GLZAX7M/

Good move capping the increase at $3/month for now.

Some of the impact of rights cost inflation (the majority coming from sport) has been reduced by the cost saving initatives Sophie has led with guidance from the Foxtel guy. More savings to come too.

Bridging the remaining gap as much as possible with a modest increase to Sky sport is good - after all, how many satellite subs are likely to cancel their sub because sport has increased by 10 cents a day?

It is a modest increase in charges to each customer, however in aggregate will have a very big positive impact to earnings in FY23.

[Rustycage]

Would have preferred mistaTea being named as a director but you can’t always get what you want

Experience in “technology digital innovation” sounds like 10/10 ****ery 😞

Looking forward to June!

[mistaTea]

Would have preferred mistaTea being named as a director but you can’t always get what you want

Experience in “technology digital innovation” sounds like 10/10 ****ery 😞

Looking forward to June!

I am as shocked as you are mate.

By now I would have thought they would have tracked me down and begged me to join the Board…

[mistaTea]

https://www.nbr.co.nz/node/233821

Opinion piece in NBR.

[Balance]

https://www.nbr.co.nz/node/233821

Opinion piece in NBR.

What's the gist of the article?

My view is that it's not if but when M&A with SKT happens.

[mistaTea]

What's the gist of the article?

My view is that it's not if but when M&A with SKT happens.

Speculates on the likely future of Sky TV and in particular the likelihood of a deal with 2D once they have sorted out their merger and are ready to buy something else to gain more scale and something to differentiate their offering.

Also talks about the increased likelihood of someone else potentially coming in to get Sky at a relatively cheap price given the low SP (the vultures the headline refers to):

"As one source points out, private equity can pay a premium of 30% - 50% to take a business private; for Sky that would be $600-$700m, but because of around $140m in cash and no debt situation an interested party would effectively be paying only $460 - $560m, or 63c to 77c for every dollar of revenue Sky creates (based on the low end guidance range of $725m for the 2022 full year).

For a profitable company that has over a million customers and free cash flow in the order of $60m a year, he says it’s a good deal - one that would make sense for the new Vocus/Two Degrees merged entity, as soon as that $1.7b deal is done and dusted. But in the meantime, also an irresistible bargain for vultures, especially those for whom the future is not a driving factor."

[Almost-confused]

Speculates on the likely future of Sky TV and in particular the likelihood of a deal with 2D once they have sorted out their merger and are ready to buy something else to gain more scale and something to differentiate their offering.

Also talks about the increased likelihood of someone else potentially coming in to get Sky at a relatively cheap price given the low SP (the vultures the headline refers to):

"As one source points out, private equity can pay a premium of 30% - 50% to take a business private; for Sky that would be $600-$700m, but because of around $140m in cash and no debt situation an interested party would effectively be paying only $460 - $560m, or 63c to 77c for every dollar of revenue Sky creates (based on the low end guidance range of $725m for the 2022 full year).

For a profitable company that has over a million customers and free cash flow in the order of $60m a year, he says it’s a good deal - one that would make sense for the new Vocus/Two Degrees merged entity, as soon as that $1.7b deal is done and dusted. But in the meantime, also an irresistible bargain for vultures, especially those for whom the future is not a driving factor."

It was a good write up, I thought! Really hammers home the undervalued peice

[Habits]

Did someone press the go button? Forget about red lights, this is all in the green baby

[Balance]

It was a good write up, I thought! Really hammers home the undervalued peice

And the takeover and M&A scenario which will play out - sooner or later.

[mistaTea]

And the takeover and M&A scenario which will play out - sooner or later.

I was reflecting more on the general negative sentiment from the likes of Arie Dekker etc in the NBR article...

A few things stand out.

First, it is baffling that they continue to refuse to give Sky much credit for incredible progress. Sky currently have ~1M customer relationships which is far more than they ever had during their monopoly days. That is astounding given there is so much more competition these days and highlights that there is a huge demand for Sky TV's services (particularly streaming which is seeing double digit growth year on year). Then there is the fact that Sky continue to be able to sign deals with premium content owners. So clearly there is a demand from the owners of content to use Sky's services rather than launch their own OTT service in an already crowded market. At any point these guys could not renew their deal with Sky and enter the market with their own app - but the vast majority don't (and never will imo).
Revenue is increasing, Sky has launched complimentary services (broadband and there is scope for mobile in the future). Earnings and cash flows seem to have stabilised despite inflation in rights costs.

Second, they keep saying how doomed Sky is as a content aggregator (a sentiment I clearly do not share) but then when it is suggested that Sky do something big to secure their future by branching out into something like a merger with a telco, then they immediately poo-poo the idea with very questionable rationale. So according to the Arie's of the world Sky TV is doomed to extinction in its current state but shouldn't be able to transform into a business that owns hard telco assets.

So what should Sky do instead then? Well, Arie and the others never state what the solution is. I guess they think there is no solution and Sky just needs to go bankrupt even though all the evidence we observe does not support this conclusion.

It will be very hard for Sky to get a fair valuation on the public markets given the state of sentiment. Ultimately, I do believe Sky needs to continue on the path they are on (in terms of making improvements and progress) with a view to sell the business. That sale could be to someone like 2D or it could be to Private Equity. Either way, I think Sky will have a better time focussing on the business as a private enterprise.

[sb9]

Bolly bands getting squeezed for a break out to $3....

[mistaTea]

Bolly bands getting squeezed for a break out to $3....

Stop saying "Sky" and "three dollars" in the same sentence.

You know it makes me horny.

[sb9]

Stop saying "Sky" and "three dollars" in the same sentence.

You know it makes me horny.

Haha, we're surely on the move now, trading depth fully loaded...

[snigmac]

Sky will get to $3.2 by June 2022.

[mistaTea]

Sky will get to $3.2 by June 2022.

I need Stallion to verify this...

[snigmac]

I'll add that, in my opinion Sky will get to $3.2 by June, without a merger of acquisition :D

[thebusinessman]

$2.80 as of now, getting there!

[JohnnyTheHorse]

I need Stallion to verify this...

I will start off by saying that technical analysis isn't overly reliable at predicting exactly how far a move will go, especially when there is very little resistance. TA is however reliable (when used correctly) at identifying higher probability and good risk/reward setups, then helping time an exit.

Assuming we have a monthly bullflag on our hands here, then using the measure rule we would expect to $3.40-$3.50 as a price target before further monthly consolidation. I also look to previous price support/resistance areas to look for consolidation. There is no notable resistance up until the $3.80-$4 area as the price fell through there so quickly. This does not mean a new resistance won't be formed in this area - maybe a psychological level like $3.00 or $3.50.

Ultimately though I am not trading this stock and have just tucked away a maximum portfolio position. I only check in on the chart to ensure there are no TA red flags. Only thing required to make money here is patience.

[Joshuatree]

Bolly bands getting squeezed for a break out to $3....

Sounds like a bondage session
50 shades of Blue........sky

[mistaTea]

Sounds like a bondage session
50 shades of Blue........balls

Edited your post to say what I think you meant.

[mistaTea]

I will start off by saying that technical analysis isn't overly reliable at predicting exactly how far a move will go, especially when there is very little resistance. TA is however reliable (when used correctly) at identifying higher probability and good risk/reward setups, then helping time an exit.

Assuming we have a monthly bullflag on our hands here, then using the measure rule we would expect to $3.40-$3.50 as a price target before further monthly consolidation. I also look to previous price support/resistance areas to look for consolidation. There is no notable resistance up until the $3.80-$4 area as the price fell through there so quickly. This does not mean a new resistance won't be formed in this area - maybe a psychological level like $3.00 or $3.50.

Ultimately though I am not trading this stock and have just tucked away a maximum portfolio position. I only check in on the chart to ensure there are no TA red flags. Only thing required to make money here is patience.

Thank you Stallion. All I managed to understand from all that is you guaranteeing us $3.50 in the near term.

[JohnnyTheHorse]

Thank you Stallion. All I managed to understand from all that is you guaranteeing us $3.50 in the near term.

Yes you've hit the nail on the head. Just don't ask what 'near term' is.

[mistaTea]

NZM doing a deal with Google (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZM/389459/367390.pdf) (and looking to do something with Meta).

Excellent.

Once we get our SP out of the toilet with a good capital return program and dividend we will have the ability to use our shares as currency for a merger.

Telco still my much preferred option but it looks like the financial community as well as the Sky Board are not keen on that idea. And there is a fair argument to be made that it is not essential to own the physical assets when you can do wholesale deals - in fact, having three major telcos now ensures that wholesale rates and terms for players like Sky should remain very competitive. Sky's broadband offer is very competitive compared to Spark and Vodafone even though Vocus also need to take a cut.

But Sky has to continue to expand into new markets and revenue streams over time.

The other 'obvious' end game is a deal with NZM in order to become a bigger media play in NZ (backed up with wholesale broadband and eventually mobile plays). The TVNZ-RNZ merger would mean that a deal like this will get through the regulatory hurdles no sweat.

No way to know for certain how this goes for Sky - but one thing is very clear to me: Sky has a lot of different options moving forward. A lot of really good options.

But the timing is not quite right yet...good to see the SP tracking up a fair bit recently but it has much further to go to get near fair value for Sky given Earning Power and Balance Sheet strength.

As Stallion points out...patience is all that is required.

[snigmac]

I'm quietly optimistic that Sky will invest in the new entity with NZR. This would be a game changer for Sky as it will be a source of digital or other revenue that will offset any negative churn from satellite customers dropping off and paint Sky as a company with innovate digital income streams.

[mistaTea]

I'm quietly optimistic that Sky will invest in the new entity with NZR. This would be a game changer for Sky as it will be a source a digital or other revenue that will offset any negative churn from satellite customers dropping off and paint Sky as a company with innovate digital income streams.


Aye, and Sophie has beed leading the team in good decision making lately so we do have reason to have faith that they will be picking the best option for Sky, long term.

I mean...Sophie did screw the pooch somewhat horrifically with the whole RugbyPass fiasco (she was the one who brought the deal to Martin - and then he clearly panicked and paid too much).

So she definitely ain't perfect, but she's all we got. And doing a good job so far.

[RTM]

Thank you Stallion. All I managed to understand from all that is you guaranteeing us $3.50 in the near term.

Be hillarious if that Stalion JohnnyTheHorse is a female !

[mistaTea]

https://www.nzherald.co.nz/sport/sailgp-season-finale-to-be-broadcast-free-to-air-after-deal-secured-with-nzme-and-sky-tv/7UL5SYOTPE5PCOHQPPBDH4UKRY/

Great to see SKT and NZM keep find new ways to work together...

[winner69]

Jeez those rugby commentators on SKY are just so awful

Bad enough to cancel SKY Sport ….seeing I’m told it’s gone up in price as well

[mistaTea]

Jeez those rugby commentators on SKY are just so awful

Bad enough to cancel SKY Sport ….seeing I’m told it’s gone up in price as well

With all the zillions of dollars you keep telling us you have, I doubt an increase of 10 cents per day will cause you to have to cut down on the Dom Perignon mate…

[Balance]

The stage is set :

MinterEllisonRuddWatts is predicting another busy year, singling out the healthcare, technology and financial sectors as those which will remain in the spotlight, as well as the food and beverage industry.

https://www.nzherald.co.nz/business/mark-lister-new-zealand-businesses-catch-mergers-and-acquisitions-fever/GNE25KSI7KFKMPG4CT7LPN3OH4/

There's been a lot of corporate activity in recent months, and it feels like we might have caught M&A (mergers and acquisitions) fever.

Law firm MinterEllisonRuddWatts recently released its fifth annual M&A Forecast report, which notes that 2021 was indeed the biggest year on record for such activity in New Zealand.

One high profile announcement has come from the Government itself recently, with the proposed creation of a new public media entity incorporating Radio New Zealand and TVNZ.

There's also the merger of 2degrees and Orcon, which could see the formation of New Zealand's third-largest telecommunications company.
paywalled

[mistaTea]

The stage is set :

MinterEllisonRuddWatts is predicting another busy year, singling out the healthcare, technology and financial sectors as those which will remain in the spotlight, as well as the food and beverage industry.

https://www.nzherald.co.nz/business/mark-lister-new-zealand-businesses-catch-mergers-and-acquisitions-fever/GNE25KSI7KFKMPG4CT7LPN3OH4/

There's been a lot of corporate activity in recent months, and it feels like we might have caught M&A (mergers and acquisitions) fever.

Law firm MinterEllisonRuddWatts recently released its fifth annual M&A Forecast report, which notes that 2021 was indeed the biggest year on record for such activity in New Zealand.

One high profile announcement has come from the Government itself recently, with the proposed creation of a new public media entity incorporating Radio New Zealand and TVNZ.

There's also the merger of 2degrees and Orcon, which could see the formation of New Zealand's third-largest telecommunications company.
paywalled

Given the low SP and strong balance sheet…I suspect private equity will indeed take sky out long before she has any opportunity to explore deals with the likes of 2D or NZM.

[Jay]

Just noticed add now in the F1 coverage, until recently, when they went to a add break it just left a screen saying "...be back shortly while SkyUK were in an add break..." or something similar, - trying to boost their revenues from the sports coverage?? At least you can skip thru them if not watching live!

[mistaTea]

Just incredible that Sky's Enterprise Value right now is still only around $20M more than NZME...

Hence why, despite my lofty ideals of what Sky TV should become - I suspect PE will make an offer that The Board would be compelled to present to shareholders long before then.

Not my ideal outcome, but probably realistic given where things sit.

Sure, we would get a quick capital gain on our shares...but ultimately lose out on participating in the long term prospects.

[mikelee]

yes, agree. I'm really looking forward to the annual dividend to supplement my low wages...lol

[mistaTea]

A bit of a write up on Sky institutional ownership:

https://simplywall.st/stocks/nz/media/nzx-skt/sky-network-television-shares/news/sky-network-television-limiteds-nzseskt-large-institutional


Between instos and hedge funds, ~80% of Sky shares are tied up.

Simply Wallstreet put sky's fair value at $4.35/share (https://simplywall.st/stocks/nz/media/nzx-skt/sky-network-television-shares#valuation) (Market cap of ~$760M). And that is based on a FCF profile that assumes Sky just stays as it is (no additional services added like Sky Mobile, or any other tie ups with complimentary services).

[Balance]

A bit of a write up on Sky institutional ownership:

https://simplywall.st/stocks/nz/media/nzx-skt/sky-network-television-shares/news/sky-network-television-limiteds-nzseskt-large-institutional


Between instos and hedge funds, ~80% of Sky shares are tied up.

Simply Wallstreet put sky's fair value at $4.35/share (https://simplywall.st/stocks/nz/media/nzx-skt/sky-network-television-shares#valuation) (Market cap of ~$760M). And that is based on a FCF profile that assumes Sky just stays as it is (no additional services added like Sky Mobile, or any other tie ups with complimentary services).

Was a bit of a selldown yesterday by an insto but what was interesting is that the last of the line of stock was crossed to the buyer at $2.75 after market close - so it looks like $2.75 to $2.80 as a trading range for instos to pick up stock.

Could be the last opportunity to get set before SKT heads towards $3.50?

[mistaTea]

Could be the last opportunity to get set before SKT heads towards $3.50?

yes I think so.

We seem to have been generally trending up for some time now.

The next catalyst will be whatever they announce in June in terms of new growth projects and capital management.

This may be the last opportunity for cheap shares, however there is no reason to really expect the price to increase significantly from the $2.75-$2.80 range until closer to June I don't think. So perhaps another couple of months to patiently accumulate.

And this all assumes a good news story in June! If they drop the ball then $2.75 might look expensive to short term investors if the price drops.

Though it is difficult to imagine a calamity for Sky between now and June given the solid earning profile and Smaug-like hoard of gold in the war chest.

[snigmac]

I think the share price will build to $3 and upto $3.20 before June. In my opinion, the current trend would suggest this (and it is reasonable to expect this). We have had a string of positive announcements, the company is delivering (and as a fail safe, excess funds may be provided to shareholders)... What more do you want that is within the company's power?

I know I am having difficulty with being patient. I have alot of faith that the company has changed... But I trust we are on or past the positive inflection point and the S/P will continue to climb.

[mistaTea]

I think the share price will build to $3 and upto $3.20 before June. In my opinion, the current trend would suggest this (and it is reasonable to expect this). We have had a string of positive announcements, the company is delivering (and as a fail safe, excess funds may be provided to shareholders)... What more do you want that is within the company's power?

I know I am having difficulty with being patient. I have alot of faith that the company has changed... But I trust we are on or past the positive inflection point and the S/P will continue to climb.

Amen, brother.

[mistaTea]

Long term, I still think Sky and 2D tie up.

But given everything that is happening right now (and in particular the 2D/Orcon merger that is underway) the chance of this happening 'soon' is zero I think.

I do think we are going to see the companies strengthening their partnership in the near to medium term.

2D already has a wholesale agreement with Sky for NEON and Sky Sport NOW (long may this continue!).

But streaming subs are not as sticky as STB customers. Where the vast majority of STB customers have been with Sky for 5+ years...the average tenure of a NEON sub is 13 months. Perhaps that might change somewhat if more NEON subs can be bundled in with telco like they get with 2D now, however I think you will find their average tenure will still lag STB considerably.

So, it seems to me that there is an opportunity for Sky and 2D (or any other telco for that matter) with the new STB.

2D could offer bundles that give Sky Tv discounts if they take broadband/mobile (the size of the discount could depend on whether you take broadband, mobile or both). They don't have to go down the whole reseller route that Vodafone used to have whereby they manage and rebrand the STB etc. Just leave the Sky relationship with Sky, but build an API between Sky and 2D systems so that qualifying Sky customers receive a discount based on their relationship with 2D.



Sky Bill the customer the 'normal' fee - discount.
Sky Bill 2D each month for a portion of the discount given to the customer
2D don't need to invoice the customer or manage any part of the relationship they have with Sky


2D would only provide the discount for subs of the new STB (not MySky) so that they can hammer away in the marketing about how customers will benefit using their world class fibre network to stream their content using Sky's latest tech etc etc.

So, for example:



ARPU $80/month
2D discount knocks off $15/month - so customer only pays $65/month to Sky
Sky bill 2D $10/month for each customer (so Sky eat a $5/month discount however the benefit is that the STB becomes stickier based on their relationship with 2D)
2D take a $10/month hit subsidising the Sky discount but now have broadband and/or mobile customers that are stickier.


This would also give both parties a good opportunity to see how successful/popular Sky/broadband/mobile/energy bundles are in NZ before sitting down to consider an even closer relationship.

It could be a good way for Sky to return their STB base back to growth whole continuing to grow NEON/SSN subs.

[snigmac]

I also like the STB, it is very sticky and will retain existing clients or secure new clients for Sky. I'm think it's great that Sky doesn't have to lock into working with only one Telco and can play the field.

I suspect if ever a merger with Sky and 2D or a entity was to occur, Spark could potentially kill off it's TV or streaming arm to stop this from happening (as long as this arm is there, I can see the commerce commission allowing something through).

[JohnnyTheHorse]

I don't buy the argument that 2D won't make a move for the foreseeable future. Look who owns them (i.e. it won't be 2D making the purchase). If they see value and a strategy fit then they will bounce on it, as it's likely only going to get more expensive. It can continue running as a standalone business until they are ready to combine things.

[mistaTea]

I don't buy the argument that 2D won't make a move for the foreseeable future. Look who owns them (i.e. it won't be 2D making the purchase). If they see value and a strategy fit then they will bounce on it, as it's likely only going to get more expensive. It can continue running as a standalone business until they are ready to combine things.

Well, what you say is correct...MIRA/Aware have loads and loads of $$$ and of course they could go ahead and have a go at buying Sky at any point if they see there is value there.

But, two things:



SNT is nowhere near the asset class they typically buy. Pure speculation on my part, but I believe that if MIRA/Aware were to go for Sky they would need some convincing from the 2D CEO (soon to be Mark Callander). But Mark is completely tied up with the current merger, and he will be tied up for some time now working to actually merge the two assets of 2D and Orcon. I would be surprised if he was actively lobbying MIRA/Aware to buy Sky now with everyything else he has on his plate.
MIRA/Aware are currently in a fight with Morrison & Co to buy Aussie telco Uniti. This is right in their sweet spot in terms of asset class and given Morrison & Co have just matched their offer of $3.4B it looks like there is going to be a bit of a punch up here. Could MIRA/Aware have the bandwith to go for Sky right now too? Maybe. Is it realistic that they would? I don't think so.


So though you are right in principle, I don't think it is realistic.

Of course, given my hopes for Sky to eventually become a telco I am more than happy to be proven wrong on this!

[mistaTea]

https://www.nbr.co.nz/story/nzme-mulls-buyback-benefits-execs

NZSA questioning why NZME are doing a buyback versus a capital return (like Tower Insurance has done).

I think continuing with the buyback while their SP has increased so much is questionable. Shareholders would surely be better off with a tax free capital return. But NZME management will benefit under their new incentive scheme which is based in part on EPS (and the NZME Board won't confirm if they will make an adjustment to the calculation to remove the positive impact of the buyback on EPS)

NZSA also note that Osmium Partners (who own ~16% of NZME) might be disadvantaged taxwise if they did a return of cash, so would possibly prefer an on market buyback.

Will be very interesting to see what Sky do here.

I think that if a tax free capital distribution is an option (which it is) then that is the preferred way to go. Give the cash to the owners of the business and then let them decide what they want to do with it.

Tragics like me will probably go and buy more Sky shares (we just can't seem to help ourselves) so we will increase our ownership % like we would under a buyback program. But others might want to invest somewhere else. Or spend the money on plonk, smokes and women. Regardless of what, we would have maximum options at our disposal.

[JohnnyTheHorse]

Another attempt at a $2.80 resistance break here. Nice little cup and handle on the daily chart. Let's see if we get the follow through this time.

[sb9]

Decent block sitting at 2.81 swiped through, looking good to push through 3 mark soon.

[Balance]

Decent block sitting at 2.81 swiped through, looking good to push through 3 mark soon.

Like hot knife through soft butter.

[sb9]

Like hot knife through soft butter.

Knife's still hot by the looks...

[Balance]

Knife's still hot by the looks...

$2.85 - nice 40c gain on the last lot I bought as a top up this month.

[JohnnyTheHorse]

Looks like a confirmed breakout. Can't think of any other NZX company making new highs right now...

[mistaTea]

Looks like a confirmed breakout.

I love it when you talk dirty to me, Stallion.

[Baa_Baa]

Looks like a confirmed breakout. Can't think of any other NZX company making new highs right now...

Breakout of Bull Flag Ascending Triangle. Bullkowski suggests 70% chance of meeting price target $3.37

[Balance]

Breakout of Bull Flag Ascending Triangle. Bullkowski suggests 70% chance of meeting price target $3.37

One cannot have enough of these little beauties with that kind of dirty talk, mistaTea?

[sb9]

Closed at 2.70 on ASX, low volume push at finish. Which is 2.91 NZ, let’s see what tmrw has in store.

[mistaTea]

Closed at 2.70 on ASX, low volume push at finish. Which is 2.91 NZ, let’s see what tmrw has in store.

MissusTea is gonna get it tonight…

[moimoi]

Has anyone checked in on Ogg lately......?

[Balance]

Has anyone checked in on Ogg lately......?

He is ok - he said he booked a six figure gain and was satisfied with the outcome?

[Joshuatree]

Thank Gogg for that! No more GIFs,yay.

[mistaTea]

He is ok - he said he booked a six figure gain and was satisfied with the outcome?

Ogg has been suffering from priapism ever since he sold and watched the SP rocket up immediately after.

[RRR]

Ogg has been suffering from priapism ever since he sold and watched the SP rocket up immediately after.

:lol::lol::lol:

[Rustycage]

Breakout of Bull Flag Ascending Triangle. Bullkowski suggests 70% chance of meeting price target $3.37

Not throwing shade, but are these genuine technical trading terms or stuff you just made it?

Whatever it is, it sounds positive 😀

💰💰💰

[Balance]

Ogg has been suffering from priapism ever since he sold and watched the SP rocket up immediately after.

Of the recurrent ischemic type?

[Baa_Baa]

Ogg has been suffering from priapism ever since he sold and watched the SP rocket up immediately after.

There's a psychological definition of the response to having been in a loss situation for a long time but suddenly there's a turnaround, which was exactly what you bought into happening, but then sell the moment the SP is above your holding price. It doesn't have any phallic references though.

Understandable considering carrying a huge loss on a promise of some day making a profit is stressful, which can easily revert a mindset of 'get my capital back' as a priority from 'make me some profit', even though the later was always the investment thesis.

Can't recall what that definition is though, but seen it many times here, many many times.

The investment hypothesis in SKT is really simple, it's still in a turnaround and if it succeeds then there's a few bags here. Signs have been that the turnaround is happening and the share price (market) is realising that.

Make it more complicated if you want, make it emotional at your peril. Just decide, act, and continuously test your convictions, makes investing more simple.

[mistaTea]

Of the recurrent ischemic type?

Without a doubt.

[Getty]

The poor bloke deserves a stiff drink, after all that.

[Baa_Baa]

Not throwing shade, but are these genuine technical trading terms or stuff you just made it?

Whatever it is, it sounds positive 



Hey Rusty yes they are TA terms, google Bulkowski, search Bullish Ascending Triangle, read his probabilities, apply his projections. Not too challenging. Just another onramp for technical analysis to consider.

Positive? Oh yes, most certainly positive, not even just because of the TA. It's real.

[Balance]

The poor bloke deserves a stiff drink, after all that.

Think so? Could be one stiffie too many though?

[mistaTea]

Think so? Could be one stiffie too many though?

Last time he had a stiffy or two after watching an increase in SKT SP he ended up in the deli section of his local New World slapping the salami.

[Joshuatree]

Reminds me of a dire straits hit ,"Salamis for nothing and the stiffs for free"

[Balance]

Reminds me of a dire straits hit ,"Salamis for nothing and the stiffs for free"

Stop it!!! My partner thinks I have gone mad with my laughter!

[mistaTea]

Reminds me of a dire straits hit ,"Salamis for nothing and the stiffs for free"

Pretty sure Egg has MJ’s ‘Beat it’ on repeat these days.

[snigmac]

On track for $3 to $3.20 before June :D

[mistaTea]

Good to see that the market valuation for Sky has now crossed the $500M mark.

Not that long ago Mr Marker said Sky was only worth $200M don't forget!

[mistaTea]

https://media1.giphy.com/media/12QBgS1xGmP0rK/giphy.gif?cid=82a1493bbkgq3uq1e3gfq8vglns8b0gsw5cp uh8bvra4hrk8&rid=giphy.gif&ct=g

[snigmac]

Mate there's still more climbing to go (in the coming month)

[mikelee]

I'll be ecstatic if SKY announces a 20 cent dividend in Sept. :D

[mistaTea]

I'll be ecstatic if SKY announces a 20 cent dividend in Sept. :D

Well yes, a $60K dividend would be enthusiastically accepted…

[Balance]

Well yes, a $60K dividend would be enthusiastically accepted…

Impressive numbers, mistaTea!

[airedale]

Well yes, a $60K dividend would be enthusiastically accepted…
Steady on, MT, the old proverb about counting chickens before the eggs hatch.....and all that:)

[Balance]

Steady on, MT, the old proverb about counting chickens before the eggs hatch.....and all that:)

Very true, Airedale.

We definitely do not want another Ogg situation ever again!

But SKT looks good to break the $3.00 level.

[mistaTea]

Steady on, MT, the old proverb about counting chickens before the eggs hatch.....and all that:)

Oh yes indeed.

But a $35M would probably be a 65-70% payout on an adjusted FCF basis (which would sit in the 50-80% payout range of FCF excluding one-off items).

So if we assume that The Board do not reneg on this commitment to shareholders, then a $35M dividend is not unrealistic. They may pay less depending on the needs of the business, but a $35M payout would still leave them with considerable Balance Sheet strength.



$150M projected cash balance - $35M September dividend = $115M cash.
In June they let us know about what they want to invest in as well as possibilities around a capital return or buyback.
If they hold on to $25M from the peoperty sale to enhance investents that leaves $90M ($115M - $25M).
If they do a $30M capital return or buyback they still have $60M in the bank (and zero debt).


So yes, a $35M fully imputed dividend is hardly aggressive and would seem very reasonable.

In which case, I look forward to my ~$60K payment in September :cool:

[Sideshow Bob]

Oh yes indeed.

But a $35M would probably be a 65-70% payout on an adjusted FCF basis (which would sit in the 50-80% payout range of FCF excluding one-off items).

So if we assume that The Board do not reneg on this commitment to shareholders, then a $35M dividend is not unrealistic. They may pay less depending on the needs of the business, but a $35M payout would still leave them with considerable Balance Sheet strength.



$150M projected cash balance - $35M September dividend = $115M cash.
In June they let us know about what they want to invest in as well as possibilities around a capital return or buyback.
If they hold on to $25M from the peoperty sale to enhance investents that leaves $90M ($115M - $25M).
If they do a $30M capital return or buyback they still have $60M in the bank (and zero debt).


So yes, a $35M fully imputed dividend is hardly aggressive and would seem very reasonable.

In which case, I look forward to my ~$60K payment in September :cool:

Agree with your rationale.

To borrow anothers phrase, I think you are very "well positioned"! :p

[mistaTea]

But SKT looks good to break the $3.00 level... today by 2:36PM precisely..I promise ya mistaTea!!.


Where is my $3 mate?

[Sideshow Bob]

Where is my $3 mate?

Posted at 2:37pm....:lol::laugh::lol:

[Habits]

UP 10c over the week. 20c over the last month.

Up and staying that way.

[mistaTea]

UP 10c over the week. 20c over the last month.

Up and staying that way.

Can’t believe people are prepared to pay ~3 times sky’s value (a highly profitable business) for Air NZ…an actual piece of sh1t…

[Habits]

Can’t believe people are prepared to pay ~3 times sky’s value (a highly profitable business) for Air NZ…an actual piece of sh1t…

The difference between the two companies is one is falling from the Sky and the other is heading into blue SKY .. lol laughing at my own stupid joke ...

[mistaTea]

Sentiment and history. The difference between the two is one is falling from the Sky and the other is heading into blue SKY .. lol laughing at my own stupid joke ...

Best dad joke ever.

[Getty]

Pretty sure Egg has MJ’s ‘Beat it’ on repeat these days.

We always knew Ogg was a hard case, but...

[mistaTea]

We always knew Ogg was a hard case, but...

My fault entirely.

In the end I was constantly telling him to…get a grip…

[Getty]

My fault entirely.

In the end I was constantly telling him to…get a grip…

When it comes to Sky though, it looks like you may have pulled it off..

[mistaTea]

When it comes to Sky though, it looks like you may have pulled it off..

A way to go yet. But I am surely edging towards one hell of a climax with this one!

[mistaTea]

5 mins into the 2nd half and the Warriors haven’t choked…yet…

[Sideshow Bob]

5 mins into the 2nd half and the Warriors haven’t choked…yet…

Every dog has its day.....and they aren't the Bronos of old.

[Moneyman]

A warriors team in contention can only be good for subscriptions!

[winner69]

A warriors team in contention can only be good for subscriptions!

What date is Grand Final?

Need to keep that date free

THIS IS OUR YEAR

[mistaTea]

A warriors team in contention can only be good for subscriptions!

When you stand back and reflect on the amazing sport contracts sky have locked up…

It’s no wonder Sky Sport NOW subs are absolutely rocketing through the roof.

Even if you aren’t prepared to stump up $399 for an annual pass (the cheapest option for year round fans)…$39.99/month ain’t bad for a no-contract monthly sub.

That is only $9.23 per week…

…or $1.31 per day (about a quarter the cost of a decent cup or coffee in Auckland).

[Sideshow Bob]

Haven't heard any complaints on the Black Caps coverage this arvo.

Then again it is a 2nd string team vs the Dutchies - not exactly the biggest drawcard to put pressure on their streaming.... ;)

[mistaTea]

https://www.smh.com.au/business/companies/stakes-are-high-as-foxtel-ipo-decision-looms-20220403-p5aad5.html

Decision on whether Foxtel will IPO expected this month.

A number of investment bankers cool on the idea.

Given Sky TV's low market value I will be very surprised if the Foxtel IPO goes ahead. I don't the market will be prepared to pay anywhere near the sum they News Corp and Telstra would expect for it.

I would argue that Sky is in a stronger position than Foxtel in many ways because our key rights are locked up for years to come whereas they have big contracts (like HBO) coming up for renewal next year. Assuming HBO still does a deal with a content aggregator in Aussie (we have to see how their plans evolve after the Discovery merger) Foxtel still have to compete with other players like Stan. So renewing is going to be expensive, no two ways about it.

Sky SP currently on the up trend, but market cap still low relative to earning power and cash balance.

I still think Foxtel would be better off doing a deal with Sky to merge. By becoming a larger trans-Tasman content aggregator (supplemented with telco services) I think they will have a stronger hand to play in future content rights negotiations. Being able to continue to secure premium content on reasonable terms is what matters, at the end of the day.

[snigmac]

My gut feeling is that Sky will get to NZD700m market cap. I think this was their market cap around 2017/2018. My opinion is that the company is in a stronger position now, then it was then :D

[Sideshow Bob]

My gut feeling is that Sky will get to NZD700m market cap. I think this was their market cap around 2017/2018. My opinion is that the company is in a stronger position now, then it was then :D

That would equate to $4/share.......

[sb9]

That would equate to $4/share.......

Yeah, that's the figure big boys will be working towards. Another buck from current level is what their abacus will be indicating...

[Habits]

My gut feeling is that Sky will get to NZD700m market cap. I think this was their market cap around 2017/2018. My opinion is that the company is in a stronger position now, then it was then :D

Over what timeframe would you say

[mistaTea]

https://www.nzherald.co.nz/sport/nzme-secures-exclusive-radio-rugby-commentary-rights/I5T7IEOFNY7PX2BV3X5HRO7WX4/

Meanwhile we keep getting closer and closer with NZME…

[Habits]

Over what timeframe would you say


To answer my own question... By the next report date when a big healthy divie is announced would be my pick

[snigmac]

Over what timeframe would you say

I'm hoping that it will get there by the end of the year... But it will depend on how the capital management plan shapes out.

[mistaTea]

To answer my own question... By the next report date when a big healthy divie is announced would be my pick

$700M market cap would be a 5% yield if they do pay $35M in divvie. I am not sure we quite get to $700M (the market may not be convinced that Sky can sustain a $35M payout) but we should comfortably get above $600M I think.

And if they do a buyback or capital return in June then our returns will be even higher.

Plenty to look forward to.

[sb9]

$700M market cap would be a 5% yield if they do pay $35M in divvie. I am not sure we quite get to $700M (the market may not be convinced that Sky can sustain a $35M payout) but we should comfortably get above $600M I think.

And if they do a buyback or capital return in June then our returns will be even higher.

Plenty to look forward to.

Sure thing, in the meantime will we hit $3 today or sometime this weeks. Trading depth suggests could be either today or tomorrow.

[mistaTea]

Sure thing, in the meantime will we hit $3 today or sometime this weeks. Trading depth suggests could be either today or tomorrow.

Perhaps I am being too pessimistic at the moment because of the history of Mr Market being overly harsh on Sky.

I note that the NZME SP is up 120% from a year ago and the main difference I see between the companies is that NZME have already started paying a dividend and are currently in the process of a buyback.

In that light, $4/share does not seem obscene at all.

[snigmac]

Perhaps I am being too pessimistic at the moment because of the history of Mr Market being overly harsh on Sky.

I note that the NZME SP is up 120% from a year ago and the main difference I see between the companies is that NZME have already started paying a dividend and are currently in the process of a buyback.

In that light, $4/share does not seem obscene at all.

Sky is also in a better point in their story compared to the rest of the market. There is alot more uncertainty with A2M, AIR and etc, which will hopefully, encourage more ppl to invest in Sky TV. These companies are saying they will have a turn around in the future. sky TV has had a turn around already, has delivered and is delivering.

[Rustycage]

Think I may have asked this earlier in the thread, but at what SKT price do holders prefer a larger div over a buyback?

Guess what I’m asking is at what price do you prefer the money in your pocket to buy more SKT yourself/other co’s/new boat versus mgmt increasing your ownership level in SKT at the market price

Think for me that price is in the low-mid $3 NZ

[mistaTea]

Think I may have asked this earlier in the thread, but at what SKT price do holders prefer a larger div over a buyback?

Guess what I’m asking is at what price do you prefer the money in your pocket to buy more SKT yourself/other co’s/new boat versus mgmt increasing your ownership level in SKT at the market price

Think for me that price is in the low-mid $3 NZ

Well, I actually think that Sky should do a tax free capital return similar to what Tower have done. Regardless of what the SP is. Since the funds have come from an asset sale Sky have this as an option. I think this would be in the best interest of most shareholders as it gives them choice. When they receive the cash, if they think Sky TV is still undervalued then they can use the money to buy SKT shares (and increase their % ownership of the business as would happen under an on market buyback if they just held). Or they can use the money for something else. Maximum flexibility for the shareholder.

It has been pointed out that some large instos (like Osmium) may have tax implications with a capital return and may favour a buyback. I am not sure about this.

If they do a share buyback I think anything under $600M is comfortably a no-brainer (so ~$3.40/share).

[mistaTea]

My gut feeling is that Sky will get to NZD700m market cap. I think this was their market cap around 2017/2018. My opinion is that the company is in a stronger position now, then it was then :D

I want Stallion to verify your gut feeling with hard statistics.

Only then will I sleep easy at night and dramatically increase my personal spending on the assurance that Sky TV will eventually pay for my needless and indeed, senseless consumption…

[snigmac]

I'm unsure if u can do a technical analysis based on market conditions and Sky's share price from 2018?

[JohnnyTheHorse]

I want Stallion to verify your gut feeling with hard statistics.

Only then will I sleep easy at night and dramatically increase my personal spending on the assurance that Sky TV will eventually pay for my needless and indeed, senseless consumption…

Technical analysis confirms there is a 100% probability of $4 by July 31st. Spend up large mate, the economy needs it.

[mistaTea]

Technical analysis confirms there is a 100% probability of $4 by July 31st. Spend up large mate, the economy needs it.

You say true and I say thank ya.

[Quantitative Easing]

Sky might be the only bright spot for 2022 as far as assets go.

[Benny1]

Will Sky broadband ever expand to wireless 4g coverage?
Would consider going to Sky broadband today apart from the fact that I will be moving later this year to a rural area with no Fibre...if I could change my subscription to wireless at that time them I would certainly consider moving to Sky Broadband.
I know as a Sky subscriber I can go on to a rolling monthly contract now,so I am not locked in...but don't think I can be arsed moving to Sky Broadband then change again later in the year/ early next year.

[JohnnyTheHorse]

Some portfolio growth elsewhere has allowed me to pick up another 10,000 shares today and stay within my portfolio limits. Doing my bit Mistatea, trust you're doing the same.

[LaserEyeKiwi]

Will Sky broadband ever expand to wireless 4g coverage?
Would consider going to Sky broadband today apart from the fact that I will be moving later this year to a rural area with no Fibre...if I could change my subscription to wireless at that time them I would certainly consider moving to Sky Broadband.
I know as a Sky subscriber I can go on to a rolling monthly contract now,so I am not locked in...but don't think I can be arsed moving to Sky Broadband then change again later in the year/ early next year.

To do that Sky would need to use a competitors cellular network (Spark / Vodafone / 2Degrees).

However if you are going rural the cellular coverage is likely not great. Your best bet for high speed access is probably Starlink. https://www.starlink.com/

[Not The Chosen One]

The post 3pm climb. Becoming a daily habit.

[mistaTea]

The post 3pm climb. Becoming a daily habit.


At this rate we might have to change the name of the company to Sky Network Television unLTD!

AHHH HU HU HU HU HU!!

[Habits]

Some portfolio growth elsewhere has allowed me to pick up another 10,000 shares today and stay within my portfolio limits. Doing my bit Mistatea, trust you're doing the same.

Talking numbers Sky is 3/4 my share portfolio.... nearly one m. Going for broke!

[Rustycage]

Admire the strength of stomach that level of concentration requires!

Get rich or die tryin’

[mistaTea]

Talking numbers Sky is 3/4 my share portfolio.... nearly one m. Going for broke!

Balls deep.

I love it!

[Old mate]

Talking numbers Sky is 3/4 my share portfolio.... nearly one m. Going for broke!

Jeepers. Nice

[snigmac]

Talking numbers Sky is 3/4 my share portfolio.... nearly one m. Going for broke!

Is sounds like your portfolio is valued at 1million and that you have invested 750k into Sky. I wish I did this.

[Arbroath]

Talking numbers Sky is 3/4 my share portfolio.... nearly one m. Going for broke!

And I thought I was brave with 37% of portfolio in SKT & STU.

I hope you make it big Habits!

[Habits]

Love ya comments I really do... Sky is such a dead set winner in my opine that it doesnt feel like a risk. The waiting is delayed "gratification" holding on for the divie or buy back eh MT