apn - dual listing

[tsb]

Anyone any thoughts

an article in the independant 23/06/04 showing some of the effects on the dual listing.

also herald :-
APN shares trade at $4.69 after listing on NZX

21.06.2004 1.59 pm

Shares in APN News & Media started trading at $4.69 when their dual listing opened on the New Zealand Exchange at midday.

By 1pm, $58,525 worth of the shares, which are also listed on the Australian Stock Exchange, had changed hands.

APN -- 40.5 per cent owned by Tony O'Reilly's Independent News & Media -- looked set to be ranked 14th on the benchmark NZSX-50 index.

APN chief financial officer Peter Myers expected New Zealand investors to warm to the company's listing here.

The company would not issue any new shares and trading was likely to be "subdued in the early days," he told NZPA today.

"I think the advantage for APN is the additional market for capital and a shareholding base.

"But, I think it also reflects the position and commitment we have in New Zealand."

In addition to the Herald, APN publishes nine regional daily newspapers and more than 35 non-daily publications around the country.

It also operated Radio Network's 112 radio stations with Clear Channel Communications and was the leading outdoor advertising operator in New Zealand.

Mr Myers said APN was "very happy" with the base of assets it had, and was looking at "product development".

He ruled out a South Island edition of the Herald, and said APN had no immediate plans to acquire other media operations in this country.

Dividends would be paid out in April and October, with about 80 per cent of profits paid out.

Meanwhile, NZX markets development manager Geoff Brown said APN was a significant listing for the New Zealand securities markets.

- NZPA

cheers
tsb

[BIRMANBOY]

Is anyone following/trading this stock. Seems to have sunk to an interesting level?

[Toasty]

I just thought it might be timely to ask if anyone had an opinion on APN. Is there any reason the yield won't hold up? 13.5% gross...

[BIRMANBOY]

13.5 is the ratio of the current share price to last years dividend so is a little misleading. Look at the share price over the last 5 years...interesting that it has been in a death dive for a long time. I thought it was at an interesting price level in June..it just keeps going down..No announcements from Company but they were hit by Queensland floods and CHCH earthquake. Personally I am interested but might wait a bit to see how low it goes still. I made money on it before so like it. i would look at it for a capital increase rather than yield though. IMHO i think they will cut dividends drastically but thats guess work pure and simple.
I just thought it might be timely to ask if anyone had an opinion on APN. Is there any reason the yield won't hold up? 13.5% gross...

[Toasty]

13.5 is the ratio of the current share price to last years dividend so is a little misleading. Look at the share price over the last 5 years...interesting that it has been in a death dive for a long time. I thought it was at an interesting price level in June..it just keeps going down..No announcements from Company but they were hit by Queensland floods and CHCH earthquake. Personally I am interested but might wait a bit to see how low it goes still. I made money on it before so like it. i would look at it for a capital increase rather than yield though. IMHO i think they will cut dividends drastically but thats guess work pure and simple.

Maybe this is the beginning of the death of print media?

[BIRMANBOY]

They do billboards, radio etc..not just print...There are a lot of buyers lined up at 90cents plus/minus on the APN Ax. I think there is money to be made here once the panic has stopped.
Maybe this is the beginning of the death of print media?

[_Michael]

They do billboards, radio etc..not just print...There are a lot of buyers lined up at 90cents plus/minus on the APN Ax. I think there is money to be made here once the panic has stopped.

I agree entirely. Am starting to pull some numbers together and speak to industry insiders as this is TOO CHEAP.

My understanding is some big funds are selling due to the triple whammy hitting share price -

1. Christchurch / Queensland
2. Softening ad markets
3. The structural decline in print

HOWEVER....

at 5x net profit for last year this is getting too cheap because, imho the company has some really strong franchises including:

1. NZ Publishing. Includes nzherald.co.nz (number one portal in the country) and NZ Herald print (also number one in the country). Both are cash cows with have unique leadership positions by a wider margin than you would see in any international markets. Print has highest circulation in 7 years and for many advertisers still relevant.
2. NZ Publishing also includes market leading magazines such as NZ Womans Weekly.
3. NZ Publishing also includes number one daily deal site that has GrabOne that has quickly grown into very valuable market leading business
4. NZ Publishing is starting to leverage its mastheads into digital age more and more, better and better. NZ Herald now has iphone and Ipad apps that they will look to monetise once customer base is large enough. They are already the most downloaded general news and info apps in NZ.
5. Australasia and Pacific billboards and outdoor business is flying and AdShell has VERY strong market position (customers from my industry lining up to get space in them..)
6. The Radio Network (TRN) is world class and includes 4 of top 5 stations in NZ (e.g. Hauraki, Classic Hits, ZM etc reaching broadest demographic and also leveraging their digital assets such as websites and iphone apps.
7. Australian Publishing and Radio networks hold strong positions and with new CEO, admitting they were slow to digital age - he is rapidly changing this
8. Expect M&A into emerging digital space as they deploy some of the copious cashflows from old world assets to ensure their relevance in new media world...

Will post more with some research over next weeks.

Thoughts from others>>>

[POSSUM THE CAT]

Michael Woof Woof

[BIRMANBOY]

Dont you mean...Purrrrrrr?
Michael Woof Woof

[POSSUM THE CAT]

BIRMANBOY Michael asked for thoughts on the company not the noise I make when I am pleased

[BIRMANBOY]

Oh... so you think its a dog? I've made money on it before but must admit i didnt have any indepth knowledge other than the share price was cheap in a historical context and it gained enough for me to make 2500 on it in a 4 or 5 month period. For that reason alone its worth consideration (to me anyway).
BIRMANBOY Michael asked for thoughts on the company not the noise I make when I am pleased

[Nigel]

Half year results out. Not overly great reading, and not a strong outlook. Two digital acquisitions though, reflecting the need to get away from print media. Dividend retained despite loss.

[BIRMANBOY]

Yes but big write down on assets in Nz of 164 million didnt help. Share price is now Au 82 cents. so that reflects yield of 4.2% even if they dont do final dividend (dividend of 3.5cents AU coming in sept) . They would be unlikely not to do final dividend so lets be pessimistic and say 3.5 again so that would be 8.5% yield on current share price. Plus I believe strongly that this will recover strongly. Still believe this is a goer once report has been forgotten.
Half year results out. Not overly great reading, and not a strong outlook. Two digital acquisitions though, reflecting the need to get away from print media. Dividend retained despite loss.

[Newman]

Yes but big write down on assets in Nz of 164 million didnt help. Share price is now Au 82 cents. so that reflects yield of 4.2% even if they dont do final dividend (dividend of 3.5cents AU coming in sept) . They would be unlikely not to do final dividend so lets be pessimistic and say 3.5 again so that would be 8.5% yield on current share price. Plus I believe strongly that this will recover strongly. Still believe this is a goer once report has been forgotten.

The Directors must be very confident of an improved performance since July 1. On June 30 the company has a cash of $25m only. $24m is required for divident and bond interest payments this months.

Does anyone know if the 2nd HY result is usually better than the 1st HY for APN and similar business?