"The stock is probably for speculative investors only at this stage," he says.
I think that pretty much sums up people like Ogg. ;)
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DJ Bearish Views on Sky TV Still Dominant -- Market Talk
11 Sep 2020 14:05:06
0405 GMT - Bearish views appear to remain in the ascendant for Sky Television despite its upgraded FY 2021 guidance. Forsyth Barr says the New Zealand company is still struggling to realize a "meaningful offset" for declining satellite TV revenue, noting that streaming grew but largely due to acquisitions. An increase in the cost of rugby broadcast rights is also a headwind, it says. Credit Suisse says Sky's new streaming services might cannibalize its legacy business. Uncertainty will remain until investors have increased confidence in Sky's ability to stabilize during a "very challenging transition." Shares are down 60% this year at NZ$0.15 versus S&P Capital IQ's median price target from six analysts of NZ$0.24.
(END) Dow Jones Newswires
September 11, 2020 00:05 ET (04:05 GMT)
This is Ogg describing the rest of us on the forum...
https://youtu.be/4suc3j7jSkw
Capital IQ's median price target from six analysts of NZ$0.24.
median
[ mee-dee-uhn ]
noun
Arithmetic, Statistics. the middle number in a given sequence of numbers, taken as the average of the two middle numbers when the sequence has an even number of numbers:4 is the median of 1, 3, 4, 8, 9.
I think the negativity around how the average spend per streaming user (ARPSU) being ~$20 is terrible because it is so much lower than satellite ARPU ($82) is unwarranted. It only considers part of the picture anyway.
The ARPSU of $20 only represents a fraction of Sky's available content.
Once Sky begins selling more of their content via Sky GO (as a standalone product) or add-ons/upgrades to NEON you will see the ARPSU increase.
If all of the current satellite customers converted to a SkyGO standalone product their ARPU would like be around $60.
Given the number of those customers this would significantly lift the ARPSU.