Originally Posted by
Baa_Baa
Yes you could say that. There is a wealth of opinion on this thread, it would be worthwhile scrolling back a dozen or more pages and reading the story of SKT's woes.
Regardless of all that wisdom, consider that the chart I posted is Monthly 'closing price'. SKT has been in a severe SP down trend for almost three years, it is way below the 20 months moving average (that is an approximation of a 400 day moving average), and is now well below the last gasp 78.6% fibonacci from the GFC lows. It is a truely very seriously ugly SP chart.
JMHO, that SKT has yet to re-invent itself, while its content sourcing is still very capable, it's content distribution is woeful and as long as subscribers (who are imo being ripped off) are declining, one can only expect the FA of the company to wane also.
Eventually if they don't fix the content distribution (increasing eyeballs, wallets and revenue for the whole value chain), the content sources will seek other distributors. SKT are seriously exposed to content distribution disruption as well, as content sources can mount their own online content distribution easily at relatively low costs, cutting out the intermediary (Sky).
SKT is farming an apathetic legacy subscriber base, which is fine as long as they are growing 'online' subscribers faster than they are losing legacy 'set top box' subscribers, but they're not. At this stage it looks like SKT are broken and in a low glide to oblivion.
Even Skodafone is a dead duck, even though it is less than obvious how a long term sub-distributor (Vodafone) would have made that much difference to Sky revenues just because the ownership model changed.
There is nothing in the FA or the TA now that would encourage me to go anywhere near buying (or holding) SKT.
Just be patient, they might sort it out some day even if it's a few years away. They still have a very large legacy subscriber base, though their challenge is to retain it and convert it progressively, without sustained losses, to online distribution.
If or when SKT demonstrate a reversal of fortunes, the market will recognise that and respond with an up turn in the SP. Until then, there are better (and worse) companies to invest in and one should expect SKT to stay in a sustained SP down trend.
Until that happens, stand back, enjoy the show and learn as we watch a once proud company either destroy itself, or reinvent itself. There is no middle ground.