Originally Posted by
Ogg
Every deep value play looks like a value trap!
The market was WRONG, when the stock was trading at the $6 range from 2012-2016. I was one of the biggest skeptics on Sky, I knew it was over valued and was going down. I remember when Murdoch offloaded his holdings in 2013, I knew that was the right move. I wouldn't touch Sky with a 10 foot barge pole back then!
The market was RIGHT, when the stock dropped from 2016-2019. Reality finally caught up with Sky after so long. Ma and Pa investors got wiped out. Overseas hedge funds run by clueless baby boomers took the hit! I was surprised it took so long for it to drop, about fricken time.
However, the market is WRONG to price the stock at an EV of ~$250m, with the assumption that the businesses is obsolete and going bankrupt like Block Buster video. It isn't and that's the play. Markets overshoot and undershoot all the time. The $150m placement is the turning point for this stock. Once the registry tightens and results are released this month, they will show a turnaround story with a clean balance sheet, and this will look like the cheapest stock on the ASX/NZX.
Show me a better value play then this?