NZME - New Zealand Media & Entertainment

[percy]

The result was interesting.The slower decline in print was a surprise.
A credible result.
The huge fully imputated dividend looks sustainable.

[Beagle]

They are certainly making a much better go of it in terms of sustaining revenue and profit than SKY who offer a similar very high dividend yield.
I think SKY's cut of the dividend the other day from 15 cps to 12.5 cps is a sign of things to come for them and in the short term investors can at best hope for circa 25 cps fully imputed annually which at around $2.93 yesterday puts them on a gross yield in the short term of (25 / 0.72) / 293 = 11.85%. I think that yield comes under medium term pressure.

On the other hand it does appear NZME is in better shape to maintain their annual fully imputed dividends of 9.5 cps which puts them on a gross yield of (9.5 / 0.72) / 95 = 13.89%. There's clearly possible upside to that if they can win their appeal against the Commerce Commission ruling.
Disc: Own a modest stake in NZME for dividend income.

[percy]

They are certainly making a much better go of it in terms of sustaining revenue and profit than SKY who offer a similar very high dividend yield.
I think SKY's cut of the dividend the other day from 15 cps to 12.5 cps is a sign of things to come for them and in the short term investors can at best hope for circa 25 cps fully imputed annually which at around $2.93 yesterday puts them on a gross yield in the short term of (25 / 0.72) / 293 = 11.85%. I think that yield comes under medium term pressure.

On the other hand it does appear NZME is in better shape to maintain their annual fully imputed dividends of 9.5 cps which puts them on a gross yield of (9.5 / 0.72) / 95 = 13.89%. There's clearly possible upside to that if they can win their appeal against the Commerce Commission ruling.
Disc: Own a modest stake in NZME for dividend income.

I am not concerned about the merger with Fairfax.
Yes it may be good.
However, I think NZM will prosper without Fairfax.
And yes a very different kettle of fish to Sky TV.

[percy]

I sold out on Thursday and Friday,to fund further purchases of LOV,AQZ and ATL in Aussie.
These three companies' eps growth is higher than their PE ratio.
Peat's post #884 on EBOS thread, where he said he thought the NZ$ would weaken against the Aussie $, also influenced my decision.
Thanks Peat. I value your opinion on currency.

[Beagle]

Very quiet thread so time for a bump. I thought the result the other day was pretty resilient. Initiatives on the digital front will apparently include a paywall on N.Z. Herald this year, expansion of some of the content of their websites and radio is trucking along okay.

Pleased that they have maintained their fully imputed annual dividend rate at 9.5 cps which is a gross dividend of 9.5 / 0.72 = 13.194 cps which on a 78 cent SP = gross dividend yield of 16.92%, probably the NZX's highest, (and I would argue sustainable for the foreseeable future).

They could win their appeal and I think the market is presently saying there is no possibility whatsoever of that happening. Even if they don't I think initiatives on the digital, radio and other fronts should see the dividend sustainable going forward.

I maintain a modest stake for a dividend yield boost to my portfolio. Presently trades at 78 cents cum the final divvy of 6 cps.

[percy]

I sold out on Thursday and Friday,to fund further purchases of LOV,AQZ and ATL in Aussie.
These three companies' eps growth is higher than their PE ratio.
Peat's post #884 on EBOS thread, where he said he thought the NZ$ would weaken against the Aussie $, also influenced my decision.
Thanks Peat. I value your opinion on currency.

Brought back in today.
Recycling funds from the sale of a number of spec Aussie small cap stocks I recently sold.
So far I have brought RBC and SLI,neither of which are paying a divie,so NZM's fat divies will be welcome.

ps.Still holding the LOV,AQZ,and ATL in Aussie.

[Beagle]

Welcome back Percy. I have been quietly accumulating more at 77 and 78 cents myself since my last post in February. I guess if you're a dividend hound at heart its very hard to resist such a fabulous dividend yield
P.S. I recycled my Turners convertible note sales a while back into ATM at about $9, pretty happy with that decision

[percy]

I actually think there are good growth prospects for NZM,cross selling digital,print and radio.
I am pleased the Fairfax merger is to be renegotiated.I think it is in NZM's shareholders interest that no merger takes place.Why buy today something you don't reallt need and can buy it tomorrow under half price.?
ATM.Been a bit put off them since I did not buy them at 17 cps, when a friend told me to...lol.

[couta1]

Hey Percy, regarding ATM, sometimes eating some humble pie is the best medicine, can end up filling up you tummy nicely once it's gets past your mouth.

[percy]

Hey Percy, regarding ATM, sometimes eating some humble pie is the best medicine, can end up filling up you tummy nicely once it's gets past your mouth.

Director at the time Cliff Cooke was on my never again list.
Also I have never understood A2 as half the cows in NZ are either A1 or A2.?
So what would stop Percy Tasmanian Dairy products offering a choice of Percy Go and Percy Go-plus.or Guernsey and Jersey.
Customers would soon spot the difference,as one would be A1 while the other would be A2.
Owning a great number of farms it would be a piece of cake separating the herds after testing whether they were A1 or A2.
The hype seems a lot like water beds to me.