NZME - New Zealand Media & Entertainment

[couta1]

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.

Won't clutter this thread by going into detail by answering those questions as they have been answered on the ATM thread, needless to say, they have first mover advantage, massive momentum and to date have continued to over deliver.

[percy]

A schocker.

[Benny1]

A schocker.

Yep, thought if they pulled up OK I would add to my reasonably small holding.... That's not going to happen on that result..
Hmmm...ATL had a good result Percy.. Maybe get back on board those campervans!

[percy]

Yep, thought if they pulled up OK I would add to my reasonably small holding.... That's not going to happen on that result..
Hmmm...ATL had a good result Percy.. Maybe get back on board those campervans!

ATL was an excellent result with a very strong outlook.
However the huge increase in debt,and the size of it, is a very real concern.

[Beagle]

Didn't have much time this morning but to my mind based on the presentation the company didn't clearly articulate how they are going to turn around this shock fall in earnings.
I get it that they are investing in digital platforms for the future but does that come at the expense of halved profits for the foreseeable future and reduced dividends ?
Reduction in dividend from 3 cps to 2 cps suggests that dividends will be lower going forward and that we might see a similar one third cut in the usual whopping final dividend.
I only bought a very modest stake for its yield and was pleased to be able to extricate myself from it this morning at 79 cents.

[Brain]

Always best to invest in companies with tailwinds.

[percy]

Didn't have much time this morning but to my mind based on the presentation the company didn't clearly articulate how they are going to turn around this shock fall in earnings.
I get it that they are investing in digital platforms for the future but does that come at the expense of halved profits for the foreseeable future and reduced dividends ?
Reduction in dividend from 3 cps to 2 cps suggests that dividends will be lower going forward and that we might see a similar one third cut in the usual whopping final dividend.
I only bought a very modest stake for its yield and was pleased to be able to extricate myself from it this morning at 79 cents.

You did well....

[Beagle]

You did well....

Thanks Percy. Only had a brief read of presentation this morning, (more interested in AIR), hopefully shoot first and ask questions later was the right move.

[percy]

I too find it very difficult to make "serious" decisions with so many announcements coming through at this time.
The sell decisions however, must be made straight away,as you did this morning,before buyers run for the hills.
First read of them is usually correct.

ps.I had them,sold them, and have them on a watch list to buy back in.Was thinking 70 cents to 75 cents when they were trading at 84 cents.About to take them off the watch list as I now have no idea what they are worth.,

[James108]

I have been interested in this business for a while however wasnt aware of it when they were trading at very attractive prices so never pulled the trigger. I look at NZME as two groups, the declining part (print) and everything else (radio, digital). However they are interconnected.

So what is the value of the declining part of the business? Questions we have to ask, is NZherald the dominant masthead in NZ? will print dissapear? how long until print becomes uneconomical? How long after it becomes uneconomical will shareholders be paying for it before it gets canned? What will happen to journalism and where will people get their news if print dies?

One thing I firmly believe is that journalism in NZ will survive and therefore the 'News' part of NZME is worth something.

So in what form will this happen? One possible outcome, smaller papers fall by the wayside and views/subscribers get aggregated to the larger papers (i.e. NZherald, stuff). When I had a girlfriend in the Waikato I noticed the Waikato Times is absolutely trash, I can only imagine the smaller papers are worse.

If I were to try and value the business I think the conservative (from valuation perspective) is print declines and the digital gets a corresponding increase (albeit at much smaller revenue). Value of radio can be added seperately, digital is interdependent on print. If the SP dropped to a price where radio + digital alone justifies the SP, it would be a buy from me and make the valuation much simpler.

Sorry for rambling post, sometimes I find it useful to get my thoughts down on paper, I would be interested in hearing peoples opinion on the dominant (most popular not best journalism) source of news in NZ (i.e. is stuff better than nzherald.co.nz?).