SKT Sky Network Television Limited.

[mistaTea]

https://www.nzherald.co.nz/business/...ectid=12308036

Agree that the low price is divorced from the reality of where the business is currently and how earnings are likely to play out over the next few years.

I did a reverse DCF earlier to get a sense of what would have to happen...from where they are currently...in order for a market cap of $265.6M to be a fair value.

It can be shown that underying Owner Earnings would need to drop by 35% per annum every year from 2020 - 2030 for the current market cap to make any sense.

Is that likely to happen? No, not at all.

[RGR367]

!!!! Would you like to re-phrase that, RGR?

My speculative money is on buy at 60 cents yesterday and would try to get more if it goes down.

disc: never been a holder of this stock and not a subscriber too

[Entrep]

From Craigs:

even after the catastrophic fall in share price SKT is still trading in-line with its 5 year average historical PE of c10x at Gardiners revised Target Price of 59cps. Catching a falling knife is difficult and Gardiner’s recommendation is Hold, stay on the side-lines for now.

[Preston]

From Craigs:

I also remember hearing Craig’s telling people publicly that of all the retirement stocks, they only recommended Ryman and not the others. So I bought MetLife because like everyone else here it looked actually like it had a lot of upside. That was about 4.30.
Not saying skt will be as straight forward, but on the balance of it they are doing what they said they’d do and they have said there is more pain to come before the investments will deliver. Fellet drove this company into the deep hole it is in and it will take some skillful scrambling to get out. It can be done...but we shall see.

[mistaTea]

Not saying skt will be as straight forward, but on the balance of it they are doing what they said they’d do and they have said there is more pain to come before the investments will deliver. Fellet drove this company into the deep hole it is in and it will take some skillful scrambling to get out. It can be done...but we shall see.

Agreed 100%.

Sky TV are definitely doing the right thing - there are no guarantees in this life, nor are there guarantees in terms of how much the significant investment will pay off, but what is the alternative? They have a large customer base, and still generate significant cashflows...and I personally think the odds are in their favour for transitioning the business and building a sustainable future.

They have responded to all of the criticisms the 'experts' have dished out at them - and done so very quickly.

I do feel bad for the workers at Sky. They are doing an incredible job, and working really long hours to get these projects over the line - yet the company still gets a huge amount of flak. Hopefully only short term noise, and I hope they are celebrating their successes anyway.

[mistaTea]

https://home.nzcity.co.nz/news/article.aspx?id=306559

"Its coverage of last year's Rugby World Cup was marred by technical issues.

But Spark's reporting a four percent revenue increase for 2019 ... to 1.82 billion dollars.

CEO Jolie Hodson says Spark Sport is a part of that - albeit small.

She says her focus is investing in the platform and consumer propositions... then looking at other content rights or partnerships.

Spark says mobile was its stand-out performer in 2019."

Do we know anyone in NZ that might make a good partner?

[tga_trader]

Do we know anyone in NZ that might make a good partner?

Spark could make a tidy side business out of developing products to compete with SKY, and then sell said product to SKY. I wonder if there was a clause in the sale of Lightbox that Spark wouldn't enter the TV/movie streaming market again.

[mistaTea]

See Vocus has now confirmed that the NZ Business is likely to split from the Aussie parent. Not sure if that means they will IPO.

Sky have said they are looking at broadband. They could get a wholesale deal with Orcon - or maybe some other arrangement.

Who knows - but when you see Spark drop a bunch of wedge on Sky Sport...lose money on the endeavour and yet still lift earnings overall it does make you think.

And Martin Stewart is right that they Sky need to keep finding new ways to diversify revenue.

I think 2020 is going to be a big year for telco and media

[Preston]

Might be clutching at straws a little here. Not a heck of a lot else going on. Some divergence on the chart but not a lot on the indicator. One to watch

Screen Shot 2020-02-19 at 5.35.23 PM.jpg

[airedale]

I think that a monthly chart going back a few years would be a good indicator for a genuine break out on SKT.