SKT Sky Network Television Limited.

[JohnnyTheHorse]

Zero red flags on the technicals.

We are yet to consolidate on the daily timeframe (breaking 20.5c). Sideways action for a few more days would be healthy consolidation, ideally with us touching 20c. Volume trends currently indicate no significant institutional selling or buying, rather we are just having a breather. This supports a higher probability case for the formation of a daily bull flag and resumption of the uptrend.

As Balance mentioned, it is likely we have a ~20c floor given Osmium's accumulation.

[Quantitative Easing]

Is Osmium partners the greatest hedge fund in America or what? These guys might be the next Soros and Druckenmillers...

[sb9]

Looks like big battle lines are drawn going current trading depth..

[mistaTea]

Clearly Osmium want to lock in a lot more shares around the 20c mark. Smart to slow down the buying to keep the price cheap as they continue to build patiently.

And they have time, Sky isn't going anywhere and the SP won't escalate significantly unless they ramp up their buying (or someone else following them decides to jump on the bandwagon).

I also don't want the price to go too high right now as it would jeapordise buybacks.

If it goes higher than $2.50/share post consolidation then doing a buyback starts to be questionable. Certainly at $3/share.

Which means they then have to look at an alternative way to return the capital...

If they can do a meaningful buyback and then reinstate a good dividend policy in Feb, I can see the price going north of $3.50/Share. Even $4 maybe.

[Balance]

Yup - suspect Osmium will back off now and let the traders psyche each other out.

When they get tired of directionless trading and start bailing out is when Osmium will make its move and buy a few more.

[mistaTea]

Buy backs are off bro:

I would contrast this strategy to stock buybacks, where a cash-rich company simply uses its money to buy back its own shares, inflating the share price, a tactic often employed by the finance sector to manage capital it considers ''excess''. As we have seen repeatedly over the past two decades, this is almost always reversed by capital raisings, at much lower prices, during the inevitable economic slowdowns. https://www.chrislee.co.nz/taking-stock

It's better to take that $200m and buy Orcon.

If Sky can get to $3 maybe they will take some script.

Sky needs to return to growth and then pay a small dividnend. This will attract the bigger investment/kiwi saver funds who will return and start buying the stock at higher and higher prices to chase yield.

I don't disagree with you - as I have said for months now, my strong preference is for them to use the cash to make some kind of acquisition...

However they have given no indication that they are able to pull any favourable M&A deals together.

Maybe they will pleasantly surprise us!

But if they can't do a deal, then buybacks.

[LaserEyeKiwi]

Yup - suspect Osmium will back off now and let the traders psyche each other out.

When they get tired of directionless trading and start bailing out is when Osmium will make its move and buy a few more.

the disclosure this morning was for shares purchased between 1st-3rd, so they conceivably haven’t been buying this week at all.

[Balance]

the disclosure this morning was for shares purchased between 1st-3rd, so they conceivably haven’t been buying this week at all.

Yup … hence my comment that support level is at 20c which is where they stopped buying last.

Could be a little while before we see them come back and buy more?

[Vitamin_A]

I don't think SKT will buy Orcon. It does not fit with their infrastructure-lite model they have been pushing. I'm hoping for a return of capital in some way, shape or form to shareholders.

[mistaTea]

I don't think SKT will buy Orcon. It does not fit with their infrastructure-lite model they have been pushing. I'm hoping for a return of capital in some way, shape or form to shareholders.

As much as I like the idea of Sky jumping feet first into telco with some kind of a deal with Vocus and/or 2D...I don't think it will happen either.

There has been no indication that Sky have any appetite to get into telco beyond their current wholesale deal.

The only commentary we have had from Philip Bowman has been to do with capital return options and dividend resumption.

Which is fine, because these moves should easily push the SP above $3/share. Depending on what kind of dividend they reinstate, $4/share is not too crazy to imagine either.