SKT Sky Network Television Limited.

**mistaTea** · 24-03-2022, 11:30 AM

Originally Posted by Balance

And the takeover and M&A scenario which will play out - sooner or later.

I was reflecting more on the general negative sentiment from the likes of Arie Dekker etc in the NBR article...

A few things stand out.

First, it is baffling that they continue to refuse to give Sky much credit for incredible progress. Sky currently have ~1M customer relationships which is far more than they ever had during their monopoly days. That is astounding given there is so much more competition these days and highlights that there is a huge demand for Sky TV's services (particularly streaming which is seeing double digit growth year on year). Then there is the fact that Sky continue to be able to sign deals with premium content owners. So clearly there is a demand from the owners of content to use Sky's services rather than launch their own OTT service in an already crowded market. At any point these guys could not renew their deal with Sky and enter the market with their own app - but the vast majority don't (and never will imo).
Revenue is increasing, Sky has launched complimentary services (broadband and there is scope for mobile in the future). Earnings and cash flows seem to have stabilised despite inflation in rights costs.

Second, they keep saying how doomed Sky is as a content aggregator (a sentiment I clearly do not share) but then when it is suggested that Sky do something big to secure their future by branching out into something like a merger with a telco, then they immediately poo-poo the idea with very questionable rationale. So according to the Arie's of the world Sky TV is doomed to extinction in its current state but shouldn't be able to transform into a business that owns hard telco assets.

So what should Sky do instead then? Well, Arie and the others never state what the solution is. I guess they think there is no solution and Sky just needs to go bankrupt even though all the evidence we observe does not support this conclusion.

It will be very hard for Sky to get a fair valuation on the public markets given the state of sentiment. Ultimately, I do believe Sky needs to continue on the path they are on (in terms of making improvements and progress) with a view to sell the business. That sale could be to someone like 2D or it could be to Private Equity. Either way, I think Sky will have a better time focussing on the business as a private enterprise.

**sb9** · 24-03-2022, 01:42 PM

Bolly bands getting squeezed for a break out to $3....

**mistaTea** · 24-03-2022, 01:46 PM

Originally Posted by sb9

Bolly bands getting squeezed for a break out to $3....

Stop saying "Sky" and "three dollars" in the same sentence.

You know it makes me horny.

**sb9** · 24-03-2022, 02:31 PM

Originally Posted by mistaTea

Stop saying "Sky" and "three dollars" in the same sentence.

You know it makes me horny.

Haha, we're surely on the move now, trading depth fully loaded...

**snigmac** · 24-03-2022, 02:34 PM

Sky will get to $3.2 by June 2022.

**mistaTea** · 24-03-2022, 02:45 PM

Originally Posted by snigmac

Sky will get to $3.2 by June 2022.

I need Stallion to verify this...

**snigmac** · 24-03-2022, 03:14 PM

I'll add that, in my opinion Sky will get to $3.2 by June, without a merger of acquisition

**thebusinessman** · 24-03-2022, 03:16 PM

$2.80 as of now, getting there!

**JohnnyTheHorse** · 24-03-2022, 05:44 PM

Originally Posted by mistaTea

I need Stallion to verify this...

I will start off by saying that technical analysis isn't overly reliable at predicting exactly how far a move will go, especially when there is very little resistance. TA is however reliable (when used correctly) at identifying higher probability and good risk/reward setups, then helping time an exit.

Assuming we have a monthly bullflag on our hands here, then using the measure rule we would expect to $3.40-$3.50 as a price target before further monthly consolidation. I also look to previous price support/resistance areas to look for consolidation. There is no notable resistance up until the $3.80-$4 area as the price fell through there so quickly. This does not mean a new resistance won't be formed in this area - maybe a psychological level like $3.00 or $3.50.

Ultimately though I am not trading this stock and have just tucked away a maximum portfolio position. I only check in on the chart to ensure there are no TA red flags. Only thing required to make money here is patience.