SKT Sky Network Television Limited.

[Balance]

The stage is set :

MinterEllisonRuddWatts is predicting another busy year, singling out the healthcare, technology and financial sectors as those which will remain in the spotlight, as well as the food and beverage industry.

https://www.nzherald.co.nz/business/...PG4CT7LPN3OH4/

There's been a lot of corporate activity in recent months, and it feels like we might have caught M&A (mergers and acquisitions) fever.

Law firm MinterEllisonRuddWatts recently released its fifth annual M&A Forecast report, which notes that 2021 was indeed the biggest year on record for such activity in New Zealand.

One high profile announcement has come from the Government itself recently, with the proposed creation of a new public media entity incorporating Radio New Zealand and TVNZ.

There's also the merger of 2degrees and Orcon, which could see the formation of New Zealand's third-largest telecommunications company.
paywalled

[mistaTea]

The stage is set :

MinterEllisonRuddWatts is predicting another busy year, singling out the healthcare, technology and financial sectors as those which will remain in the spotlight, as well as the food and beverage industry.

https://www.nzherald.co.nz/business/...PG4CT7LPN3OH4/

There's been a lot of corporate activity in recent months, and it feels like we might have caught M&A (mergers and acquisitions) fever.

Law firm MinterEllisonRuddWatts recently released its fifth annual M&A Forecast report, which notes that 2021 was indeed the biggest year on record for such activity in New Zealand.

One high profile announcement has come from the Government itself recently, with the proposed creation of a new public media entity incorporating Radio New Zealand and TVNZ.

There's also the merger of 2degrees and Orcon, which could see the formation of New Zealand's third-largest telecommunications company.
paywalled

Given the low SP and strong balance sheet…I suspect private equity will indeed take sky out long before she has any opportunity to explore deals with the likes of 2D or NZM.

[Jay]

Just noticed add now in the F1 coverage, until recently, when they went to a add break it just left a screen saying "...be back shortly while SkyUK were in an add break..." or something similar, - trying to boost their revenues from the sports coverage?? At least you can skip thru them if not watching live!

[mistaTea]

Just incredible that Sky's Enterprise Value right now is still only around $20M more than NZME...

Hence why, despite my lofty ideals of what Sky TV should become - I suspect PE will make an offer that The Board would be compelled to present to shareholders long before then.

Not my ideal outcome, but probably realistic given where things sit.

Sure, we would get a quick capital gain on our shares...but ultimately lose out on participating in the long term prospects.

[mikelee]

yes, agree. I'm really looking forward to the annual dividend to supplement my low wages...lol

[mistaTea]

A bit of a write up on Sky institutional ownership:

https://simplywall.st/stocks/nz/medi...-institutional


Between instos and hedge funds, ~80% of Sky shares are tied up.

Simply Wallstreet put sky's fair value at $4.35/share (Market cap of ~$760M). And that is based on a FCF profile that assumes Sky just stays as it is (no additional services added like Sky Mobile, or any other tie ups with complimentary services).

[Balance]

A bit of a write up on Sky institutional ownership:

https://simplywall.st/stocks/nz/medi...-institutional


Between instos and hedge funds, ~80% of Sky shares are tied up.

Simply Wallstreet put sky's fair value at $4.35/share (Market cap of ~$760M). And that is based on a FCF profile that assumes Sky just stays as it is (no additional services added like Sky Mobile, or any other tie ups with complimentary services).

Was a bit of a selldown yesterday by an insto but what was interesting is that the last of the line of stock was crossed to the buyer at $2.75 after market close - so it looks like $2.75 to $2.80 as a trading range for instos to pick up stock.

Could be the last opportunity to get set before SKT heads towards $3.50?

[mistaTea]

Could be the last opportunity to get set before SKT heads towards $3.50?

yes I think so.

We seem to have been generally trending up for some time now.

The next catalyst will be whatever they announce in June in terms of new growth projects and capital management.

This may be the last opportunity for cheap shares, however there is no reason to really expect the price to increase significantly from the $2.75-$2.80 range until closer to June I don't think. So perhaps another couple of months to patiently accumulate.

And this all assumes a good news story in June! If they drop the ball then $2.75 might look expensive to short term investors if the price drops.

Though it is difficult to imagine a calamity for Sky between now and June given the solid earning profile and Smaug-like hoard of gold in the war chest.

[snigmac]

I think the share price will build to $3 and upto $3.20 before June. In my opinion, the current trend would suggest this (and it is reasonable to expect this). We have had a string of positive announcements, the company is delivering (and as a fail safe, excess funds may be provided to shareholders)... What more do you want that is within the company's power?

I know I am having difficulty with being patient. I have alot of faith that the company has changed... But I trust we are on or past the positive inflection point and the S/P will continue to climb.

[mistaTea]

I think the share price will build to $3 and upto $3.20 before June. In my opinion, the current trend would suggest this (and it is reasonable to expect this). We have had a string of positive announcements, the company is delivering (and as a fail safe, excess funds may be provided to shareholders)... What more do you want that is within the company's power?

I know I am having difficulty with being patient. I have alot of faith that the company has changed... But I trust we are on or past the positive inflection point and the S/P will continue to climb.

Amen, brother.