SKT Sky Network Television Limited.

[Balance]

An interesting snippet from Craigs' annual investor day in Auckland - Sky TV included in the lineup of companies invited to present so presumably one of the 6 companies invited to present which meet their 11 characteristics of the best stocks to invest in :

https://www.nzherald.co.nz/business/...2SFMNYV7JWPPE/
paywalled

Craigs Investment Partners held its annual investor day at the Cordis, inviting business leaders to speak about what they're doing and how their companies are going.

The lineup included

Mainfreight managing director Don Braid,

Fisher & Paykel Healthcare managing director Lewis Gradon,

Fletcher Building chief financial officer Bevan McKenzie,

and

Goodman Property chief executive John Dakin,

Sky TV chief executive Sophie Moloney,

Craig's head of private wealth and research Mark Lister and

Serko chief executive Darrin Grafton.

[Vitamin_A]

Sky's not trading ex the capital distribution though.

[airedale]

Perhaps there is a Craigs client on this page who can share their thoughts.

[Balance]

Perhaps there is a Craigs client on this page who can share their thoughts.

The critical point to note is that Craig manages billion of dollars in clients’ portfolios and only stocks which have buy recommendations can be included in the portfolios.

So SKT can count upon ongoing support from Craig until such time as it is not recommended.

[Entrep]

The critical point to note is that Craig manages billion of dollars in clients’ portfolios and only stocks which have buy recommendations can be included in the portfolios.

So SKT can count upon ongoing support from Craig until such time as it is not recommended.

Craigs shilled NZK massively and look at how that has done.

[airedale]

Are Craigs still recommending NZK?

Craigs shilled NZK massively and look at how that has done.

[Entrep]

Last I checked but that was several months ago TBH. They had a target of $1.xx if I recall correctly, then of course did the raise at 20c or whatever it was... lol

[mistaTea]

It has taken me ~6 weeks, but I have just completed selling the bulk of my Sky shares.

I have sold 97% of the shares I owned, and now hold a very modest amount of shares. I only hold ~$25K worth of shares now - enough to keep me interested in how events unfold for Sky over time, but not so much as to be particularly worried either. Also consider that at the end of November, Sky will return $4K of that to me in cold hard cash.

Why have I sold out?

Well, it is my view that the current market price for Sky is more than fair. Probably overvalued actually.

Market cap = $410M. Once you subtract the $70M cash payment, Sky's operations are valued at $340M.

Even if we assume that Sky pay the top end dividend guidance of $23M next year, a $340M market cap would be a 6.8% yield. When you consider that Spark is currently priced at a 6.3% yield, that is truly astounding.

I have no idea what the Sky SP will do over the next year, but I do feel that the current price is more than fair given:

1. Earnings outlook beyond a year or so is very murky
2. Big renewal deals are coming up soon - rugby and HBO. Winning them will come at a big price.
3. Broadband uptake is slow
4. STB rollout is still yet to happen. The rest of the cash in the bank will be spent on this new box.
5. Now that it has taken Sky so long to launch a new box, the uptake will be less than if they did this a few years back given Smart TV's are pretty damn good now. It is still an important part of their tech roadmap, but will have less impact now than it would have in the past.

When all is washed up, on paper I am probably down about $40K on this investment. However, all is not lost:

1. By hanging on to 10K shares I have not actually realised a loss yet. I get $4K in November, which reduces my loss to $36K. Future dividends and possible upward movement of the SP in the future (if a takeover ever eventuated, for example) could well mean that I get all my momey back in the future.
2. I still get to own a tiny slice of a business I am interested in, but can 'set and forget' now.
3. The learnings from owning Sky over the past few years have been absolutely invaluable to me.

Murphy's Law dicated that next week a takeover offer will present. That's ok if it does - I don't have a crystal ball, and holding while hoping a greater fool will come along to buy your shares is hardly investing. I have sold my shares, and feel pretty damn good about it.

Good luck to everyone still hanging in there. It will be interesting to see how this play out for Sky over the next few years!

[JohnnyTheHorse]

You might be late getting that SSH out after dropping below 5%. Better get onto that mate.

[Old mate]

I struggle to find stuff to watch on sky now. Still enjoy the rugby but watch less of it than I used to so I might pull the pin on subscription and try something else. Based on this I sold out of shares recently also.Could be tough times ahead for sky if economy stays under the pump.