SKT Sky Network Television Limited.

[steveb]

Well done SKY for coming to the party. From the 25th March, they are giving me 3 months of the movie channel for free. That is a good move because i was nearly gone. So I will hang around a bit longer.
Not surprised they took this move but a little perplexed it took this long.

Makes you wonder if they are not missing a trick by not giving open access to all channels for 3 months.After the 3 month period they could well find that their customers would want to keep the full coverage type of plan.

[ratkin]

Covid-19 has had a big impact on live sport. As we have been working through the changes to the Sky Sport schedule, we’ve been hearing from many of you about what you’d like to see us do. The overwhelming request is for more entertainment while we all wait for live sport to resume.
So, we’ve added 4 complimentary Sky Box Office Movies on demand per month to your subscription for the next three months.

The other half is happy, has some new movies to watch

[blackcap]

Interesting that you get a different deal Ratkin. I get the following:

So, we’ve added complimentary Sky Movies to your subscription for the next three months. There’s a great range of movies to keep you entertained. This will be available to view by Wednesday 25 March if not before. A change like this takes us a little while to roll out through our system!

[Entrep]

Where are you getting these messages?

[blackcap]

Where are you getting these messages?

Email.........

[mistaTea]

Make sure you keep some powder dry for the inevitable capital raise. 1:1 at 15 cents to raise $60m is not out of the realms of possibilities.

Given Martin Stewart was lamenting the low SP a few weeks back when it was above 65c...it would seem absolutely incredible to existing shareholders if a rights offer was contemplated now.

There will be many shareholders who are unable to participate in the offer. Some of these shareholders would have paid over $2/share.

To have their shareholding diluted by 50% for the sake of raising $60M would be criminal.

[blackcap]

Given Martin Stewart was lamenting the low SP a few weeks back when it was above 65c...it would seem absolutely incredible to existing shareholders if a rights offer was contemplated now.

There will be many shareholders who are unable to participate in the offer. Some of these shareholders would have paid over $2/share.

To have their shareholding diluted by 50% for the sake of raising $60M would be criminal.

You may call it criminal. But these times are unprecedented. What is the alternative? I cannot see anything but a rights issue and with the SP where it is currently it might have to be a 1:1 at 15 cents. No one is going to lend them any money in the current state. (I hope to be proven wrong)

[mistaTea]

You may call it criminal. But these times are unprecedented. What is the alternative? I cannot see anything but a rights issue and with the SP where it is currently it might have to be a 1:1 at 15 cents. No one is going to lend them any money in the current state. (I hope to be proven wrong)

I suppose it will depend on a number of factors.

The bonds are due in 12 months - so they don't have to do anything rash. If a capital raise is really the only possible way of getting their hands on more money, then they should at least wait until the end of the year.

Coronavirus should (hopefully!) be well and truly over by then....plus if their next annual report shows strong progress in streaming (their new streaming products will have been released...) then we might expect a bump in SP.

If the SP has risen significantly from where it is then it might be a no brainer to do a capital raise. If it is still sitting at where it is now due to ongoing issues with the virus and/or poor performance by the company...and they have truly exhausted all other options (including actively pursuing a buyer...) then I guess it is something we would all have to live with.

But I would be very disappointed if they go through with pushing ahead with a capital raise within the next 6 months given where the SP sits.

Do you have a view on what timings might be if they go down this path?

[moimoi]

Mista,

In my view sometimes one needs to look beyond what the company is saying, particularly if invested in the company.

A week or two ago you expressed surprise that no one had made an offer to take SKY over.

The value of the equity in SKY has fallen from $6 at the start of 2015 to 26 cents today.

Directors, neither past nor present, have been buying and there hasn’t exactly been a flood of folk trying to take the company private in that timeframe. Both are telling imo.

Poster Ogg told us a week ago the $100m bond wasn’t a problem.

IMO In the current environment that bond is quite possibly unable to be refinanced. (At least not in full)

The recent accelerating decline in the share price, (in spite of a reasonably logical view that if folk are quarantined at home for 14 days then you’d have to figure they would watch a bit of telly) coupled with increasing volume, suggesting knowledgeable and informed institutional investors, simply does not bode well.

They can’t leave the Bond refinancing until the end of the year. No board can sit there in December with a $100m debt repayable in March having not done anything about it.

A rights issue, assuming they could even get one away at this depressed level, would effectively mean many shareholders are going to be diluted out of existence. The catastrophic decline in the share price over such a long period (and it’s been one way traffic for a long time) is likely to mean many existing holders wouldn’t contribute funds to a cap raise.

There was a very well regarded poster on here about a decade ago. I periodically review one of his / her posts which is below.

(1)Don't buy stocks that are in a downtrend.
(2) Don't buy without first setting a point at which you will accept that you have made a mistake.
(3) When/if this point is hit, SELL. Immediately. You can always buy back when/if the trend reverses.
(4) Never add to a losing position. Don't average down. EVER.
(5) Be very careful not to get caught up in other peoples enthusiasm for a particular stock.
(6) Meticulous calculations of a stocks "worth" are meaningless if the market disagrees with you.
(7) Remember, if your opinion is at variance with market sentiment, YOU are wrong, not the market!

All the best with your investment.
GLTA.

[trackers]

Mista,

In my view sometimes one needs to look beyond what the company is saying, particularly if invested in the company.

A week or two ago you expressed surprise that no one had made an offer to take SKY over.

The value of the equity in SKY has fallen from $6 at the start of 2015 to 26 cents today.

Directors, neither past nor present, have been buying and there hasn’t exactly been a flood of folk trying to take the company private in that timeframe. Both are telling imo.

Poster Ogg told us a week ago the $100m bond wasn’t a problem.

IMO In the current environment that bond is quite possibly unable to be refinanced. (At least not in full)

The recent accelerating decline in the share price, (in spite of a reasonably logical view that if folk are quarantined at home for 14 days then you’d have to figure they would watch a bit of telly) coupled with increasing volume, suggesting knowledgeable and informed institutional investors, simply does not bode well.

They can’t leave the Bond refinancing until the end of the year. No board can sit there in December with a $100m debt repayable in March having not done anything about it.

A rights issue, assuming they could even get one away at this depressed level, would effectively mean many shareholders are going to be diluted out of existence. The catastrophic decline in the share price over such a long period (and it’s been one way traffic for a long time) is likely to mean many existing holders wouldn’t contribute funds to a cap raise.

There was a very well regarded poster on here about a decade ago. I periodically review one of his / her posts which is below.

(1)Don't buy stocks that are in a downtrend.
(2) Don't buy without first setting a point at which you will accept that you have made a mistake.
(3) When/if this point is hit, SELL. Immediately. You can always buy back when/if the trend reverses.
(4) Never add to a losing position. Don't average down. EVER.
(5) Be very careful not to get caught up in other peoples enthusiasm for a particular stock.
(6) Meticulous calculations of a stocks "worth" are meaningless if the market disagrees with you.
(7) Remember, if your opinion is at variance with market sentiment, YOU are wrong, not the market!

All the best with your investment.
GLTA.

Good post and great advice. Are you talking about Phaedrus?