SKT Sky Network Television Limited.

[blackcap]

Sky don't need a life line.

I averaged up today. Holding 100k shares

That is either brave or stupid Hope it works out well for you. Are you not concerned about the debt being at 55%?

[Ogg]

That is either brave or stupid Hope it works out well for you. Are you not concerned about the debt being at 55%?

Not really.

The maturity date is 1 year from now. That's an eternity. The stock was well north of $1 a year ago. It's also likely that this virus will pass by then.

The yield on the bonds is bazaar but it's low volume.

Even if they have to do a rights issue, I don't think it will be that bad for investors who are getting in at these levels. Let's say it's at 10c, I would fully participate and average down. Sky would then be in even better shape long term.

People aren't going to be canceling their Sky subscription. That opposite would be true. More people are watching TV now in this lock down. Sport will return one day. Sky did have problems, but look at the share price over 5 years! It's been smashed. Way over sold. Looks ripe for a take over but if that doesn't happen dividends will return in the medium term.

Risky yes, but you need to take some risk to make decent money in this market.

[Ogg]

http://nzx-prod-s7fsd7f98s.s3-websit...256/320330.pdf

Black Crane just bought 18m shares in the last 3 weeks. Wonder what they're up to?

[youngatheart]

I bought 47,000 shares this week too OGG. Let's see how this pans out

[mistaTea]

http://nzx-prod-s7fsd7f98s.s3-websit...256/320330.pdf

Black Crane just bought 18m shares in the last 3 weeks. Wonder what they're up to?

Looks to me like Black Crane are the mysterios 'Beneficial Owner' that was declared in the UBS announcement?

UBS London declared purchases of 3.3M shares on 30 March and 7M shares on 31 March.

Exactly the same as Black Crane's announcement. So he must have purchased those shares via a brokerage facility his fund has with UBS I assume.

Black Crane has been buying in when the stock was around 70c and doubled down when the price got crazy-low recently. From what I can see the founder is ex-UBS and a big Ben Graham/Warren Buffett fan. So he clearly formed the view that 70c represented a significant discount to the companies intrinsic value. I share his sentiment.

Good on them, I think they are going to make a lot of money on this investment.

[Ogg]

Looks to me like Black Crane are the mysterios 'Beneficial Owner' that was declared in the UBS announcement?

UBS London declared purchases of 3.3M shares on 30 March and 7M shares on 31 March.

Exactly the same as Black Crane's announcement. So he must have purchased those shares via a brokerage facility his fund has with UBS I assume.

Black Crane has been buying in when the stock was around 70c and doubled down when the price got crazy-low recently. From what I can see the founder is ex-UBS and a big Ben Graham/Warren Buffett fan. So he clearly formed the view that 70c represented a significant discount to the companies intrinsic value. I share his sentiment.

Good on them, I think they are going to make a lot of money on this investment.

They bought 20% of ASX:MMA recently.

https://www.asx.com.au/asxpdf/202003...qft7g8yvqh.pdf

Also bought up big stake in ASX:TPS.

https://www.asx.com.au/asxpdf/201912...rn9rcxh2rv.pdf

Black Crane is a deep value fund manager with significant corporate finance expertise, focused on small/mid cap companies in the Asia Pacific region. Black Crane partner with the boards and management teams of their investments to create value for all shareholders.

Looks like these guys pray on struggling companies, by building up a large stake in them, and then put their own guys on the board.

CEO Martin Stewart might be out of the job soon!

[mistaTea]

They bought 20% of ASX:MMA recently.

https://www.asx.com.au/asxpdf/202003...qft7g8yvqh.pdf

Also bought up big stake in ASX:TPS.

https://www.asx.com.au/asxpdf/201912...rn9rcxh2rv.pdf

Black Crane is a deep value fund manager with significant corporate finance expertise, focused on small/mid cap companies in the Asia Pacific region. Black Crane partner with the boards and management teams of their investments to create value for all shareholders.

Looks like these guys pray on struggling companies, by building up a large stake in them, and then put their own guys on the board.

CEO Martin Stewart might be out of the job soon!

Things could definitely become very interesting.

They may buy an even larger share and end up pushing The Board for a discounted capital raise. They will fully participate of course...further lowering their average price paid for the company.

Clear the $100M bonds and then see if the company gets a re-rate with a stronger balance sheet. All else being equal their debt would drop to $115, below forecast EBITDA (a metric I loath yet the investment community seem to love).

Peter Kennan won't care if existing shareholder wealth is destroyed in the process (I doubt, anyway!). If doing a capital raise is a mechanism for Black Crane making the most money then they will go for it (and there is absolutely nothing wrong or immoral about profit maximisation I might add. I certainly want to maximise my profits when I make an investment too!).

So the odds of a capital raise happening this year has just gone up in my mind. I better keep some powder dry as Blackcap has suggested!

[Ogg]

Things could definitely become very interesting.

They may buy an even larger share and end up pushing The Board for a discounted capital raise. They will fully participate of course...further lowering their average price paid for the company.

Clear the $100M bonds and then see if the company gets a re-rate with a stronger balance sheet. All else being equal their debt would drop to $115, below forecast EBITDA (a metric I loath yet the investment community seem to love).

Peter Kennan won't care if existing shareholder wealth is destroyed in the process (I doubt, anyway!). If doing a capital raise is a mechanism for Black Crane making the most money then they will go for it (and there is absolutely nothing wrong or immoral about profit maximisation I might add. I certainly want to maximise my profits when I make an investment too!).

So the odds of a capital raise happening this year has just gone up in my mind. I better keep some powder dry as Blackcap has suggested!

I don't think much will happen in the short term. They will keep shaking the tree by churning the stock. I suspect it will trade sub 30 for some time.

They know "Accident Compensation Corporation" need to offload their holdings as they're not allowed to hold companies like this. So they'll wait for them to dump again so they can pick up the rest of their 26m.

Also, more retail holders will continue to sell as they look for cash during the downturn.

The plan would be to find a buyer by years end who has the liquidity to buy both the company and clear the bonds. I would say a rights issue is now less likely and a hostile take over more likely.

I am going to buy more but only if it stays at this level or lower. I won't be averaging up if it does start to rise.

[mistaTea]

I don't think much will happen in the short term. They will keep shaking the tree by churning the stock. I suspect it will trade sub 30 for some time.

They know "Accident Compensation Corporation" need to offload their holdings as they're not allowed to hold companies like this. So they'll wait for them to dump again so they can pick up the rest of their 26m.

Also, more retail holders will continue to sell as they look for cash during the downturn.

The plan would be to find a buyer by years end who has the liquidity to buy both the company and clear the bonds. I would say a rights issue is now less likely and a hostile take over more likely.

I am going to buy more but only if it stays at this level or lower. I won't be averaging up if it does start to rise.

That is a very interesting insight, and also very plausible.

Thanks for the thoughtful posts mate - it is going to be fascinating to see what happens over the next few months that’s for sure!

[blackcap]

They know "Accident Compensation Corporation" need to offload their holdings as they're not allowed to hold companies like this. So they'll wait for them to dump again so they can pick up the rest of their 26m.

.

Why are ACC not allowed to hold SKT? Just curious but I do not see SKT as a sin stock or a fossil fuel stock.