SKT Sky Network Television Limited.

[mistaTea]

Not to mention there are 3rd party, macro,virus, actions of Sky themselves that no one can know. The market reacts to all that when it processes it and the trend is clearly down.

Where did I misquote you chief? I’m not sure how the market reacts to things “that no one can know”. That is amazing to me.

The first part of my response to you was about whether or not I think movements in share prices of even 1c mean that I think the market is always ‘wrong’. I never said that at all.

[Ogg]

https://www.fijitimes.com/nrl-braces...-eye-discount/

Nine was due to pay A$118 million (NZ$126 million) in 2020 for the broadcast rights, although the network has now indicated to ARLC chairman Peter V’landys that it wants to pay only about A$90 million (NZ$96 million). V’landys, who has already persuaded a reluctant Nine into accepting the May 28 start date, may argue for a less substantial discount.


Media sources say Foxtel, which was due to pay about A$190 million (NZ$203.5 million) this year, is willing to only deduct the value of the four rounds lost at a saving of about A$30 million (NZ$32 million).

[steveb]

You could say that the rights are going to be worth more than pre-covid,given that there will be no spectators allowed and the absence of any other sport on TV.

[moimoi]

""In fact, if you were to look at the Market Value of Sky TV over the last 2 years, you would have to say that the market has got it wrong at every turn.""

Mr.T,

Have you got some method of selling your shares off market @ your assessment of "intrinsic value".?

If you do could you let the rest of us in on the secret?

Price is Truth and most of us are dealing with "the market price".

[mistaTea]

Price is Truth and most of us are dealing with "the market price".

I think that price becomes the truth to the existing shareholder when he sells. Until then, price is largely meaningless in my view.

Price is definitely 'the truth' at all times if you are a speculator - Efficient Market Theory applies because all that matters is price at any given point in time.

Price can also become 'the truth' very quickly to a value investor if he does not hold enough cash reserves to look after his day to day and gets caught out. If he needed to sell shares when they are low relative to his estimate of intrinsic value because he needed to settle a tax bill, for example, then the price becomes very real very quickly.

Beyond that I simply make the point that price at any given point in time is largely meaningless to the long term business owner. Assuming the low price does not attract an unwanted takeover that succeeds, all the business owner cares about is how the business is performing.
In that light my previous posts attempt to point out what I perceive to be strange market behaviour.

The quoted value of the business has fallen by 90% over the last 2 years. In that time, though the exact same challenges persist today, the business has made a lot of improvements. But apparently the market was 'wrong' back then because the quoted value has fallen so steeply despite the significant improvements.
Even more recently when the quoted value of the business was 70c (implied business value of ~$305M), those who were buying at that price must have been 'wrong' because virtually overnight the SP fell to 19c (implied business value of only ~$83M) based of speculation around sport subs I suppose, even though if anything most customers would be reluctant to fully cancel their subs given we were going to be in lockdown.

To suggest that the business was worth ~$222M less overnight is divorced from reality. The drop was purely speculative.

Ahh sweet Jesus, I just ended up writing another "I have a Dream" speech didn't I?

[garfy]

You keep having your 'dreams' mistaTea! I enjoy and value your correspondence.

I am a SKY watcher. I do not watch a lot of TV but when I do SKY has really all I need. I have no wish to sit in front of a TV for hours Netflix, Disney, et al.

And also very important to me is the fact that SKY is a NZ company, not from the country with the 'wannabe' dictator.

Yes, I am a SKY shareholder.

[Jay]

It s a shame you cannot get it all in one place, hang on you use to be able it was called Sky TV I think.
Don't watch loads of TV or binge watch etc etc and only have sky as well - apart from Spark Sport for WRC & FI in the main
Hearing some colleagues talk, it sounds as though they spend from waking point to going to sleep watching this series that series on NetFlix etc especially during the weekend and they say or you should watch this series or that series its really good, don't think my life is any the worse for not watching it!
Though they would probably say I watch a lot of drivel, but I'm not looking for anything intellectual, thought provoking etc in the main when watching, just some down time that is entertaining like some of the British comedy dressed up as a quiz show!

[Ogg]

It s a shame you cannot get it all in one place,

Seems like you can get it all in one with SKY UK.

https://www.sky.com/shop/tv/sky-q/

I don't know why SKY NZ doesn't go into the broadband market and the update their sky boxes.

[mistaTea]

Seems like you can get it all in one with SKY UK.

https://www.sky.com/shop/tv/sky-q/

I don't know why SKY NZ doesn't go into the broadband market and the update their sky boxes.

They are weighing up costs/benefits of joining broadband etc versus partnerships.

You can already bundle broadband and Sky TV - with Vodafone TV. I think their pricing could be sharper, but customers can get a Sky bundle without MySky fee and an extra $10 discount. All streamed, no satellite dish required - so great for those with fast internet.

So continuing to leverage this partnership and forming new ones is one potential path forward.

If they were to enter the broadband market directly...

Do you think they should borrow money to purchase an existing player (Vocus has been for sale on and off for a while...) or just go it alone as a brand new provider?

[Ogg]

If they were to enter the broadband market directly...

Do you think they should borrow money to purchase an existing player (Vocus has been for sale on and off for a while...) or just go it alone as a brand new provider?

Just do it alone over long period of time.

Better yet, do the Vodafone merger, and argue to the Commerce Commission that there has been a material change to the circumstances.