SKT Sky Network Television Limited.

[Beagle]

Ouch, who did the numbers on this one. 12 cent raising when the share price is 33 cents? They could have raised at 20 cents and it would have made more sense. 12 cents is a guarantee way to ripe out the hearts of current shareholders just to pay debt with no added value.

Both the tiny size of the institutional placement and the vast discount to the current share price are very clear signals there was almost no institutional support for this. It really looks like desperation on SKY's part and a very loud institutional vote of no confidence in management. Current shareholders are being treated as sacrificial lambs.

[Cadalac123]

Here I was analysing sky the other day and wondering if they’d need to raise capital to help pay off the maturing bonds..

To be fair I think 17c might yet a great yield on a short to medium term trade on sky . Still NPAT positive

[Balance]

Both the tiny size of the institutional placement and the vast discount to the current share price are very clear signals there was almost no institutional support for this. It really looks like desperation on SKY's part and a very loud institutional vote of no confidence in management. Current shareholders are being treated as sacrificial lambs.

Sacrificial lambs only if they do not participate in the capital raising.

There will be a lot of punters however who jumped on the bandwagon in the last few weeks however who are going to regret jumping onboard - the fare just went up dramatically!

[Balance]

Here I was analysing sky the other day and wondering if they’d need to raise capital to help pay off the maturing bonds..

To be fair I think 17c might yet a great yield on a short to medium term trade on sky . Still NPAT positive

For a sunset company with NZ rugby as its only point of difference? Pass.

[Cadalac123]

For a sunset company with NZ rugby as its only point of difference? Pass.

I don’t hold but I feel like it’ll be a decent short term trade . Rough though didn’t a director say the shares were ridiculously undervalued at 0.70c a while ago . Amazing how 15c seemed reasonable to him lol

[Beagle]

Sacrificial lambs only if they do not participate in the capital raising.

There will be a lot of punters however who jumped on the bandwagon in the last few weeks however who are going to regret jumping onboard - the fare just went up dramatically!

Plenty will be happy to triple down thinking 12 cents is a screaming bargain. What could possibly go wrong at that price, you can't lose

[winner69]

Plenty will be happy to triple down thinking 12 cents is a screaming bargain. What could possibly go wrong at that price, you can't lose

You might be right though ...you never know

But I think it’s best to try to read between the lines and work out what all this means.

[flyer]

I own 61000 shares, does this mean at 2.83/1 I can get 172630 new shares for 12c = $20715.60c

Add to what my existing worth is ($20130) so $40845.60/233630 = $0.174c per share in theory after the new raising.

Is this correct?

[tga_trader]

At what point do they decide to privatise? Is that was this 'equity raise' is about?
If this pushes the SP down to $0.20 (for arguments sake) the cap is only $87M, and they're still expecting net profit of $20-25M....

[Stranger_Danger]

On a positive note, I like the new plan to sell broadband.

Now I'll be able to pay Sky TV for the internet I use, to access torrent sites with, in order to avoid Sky TV.