SKT Sky Network Television Limited.

[mistaTea]

- Mr.T: whats your forecast on when the company gets back to the long distant memory of a $600M Market Cap.? (Being the mid range of FY21 NPAT X 60)

Ha! Well, you know by now I am not into the 'predicting' game regarding when a SP may reach a certain level. If one thing is clear it is that I have absolutely no idea how the market will behave!

And I am not alone. Early 2019 Greg Smith predicted the SP would lift to $2/share by the end of this year. Ha! He now predicts it will hit 55c/share post CR in a couple of years. From where we are now, that would be a whopping Market Cap north of $900M!

So with regards to your question about MC of $600M. I have no idea - clearly any continued optimism in Sky's future prospects are going to depend on a number of factors, including:

- Return of all Live Sport, including live crowds in stadia
- Successful release of the merged Lightbox-NEON offering. June or July 2020.
- Successful release of broadband offering. I know the newspapers say 'next year' but the presentation says FY21. So that could be anytime from 1 July 2020. The sooner the better.
- Return of some kind of a dividend - possibly in FY22. So that could be in the second half of next year at the earliest.
- Retaining more of their key entertainment rights

A PE of 15 would be not bullish nor bearish. So to achieve a market cap of $600M, in theory GAAP earnings of $40M would do it. I don't have a crystal ball, and the business is still spending a lot of money on repositioning for growth...but building back to GAAP earnings of at least $40M in a 'reasonable timeframe' does not seem completely lunatic to me.

Though my critics will will say that I have been optimistic about Sky for the last couple of years and the market has disagreed with me the whole time. They would say that only a nut would give me the time of day at this stage!

[Cadalac123]

"82% of the Institutional Entitlement Offer and Placement were allocated to existing eligible institutional shareholders. The balance of new Shares were allocated to new investors."

So new investors were allocated $21.456m or 178.8m shares at 12c.

Only 15.7m shares traded today - at closing price of 17c, plenty more stock to come from the new investors who obtained stock at 12c to lock in their 42% profit.

one the shares are issued and the price spikes to 23c again like it did today, there will be plenty of profit taking to ruin those who actually actually bought this company while it was low. Can't believe directors diluted and ruined these shareholders this blatantly.

[mistaTea]

one the shares are issued and the price spikes to 23c again like it did today, there will be plenty of profit taking to ruin those who actually actually bought this company while it was low. Can't believe directors diluted and ruined these shareholders this blatantly.

Yeah pretty nasty stuff - letting directors and management who have had zero skin in the game this whole time gain shares via a placement @12 cents per share.

It is not lost on me and it does piss me off.

[Balance]

Yeah pretty nasty stuff - letting directors and management who have had zero skin in the game this whole time gain shares via a placement @12 cents per share.

It is not lost on me and it does piss me off.

The 178.8m shares really should have been held over and allotted in the retail pro-rata rights issue.

[Dlownz]

We will still be able to get our full allotment?

[mistaTea]

The 178.8m shares really should have been held over and allotted in the retail pro-rata rights issue.

Agreed. If management never bothered to buy and shares over the last couple of years (and there would have been windows of opportunity) then they shouldn't get to participate now, especially given the way the deal has been structured at 1:2.83.

It is absolute bullsh1t, and a black mark against them unfortunately.

I am not going to die in a ditch over it or anything. It is done now and ultimately I am focussed on the future performance of the business, but it is a good reminder about the rat cunning that can go on in the Board Room.

As investors, we put a huge amount of faith and trust in the people who run our businesses. So it is natural to feel some disappointment in the team when you read about things like this.

[mistaTea]

We will still be able to get our full allotment?

Yes.

It does not affect any of the retail entitlement.

It is just piss-poor that they are able to buy shares at 12c when they don't currently own any. In other words, they will all have likely damn near doubled their money over night once they get their shares because they never owned any shares beforehand that will push their average cost above 12c.

[Balance]

Yes.

It does not affect any of the retail entitlement.

It is just piss-poor that they are able to buy shares at 12c when they don't currently own any. In other words, they will all have likely damn near doubled their money over night once they get their shares because they never owned any shares beforehand that will push their average cost above 12c.

There should have been a minimum holding period for said shares.

Anyway, as you wrote - it is what it is.

[Baa_Baa]

What a shambles, a case study for all investors in regards to their vulnerability when the company they own is faced with oblivion and the behaviour of directors not only to sustain the inevitable but to profit from it. Disgusting.

[winner69]

The really big end of town wins again

One day they’ll get their comeuppance ...and that day might be closer than we think.