SKT Sky Network Television Limited.

[Baa_Baa]

The really big end of town wins again

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

As the famous saying from Shawshank Redemption, a take on the actual verse "His judgment cometh and that right soon".

[Ogg]

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

About 10% of issue. Pretty standard. Way less than what you suggested (>20%). Traded way higher than what you thought too (just above 12c).

KMD had more "new investors"

"outside of Briscoe Group which elected not to take up its pro-rata entitlements, eligible institutional shareholders elected to take up 96% of their entitlements"

$8.2m (4% of $207m) + $28m (Briscoe) = $36m "new investors"

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

They could dump now and get 40%. I'm sure they have dumped some today and will dump more over the coming weeks but where will they re-deploy the capital? The market cap at 0.17 is only $280m. At what point is it just giving it away? Besides, Black Crane or another hedge fund will just absorb it anyway.

The "new investors" who dumped KMD at TERP have now missed out on another 40% gain.

SKY has been de-risky substantially, why not hold and sell it down over the coming years.

The dump at close was nothing more than price manipulation. There will be pump and dumps over the coming weeks but eventually it's going to trade 20+ once it's churned enough. Demand at this price level will out strip supply. Like I said, it needs a few weeks to settle.

[moimoi]

""There will be pump and dumps over the coming weeks but eventually it's going to trade 20+ once it's churned enough. Demand at this price level will out strip supply. Like I said, it needs a few weeks to settle. ""

20 cents equates to a market cap of $350M with the wipe out shares allocated.

$350M market cap on a company forecast of net profit for FY21 of $5m - $15M.

Hope your passing the pipe around.

GLTA.

[Ogg]

$350M market cap on a company forecast of net profit for FY21 of $5m - $15M.

GLTA.

1.5% - 4.2% yield

What's wrong with that?

Half the companies on the NZX/ASX probably don't even come close to that.

FY21 will be a tough year for most companies as it's post Covid-19. Sky navigating the situation pretty well. Didn't even ask for the wage subsidy.

[moimoi]

Ya probably need to fact check the wage subsidy comment..

[Ogg]

Ya probably need to fact check the wage subsidy comment..

What are you saying? That OSB took the subsidy?

[moimoi]

"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.

But the company told us all today...

""Sky sought to allocate to new institutional investors and existing eligible shareholders who are expected to be aligned to Sky’s long-term business plan to return Sky to growth. As far as Sky is aware, there were no significant exceptions or deviations from those objectives and criteria.""

Surely those " new institutional investors and existing eligible shareholders" (ie: the chosen few) didn't tell porky pies..surely not....!

or is $21M of wipe out shares not meeting the definition of "significant".?

[Ogg]

But the company told us all today...

""Sky sought to allocate to new institutional investors and existing eligible shareholders who are expected to be aligned to Sky’s long-term business plan to return Sky to growth. As far as Sky is aware, there were no significant exceptions or deviations from those objectives and criteria.""

Surely those " new institutional investors and existing eligible shareholders" (ie: the chosen few) didn't tell porky pies..surely not....!

or is $21M of wipe out shares not meeting the definition of "significant".?

Cash is tight. Not everyone can folk out 34 cents a share on short notice during an economic downturn.

You're never going to get 100% take up. Especially on a stock that's been hammered lately.

The point is, the company's future success or possible rebound shouldn't be evaluated on the outcome of the entitlement. It was always going to be a messy raise. It's over now and stock was trading around 20.5 most of the day. Give it a bit of time. Some people need to sell to reload at 12, so that's going to put downward pressure on the stock. There will also be a lot of short term traders and shorters working the stock as a few pips is millions in market cap.

[Balance]

About 10% of issue. Pretty standard. Way less than what you suggested (>20%). Traded way higher than what you thought too (just above 12c).

They could dump now and get 40%. I'm sure they have dumped some today and will dump more over the coming weeks but where will they re-deploy the capital? The market cap at 0.17 is only $280m. At what point is it just giving it away? Besides, Black Crane or another hedge fund will just absorb it anyway.

Pretty standard is normally 3% to 5% of an issue. In this case, the shortfall shares were allotted to 'new' investors, similar to underwriters in effect = 18%. Rather close to 20%, don't you think? rather interesting that the company and underwriters chose to place the shares with 'new' investors rather than leave the shortfall with the underwriters. Effect is same as you now have 18% of shares issued at 12c. But as stated, it could be that the new investors are going to keep their 12c shares for the long term.

New investors cannot sell yet anyway as they will only be allotted their shares & start trading on 2 June. Unless they are shorting the stock.

Retail investors will only get their shares on 16 June - 2 weeks later! So retail investors will have an interesting 2 weeks to watch the price action before they get their allotment and shares.

[moimoi]

What are you saying? That OSB took the subsidy?

OUTSIDE BROADCASTING LIMITED
32 employees
$224,947.20

What are you saying? That Outdoor Broadcasting Ltd isn't part of SKY?