SKT Sky Network Television Limited.

[Quantitative Easing]

Interesting...

And given I tend to take a very long term view with my investments, I would be gutted if someone came in now and picked the company off for $500M or less. On the balance of probabilities, Sky TV will be worth considerably more than that in time if they are able to execute the plan reasonably well. They don't have to get everything perfect...but if they get enough things right it should put to bed any notion that they are going to go bust in the next few years.

Sky might be a good company and all of that but the market has a very very very dim view of sky. On intrinsic value sky should be trading upwards of 60cents/share but the market has given it a f&8k all chance of surviving. Hence why the share price is in the gutter. Sky can't keep doing these highly diluted capital raises every time Martin wants to embark on a project. Sky will struggle or forever be a penny stock till it gets taken over. Sky will do far better either as a private company or a company backed by deep pockets.

[mistaTea]

Sky might be a good company and all of that but the market has a very very very dim view of sky. On intrinsic value sky should be trading upwards of 60cents/share but the market has given it a f&8k all chance of surviving. Hence why the share price is in the gutter. Sky can't keep doing these highly diluted capital raises every time Martin wants to embark on a project. Sky will struggle or forever be a penny stock till it gets taken over. Sky will do far better either as a private company or a company backed by deep pockets.

I think there is a lot of merit in the points you make.

To be fair to Martin though (and believe me, I am annoyed at how this CR has been executed for a number of reasons, including letting management who don't own stock come in and snap up new shares @12c...) he has to play the cards that he has been dealt.

Sky TV is a listed company, and the SP has fallen to levels that are just bonkers. That is despite stronger than expected progress in some key areas. All of the criticisms made of what Sky has done wrong and need to fix...he has agreed with and moved quickly to change.

He does have to be careful and cannot keep diluting existing shareholders etc. Absolutely, no argument there.

But apart to giving him crystal ball so he could have done this CR at a better time...overall, I can't really fault the strategy.

So I have to separate my disgust at elements of the current CR with my view of what the company will be worth over time given the strategy.

I do agree though that, ultimately, Sky would be better off if it was taken private.

[winner69]

The market sees SKT for what is is ....and even a capital raise won’t change that view in the short medium term.

[mistaTea]

The market sees SKT for what is is ....and even a capital raise won’t change that view in the short medium term.

It would be so much easier if the market realised that everybody else is wrong and I am right.

[Quantitative Easing]

I think there is a lot of merit in the points you make.

To be fair to Martin though (and believe me, I am annoyed at how this CR has been executed for a number of reasons, including letting management who don't own stock come in and snap up new shares @12c...) he has to play the cards that he has been dealt.

Sky TV is a listed company, and the SP has fallen to levels that are just bonkers. That is despite stronger than expected progress in some key areas. All of the criticisms made of what Sky has done wrong and need to fix...he has agreed with and moved quickly to change.

He does have to be careful and cannot keep diluting existing shareholders etc. Absolutely, no argument there.

But apart to giving him crystal ball so he could have done this CR at a better time...overall, I can't really fault the strategy.

So I have to separate my disgust at elements of the current CR with my view of what the company will be worth over time given the strategy.

I do agree though that, ultimately, Sky would be better off if it was taken private.

I hope you are right. Martin has been in charge for more than a year and made changes and even won the rugby rights but it has done nothing to reverse the downward trend of the share price. How are we certain that broadband and capital raise would change the trend? I thought winning rugby was the magic bullet but i was wrong...so i don't know if broadband and capital raise will be the magic bullet. Introducing the dividend would change sentiment a little but that is all. Martin needs to show that he cares about the shareholders.

[k14]

To be fair to Martin though (and believe me, I am annoyed at how this CR has been executed for a number of reasons, including letting management who don't own stock come in and snap up new shares @12c...) he has to play the cards that he has been dealt.

On this point, is it possible that some of the management team that bought shares have currently valid options which entitled them to buy shares in the cap raise?

[macduffy]

Introducing the dividend would change sentiment a little but that is all.

After raising new capital at 12c/share?

[Quantitative Easing]

After raising new capital at 12c/share?

Even if the dividend is 2 cents/share/year that is over 10% yield at current price.

[mistaTea]

Martin has been in charge for more than a year...

....Martin needs to show that he cares about the shareholders.

Given Martin has only been in the role for a short period of time, and given there are many challenges he is facing at once...as a shareholder with a long term view, I am still willing to cut him some slack.

Not a lot more slack, mind you. But given the downward trend of the business (so far as the markets are concerned) that he inherited...I don't think anyone should have been expecting a miracle 12 months after he started.

And it does not all fall on Martin. The Board is responsible for setting the strategy (Martin is only but one Board Member). Martin then has to execute that strategy.

But is is not like Martin is just sitting there all on his own and allowed to do whatever he wants whenever he wants. Without a doubt he is given a fair amount of leeway...but the big decisions are not just made by him.

[Entrep]

Fellet v Stewart

Stewart arrived in Feb 2019 the SKT SP was around 90c ($1 - 80c). Lowest to date is what, 15c? 83% drop from peak.

Fellet peak price was $6.30 or so, exited at 90c. 86% drop from peak.

It took Stewart 16 months to achieve what Fellet did in 16 years.

Who's the better CEO?