Sometimes i wish Martin Stewart was an ex hedge fund manager. He would've done the right things for the share price to go up...rather than naming stadiums and starting sky sport 'next'.
Before they were going to become a telco I didn't see the point given they have the partnership with Vodafone - VTV offers most of what they are saying (apart from 4K Sky content - but that is not a limitation to the latest generation of VTV given they stream NETFLIX in 4K).
Now that they are becoming a telco (at long last!) perhaps there is a place. They could give the $199 box away for 'free' to customers who take a 12 month Broadband plan with a Sky bundle). Customer owns the box, and can be marketed to consume more Sky content over time - be it additional bundles, PPV movies or sport events.
Why continue d1cking around with all these surveys if they are just adopting Vodafone TV because a merger deal is in the works? That makes no sense to me.
Even better if it is a combined Sky Box and wifi modem in one!
It's a holding pattern. Guidance didn't spark any new interest. The board really need to reposition SKT narrative into that of a growth stock / disruptor (which it is capable of being) at the AGM. They need to shake the market out of its malaise if they want to move the SP.
The downtrend is so entrenched it will really take something miraculous to change the trend ....and there seems little on the horizon
Once a market pariah always a market pariah
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
I think a stabilisation in normalised FCF would see some pressure upwards. The market has been worried about subscriber losses, content costs and reduced earnings.
Subs have increased a lot (lower margin streaming customers for sure, but still very positive). We will get a flavour of how the cost control is going in the next report.
If they are able to maintain ~50M (3c/share) a year moving forward that can be used for dividends and/or a share buyback it should make the market view the business as more valuable.
Even if the market only valued the business at 10x 'distributed FCF' you would be looking at a MC of ~30c/share. If the market sees the changes in the business (i.e. becoming a telco) as a net positive and expects some growth in 'distributed FCF' over time then the MC could easily hit 40c+.
I am not making any predictions here, DYOR - just pointing out that it is not all doom and gloom for the business and I don't think it would take too much to move the needle.
Though it is also fair to say that the market has been very pessimistic about Sky's future prospects for some time now, so my assumptions may be wrong.
I think a stabilisation in normalised FCF would see some pressure upwards. The market has been worried about subscriber losses, content costs and reduced earnings.
Subs have increased a lot (lower margin streaming customers for sure, but still very positive). We will get a flavour of how the cost control is going in the next report.
If they are able to maintain ~50M (3c/share) a year moving forward that can be used for dividends and/or a share buyback it should make the market view the business as more valuable.
Even if the market only valued the business at 10x 'distributed FCF' you would be looking at a MC of ~30c/share. If the market sees the changes in the business (i.e. becoming a telco) as a net positive and expects some growth in 'distributed FCF' over time then the MC could easily hit 40c+.
I am not making any predictions here, DYOR - just pointing out that it is not all doom and gloom for the business and I don't think it would take too much to move the needle.
Though it is also fair to say that the market has been very pessimistic about Sky's future prospects for some time now, so my assumptions may be wrong.
I dunno who's spamming the forum more. Me going on about a takeover or you arguing Sky is worth 30c+
Only the takeover is miraculous .....but then we will never see an uptrend
Other two cosmetic and probably only result in a sideways trend.
Buy back till there is only 500 million shares outstanding. Then if Sky is still worth 250 million, the share price would be worth 50c/share. Pretty pathetic how there are trades for 1/10 cent on the NZX now due to the gazillion shares outstanding.
Originally Posted by Quantitative Easing
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Pretty pathetic how there are trades for 1/10 cent on the NZX now due to the gazillion shares outstanding.
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