SKT Sky Network Television Limited.

**mistaTea** · 28-06-2021, 11:25 AM

Originally Posted by Habits

Sky will be the exception, if mista is close or right on the 2cps divie that would be over 11 percent yield and worth backing

Don't forget, if Sky start a divvy after a buyback...and pay 2c/share interim and 2c/share Final...that is a total of 4c/share. If expected yield sits somewhere between 8% - 12% then it would imply a SP of 33c-50c.

**Habits** · 28-06-2021, 11:45 AM

Originally Posted by mistaTea

Don't forget, if Sky start a divvy after a buyback...and pay 2c/share interim and 2c/share Final...that is a total of 4c/share. If expected yield sits somewhere between 8% - 12% then it would imply a SP of 33c-50c.

A good news story indeed... directors and ceo are inclined to retain cash imo

**iamaskier** · 28-06-2021, 11:46 AM

Originally Posted by mistaTea

Don't forget, if Sky start a divvy after a buyback...and pay 2c/share interim and 2c/share Final...that is a total of 4c/share. If expected yield sits somewhere between 8% - 12% then it would imply a SP of 33c-50c.

Wouldn't we generally expect insiders to be buying up on a positive outlook like that? I don't think there's been much action on that front other than Handley (ex)? That said, I'm also not convinced on a takeover/ merger which (hypothetically) might explain lack of insider purchases. I guess all the speculation will be put to rest tmw anyway..

**mistaTea** · 28-06-2021, 12:32 PM

Originally Posted by iamaskier

Wouldn't we generally expect insiders to be buying up on a positive outlook like that?

Well, management are restricted on when they can buy/sell shares.

The reintroduction (or not) of a dividend is price sensitive. I would think that they have to wait before being able to buy.

Imagine if they have known for the last month or so that they are going to reintroduce a divvy... they then go on a purchasing spree at ~17c/share. Then announce a dividend tomorrow...SP shoots up to 25c - 30c...anyone else see any issues here?

As a more general sentiment, I would prefer management to have a lot more skin in the game.

**LaserEyeKiwi** · 28-06-2021, 12:45 PM

I think 4c a share is way too optimistic (unless you are talking about a one off special dividend). A sustainable 2c a share annual dividend is enough to ignite a rocket under the share price though.

**iamaskier** · 28-06-2021, 12:49 PM

Originally Posted by mistaTea

Well, management are restricted on when they can buy/sell shares.

The reintroduction (or not) of a dividend is price sensitive. I would think that they have to wait before being able to buy.

Imagine if they have known for the last month or so that they are going to reintroduce a divvy... they then go on a purchasing spree at ~17c/share. Then announce a dividend tomorrow...SP shoots up to 25c - 30c...anyone else see any issues here?

As a more general sentiment, I would prefer management to have a lot more skin in the game.

Yea that last point is sort of more along the lines of what I was thinking, in the sense that you'd imagine things would be looking pretty good internally for a while before a divvy/ buy back etc is lined up and insiders' trading becomes restricted. Handley bought some and Bowman a few in March and that's about it?

**mistaTea** · 28-06-2021, 12:51 PM

Originally Posted by LaserEyeKiwi

I think 4c a share is way too optimistic (unless you are talking about a one off special dividend). A sustainable 2c a share annual dividend is enough to ignite a rocket under the share price though.

4c/share assumes there has first been a $50M buyback that has reduced the shares outstanding to ~1.5B.

In that case 4c/share would be $60M a year. That would represent 85% of the low range of projected FCF ($70M). Not optimistic at all.

If there is no buyback first, then a total divvy of 3c/share is more realistic. 1c/share interim with a 2c/share final (if conditions allow).