SPK- Spark NZ (TELCO)

[44wishlists]

Working from home, and more frequent web conferences and meetings being held, a reliable and fast internet connection are essential to businesses during this very time. And it could change businesses' travel policies, promoting the already in-trend working from home practise from this pandemic. This pandemic could really change the way how people work and how businesses meet.

[BlackPeter]

Just looking today at SPK in my quest to assess how good analysts predictions are.

In February 2019 the SPK share price peaked at $4.09. At that stage the combined mental power of 10 share market analysts forecasted that over the 12 months to February 2020 the SPK shareprice will drop by 8.5% to $3.74 (consensus).

SPK actually peaked in February 2020 at $4.84, i.e. the actual share price was 29% above the consensus and SP moved into the opposite direction from the forecast (rise instead of drop) - i.e. analyst forecast is a clear FAIL.

Looking into the consensus buy recommendation - it was in February 2019 a pretty straight "HOLD"(5.2/10) - i.e. analysts said that the share will essentially move with the NZX. NZX 50 went up by 21% and SPK went up by 18% (just slightly below the NZX50). Not too bad, this would be according to the rules of this exercise still a "PASS"

I am doing this exercise as well with other NZX listed stocks - the overview is here:
https://www.sharetrader.co.nz/showth...arket-analysts

18 stock forecasts checked so far (checking for each consensus and buy recommendation);
Consensus share price forecasts correct: 4/18; analysts hitrate: 22.2%
Consensus recommendation vs NZX50 correct: 6/18; analysts hitrate: 33.3%

[mfd]

Spark getting smashed like everyone else, but you'd think the drive to work from home and spend more leisure time at home would be beneficial. Obviously a hit from sports being cancelled, but looking pretty tempting. Any major concerns I'm missing?

[Entrep]

Spark getting smashed like everyone else, but you'd think the drive to work from home and spend more leisure time at home would be beneficial. Obviously a hit from sports being cancelled, but looking pretty tempting. Any major concerns I'm missing?

Planning to buy more SPK than any other share, just waiting for the right time

[flyer]

Planning to buy more SPK than any other share, just waiting for the right time

Yeah, but when will that be, buying one day, lower the next. Maybe just stagger your purchases.

[Entrep]

Yeah, but when will that be, buying one day, lower the next. Maybe just stagger your purchases.

100% - that is what I have been doing

[oldtech]

Spark Finance extends standby facility

31/3/2020, 4:22 pm GENERAL MARKET RELEASE
31 March 2020
Spark Finance extends standby facility
Spark Finance Limited, the wholly owned subsidiary of Spark New Zealand Limited (“Spark”) that carries out the borrowing activities for the Spark group, announced today that it has extended the term of its NZ$200 million committed standby revolving credit facility (“Standby”) by one year, to mature on 30 April 2023, with a commitment stepdown to NZ$167 million for the period from 1 May 2022 to 30 April 2023.

The Standby is provided through participation from Australasian and global banks.
Authorised by:
Alastair White
GM Capital Markets
- ENDS –


https://www.nzx.com/announcements/351003




Is this implying that Spark are unsure about their ability to service debt in the coming three years?

Disc: Holder and Spark employee

[kiora]

Just good business practice to have good working capital & liquidity I would suggest.
Spark business is a great "utility", relatively low risk in this business environment

[Snoopy]

Is this implying that Spark are unsure about their ability to service debt in the coming three years?

Disc: Holder and Spark employee.

No, quite the opposite. It implies that the banks are very happy to keep Spark as a customer in the short term, while in the medium term they want to use some of the Spark 'good credit' to redeploy into more dodgy loans for big business customers without such a positive repayment profie. That's how I see it anyway :-).

SNOOPY

discl: Spark customer and shareholder

[oldtech]

Thanks kiora, Snoopy