If he dumps any more stock I am going to start referring to his intials as PK from The Power of One.
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With NPAT of between $40-50m, no debt and property sale proceeds of around another $50m, I think even this Board could not justify a continuation of the no dividend policy. I understand the need to build a war chest to ensure they can continue to hold onto the rugby, expand content etc, but even allowing for all of that there's plenty in the coffers to finally start giving a return back to long suffering shareholders. There will be a revolt if they don't and the SP will continue to slide. Conversely the SP will strengthen back to $2.20-$2.30 as soon as they announce a return to regular dividends and perhaps a special dividend. It's a no-brainer, which is just as well as the Board seem to be operating without one at the moment.;)
The milk may (or may not) lift the sp while the cow is definitely worth a lot more when it is involved in M&A.
I can recall SKT being one of my best performing stocks when it was burning through cash building up subscriber numbers and not paying a single cent of dividend.
It's all about the squeeze.
Yes, but don't forget they had an opening offer of $2.30 in June.
So to deliver value to sharehoders now they actually need to implement policies (return of capital from campus sale and divvy) that get the SP above $2.30.
Anything at or below that and we would have been better off negotiating with PE. Almost certainly would have gotten them to raise their bid to $2.50+.
That offer has been and gone. Most of us would be happy to establish a new floor around $2.20-$2.30. But you're right that the business is worth $2.50 plus, even perhaps as much as $3.00 long term. It just needs a board that can inspire investor confidence that they are acting in shareholders best interests. They've cleaned the balance sheet, consolidated shares, reduced head count, got content deals wrapped up for next couple of years. Now the focus needs to be on getting the SP up where it belongs. The property deal is crucial to release funds. After that it should be plain sailing even with this ship of fools.
I think Mistatea should be the CEO and you should be the chairman. Moloney and Bowman out. It feels like as shareholders we are stuck in Soweto while the management gets to enjoy life in Sandton.
Gimme hope Mistatea
Hope Mistatea
Gimme hope Mistatea
'Fore the takeover to come
I would want to be Chairman & CEO like at Berkshire Hathaway.
I could turn Sky into a $500M business in short order:
- Wrap up property sale. $50m capital return - Cancel 25M shares and pay each shareholder $2/share for each forfeit share. Essentially a one-off tax free divvy for shareholders that allows us to further reduce s/o to ~150M.
- Leverage the Balance Sheet for new initiatives like Sky Mobile as well as remaining costs to launch the new STB. $20M-$25M should do it very comfortably.
- Reintroduce a sustainable dividend. Probably start with $30M (split $15M every 6 months). A 6% yield would push the market cap to $500M ($3.33/share based on 150M s/o post capital return). Plenty of room to grow this divvy over time.
Then aggressively pursue merger opportunities.
You don't need to be a genius.