Even at $1.80 there are still a lot of shareholders still sitting on a 50% gain after buying in at 12 cents {$ 1.20} about 16 months ago.
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Forget takeover - the game is over.
Sky is going to be operated for capital growth - that's clear based upon the collective thoughts and comments on this thread, right?
So no takeover, no dividends and no likelihood of a change in strategy?
Hear the sp crashing?
TIMBERRRRRRRRRRRR :eek2:
It's as I pointed out earlier...Bowman and the rest of the Board have set the bar as to what they need to get the SP above now.
As soon as they rejected the opening bid of 23cps (which would have likely ended up 25cps+ if they actually tried to negotiate...) the Board were saying that they are highly confident, based on their insider knowlege, that Sky is worth much more than that.
If they are right, then the patient should be rewarded soon. The longer it takes for them to increase the quoted value of the business, the higher they need to get that quoted value to justify the rejection of the takeover offer.
So far, all we see is the usual - a sliding SP.
So the Board need to pull out something pretty big between now and the HY results to justify their decision in June.
I am confident that they can do a reasonable capital return with a generous dividend because they will have plenty of cash.
If they keep $25M from the property sale to fund the growth projects there will be plenty of money from operating cashflows to distribute to shareholders over the coming years.
But even though they can do it...will they do it?
If they play it ultra conservative then the SP may stay sub $2.30.
[QUOTE=Balance;924957]Forget takeover - the game is over.
Sky is going to be operated for capital growth - that's clear based upon the collective thoughts and comments on this thread, right?
So no takeover, no dividends and no likelihood of a change in strategy?
Hear the sp crashing?
TIMBERRRRRRRRRRRR :eek2:
Nah, I for one, don't buy into the idea that no return to shareholders is likely or desirable. It's already been shown by various posters, including myself, that SKY have plenty of headroom to invest in the business and commence dividends. The two aren't mutually exclusive. If they remain tone deaf to investors then they risk a collapse in share price as both retail investors and institutions relinquish their positions. I could buy into the growth strategy if SKY and this Board had demonstrated an abilty to deliver. Which of course they haven't. Which is why making a some sort of return to shareholders from the considerable funds that they will have available to them is so vital to restoring investor confidence. Nothing demonstrates more clearly that the business is solid than paying a dividend.