Originally Posted by
Baa_Baa
I suppose you've noticed that we've had two years of screwed up market conditions, and now high inflation and a global recession looming? Considering that, I think the market has been quite generous to SKT in giving and retaining most of the recent gains. That might not last though, as factors unrelated to Sky are being priced in broadly across the whole market.
Trying to accelerate the SKT turnaround by having them bought out or some other M&A probably isn't a good idea IMO, best to have a strong market if you want the best outcome. Just note the global IPO's that are being cancelled, as an indicator. SKT are not a distressed seller and even if they are a target for acquisition due to relatively low cap value, I certainly would not give it my vote in the current market environment.
$3.50 for a terminal exit would be a lousy outcome for anyone except a short term trader IMO. Roughly 30-50% over your average price, or even double, for all the years you've been involved and all you've said? Such a low bar, I'm surprised at you losing the faith in the turnaround strategy and hoping for an early exit.
I do agree that it would be a tragic outcome if Sky bought some dumb asset, especially as that is not and has never been part of the turnaround strategy. I disagree completely that the Board are useless (yeah, the Chair maybe) and need to be replaced, let's just get the capital management and shareholder returns restarted then reassess the market and Sky's turnaround and future prospects.
I guess the difference between our views might be at a fundamental level, that I don't buy equity assets just to sell them later at a capital gain? I try to buy a forever asset that has extraordinary cashflows, profits and distributions that pay off my acquisition price and earn an annuity income, forever. SKT only differed because of the high risk of an early entry and potential to fail completely. That's why I like the turnaround strategy, especially that it's working.