Yes, after the 10:1 Share Consolidation...
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depressing to see the SP stagnant, on the back of another good result, yet SP of struggling companies like AIR has actually gone up! Even with domestic travel gone and capital raise torpedo by the gov't.
I just pray that consolidation next month will not make the SP more susceptible to drop further.
It was and still is a classic case of ‘the innovators dilemma” - the only way to combat the subscriber decline of an until-now monopoly pay tv provider due to significantly cheaper streaming competitors was to become a dominant significantly cheaper streaming product that cannibalizes your own high margin product. Very few companies successfully manage to do that, as all the short & medium term incentives are instead do the opposite and attempt to protect your existing legacy product instead. I give them some credit for starting Neon & Sky Sport streaming when they did at least.
sell all the sports rights to Spark ASAP (along with sky sport now, rugbypass) for a couple hundred million with a reseller agreement to resell it on skybox, complete the property sale and return $250 million to shareholders. Keep the rest of the business (skybox & NEON, prime, broadband) as a cash cow with minimal capex until it bleeds out.
I'm picking there'll be slow accumulation as weak hands get taken out and steady march ahead until some big news breaks!!!
Ignoring the possibility of a takeover, dividend or capital distribution SKT is currently trading on an EV/EBITDA multiple of 2.0x and that's based off the lower end of FY22 forecasts. Even if you were hugely negative on the outlook for the company you'd think an EV/EBITDA multiple of 3.0x would be justified. Certainly a buyer that could get the whole company at a 3.0x multiple would be laughing all the way to the bank.
On the possibility of a dividend or capital distribution the interim CFO basically confirmed this would happen in answering one of Arie's long winded questions yesterday.
On fundamentals the stock looks dirty cheap and with the possibility of corporate activity or a capital restructure imminent the company is certainly a buy at these levels, imho.
I think they need to do something drastic. Make or break this share is. Should they become an arbitrage fund? Use 200mill to gamble on that zel takeover. Buy in the 3.40s and hope the sale goes through at 3.78 or even higher.
Might as well use the idle money!
Share consolidation
https://www.nzx.com/announcements/378007
When does the window open for the board members to buy shares?
Ignoring the possibility of a takeover, dividend or capital distribution SKT is currently trading on an EV/EBITDA multiple of 2.0x and that's based off the lower end of FY22 forecasts. Even if you were hugely negative on the outlook for the company you'd think an EV/EBITDA multiple of 3.0x would be justified. Certainly a buyer that could get the whole company at a 3.0x multiple would be laughing all the way to the bank.
On the possibility of a dividend or capital distribution the interim CFO basically confirmed this would happen in answering one of Arie's long winded questions yesterday.
On fundamentals the stock looks dirty cheap and with the possibility of corporate activity or a capital restructure imminent the company is certainly a buy at these levels, imho.