Opportunity Cost
RIVN probably gonna double tomorrow.
Can't stay in the SKTray of kitty litter any longer....
GLTA.
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I tend to agree with you that various deals are being worked out in the background - matter of getting the property deal done first & everything will fall into place fast after that.
Shareholders will wake up one morning and find it’s all happening.
Any day now imo.
$2.50 to $2.75 is my pick of where SKT settles at when all the deals are done.
CEO did not buy on market at $1.80 for a 10% upside - that’s for sure!
Putting my money where my mouth is. :scared:
It's been about a year since I bought into this lame dull dog hoping for dividends or buy backs. I'm giving it a few more months then I will probably escape. Just makes no sense that after all this time our debt free, cash flow positive business, has not returned a cent to us. What is their reasoning? Would it really be so terrible to have some debt? They could have taken debt against the property to pump some life into the share price with divi/buybacks, then when it finally sells in 2033 for half what we all expect they can pay the debt back. Put me out of my misery.
Well that blackcaps game I just finished watching was the best thing I have seen in a long time. I really hope Sky holds on to the ICC cricket events - All the best Blackcaps moments happen at these events - Spark must be livid.
https://www.nbr.co.nz/node/232415
Write up on Discovery.
Looks like the big announcement next year will be to introduce Discovery Plus.
I suspect that Bowman has gone back to the UK because he has completed his mission (whatever it was) and the deal has been done. There is no reason to stay. We just have to wait for the announcement.
Well, if his mission was to destroy the wealth of Sky shareholders and reduce transparency they yes - he smashed it out of the park and can enjoy a well earned cold beer in his favourite English pub.
But in reality I think he had enough of lockdowns, has the means to live wherever he wants and took the oportunity to head back to Europe.
If I had to make a prediction, I do think he will resign soon - by the Feb results. They still need to get this property deal done, so Bowman will need to sign off on that first (which he can now do with an e-Signature).
But after that is done, I think he will sling his hook. There are now two Directors living offshore, and one is the Chairman. It is just not realistic that Bowman is going to be able to fulfil his role and obligations half a world away.
He has proven to be an obstacle to mergers and takeovers. So once he leaves then, depending who replaces him, we may see a shift in position/approach.
With a little luck these guys have done the capital return and reinstated a dividend by then. Clearly a stronger SP will give shareholders a better chance of getting a good M&A type deal in the future.
From here I think we just sit tight and see how things unfold. We are right to be very upset with Bowman and the overall lack of disclosure...but we can all chill for now.
The warning shots have been fired, I do belive Sky have taken notice - let's see what they do from here.
Article on NBR today about 2Degrees and Orcon/Vocus in exclusive merger discussions.... Did we know that??
https://www.nzherald.co.nz/business/...PNRRFZBIW7CY4/
"2degrees' adjusted ebitda for the three months to September 30 edged up by US$1 million to US$30.6m - a 3 per cent gain on the year-ago quarter as gains in broadband and business mobile offset lower consumer growth amid lockdowns"
So EBITDA is ~NZ$43M.
Their stay in business CAPEX would be around that are more. Think of all those cellular towers...
So this business really makes no money yet will get around NZ$1.5B if media reports are correct.
Sky earns a lot more money but would be lucky to get NZ$0.5B in a sale.
It just boggles the mind. This is what makes it hard to get a merger done on reasonable terms to SKT shareholders while the SP is in the toilet.
They need to get a move on with selling the property and reimplementing the dividend to shift this around.
Sky needs to be a dividend paying stock to get interest back in. It really is that simple.
And it is baffling that they still seem to brag about the clean balance sheet courtest of the dillutory CR.
Well, the market does not seem to think very much about Sky being 'debt free' - if they were hoping the SP would rocket once we removed all debt because the market would have confidence in Sky's ability to operate as a Going Concern then they were sorely mistaken.
So we have had to pay for Broadband and the STB entirely from Operating cashflows. The total cost of both projects is probably in the $30M-$40M range.
Why in God's name would we not just borrow that money in this low interest environment and keep some form of divvy going?
Or borrow half and pay the other half from cashflow if you still want to be conservative/cautious?
An eventual entry into mobile will probably be another $15M there.
So all in for Broadband, STB and Mobile probably costs around $50M.
I would have been very comfortable borrowing $50M. But even if they were nervous Nellies about that they could borrow a modest $30M and top up the remaining $20M from cashfow over time...still would have left plenty of cash to distribute to shareholders.
The conservtive approach is not working Sky! You need to be more aggressive, get these intiatives delivered faster and for Christ's sake borrow some money!
Ironically, the delay in sale of the property could have worked very well in SKT's favor.
Development land prices in Auckland have gone berserk since the joint announcement by Labour & National about further intensification & housing density rules for the main centres.
Like I wrote before, it's a matter of time - not if but when the property deal is done.
Then, everything being worked on in the background will happen in a rush.
Sp is where it is because the sp momentum has faltered and the traders are bailing out - not because the deals being worked on have dissipated.