SKT trending higher though just one persons opinion
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SKT trending higher though just one persons opinion
In an ideal situation, the cash pile could all be used on growth initiatives.
Transform the business, lift EPS, lift the PE multiple (which will happen if confidence is restored) and see large gains in market cap.
But that requires a Board with vision.
We should be able to make a meaningful acquisition using our cash and balance sheet.
Buybacks are great only if the SP is low AND there are no good growth opportunities for the cash. At that point cannibalising our stock is ideal.
Dividends way down the list (or should be anyway). That should only happen if all other possibilities have been exhausted.
Feb 24 will show us just how shareholder-oriented these guys are. They claim to have our best interests at heart, so let’s see.
"Approached for comment today, a Sky spokesperson said the company would make no comment on the speculation."
In the past, when M&A events have been speculated on...yet nothing was in fact in the works...Sky tended to have a lot more to say to journalists.
I think it is very interesting that this time they have just given a clipped "no comment" answer to Dita.
Exactly, normally we would get something along the lines of "We cannot comment on market speculation however note as per our previous comments that we are open to partnerships and continue to work with Jarden to assess any opportunities that may present".
Just: no comment.
If I had to bet on it...I would say PE are going to have another go before Orcon/2D. Purely due to timing.
Orcon/2D have to get their own merger over the line first. If MIRA/Aware Super tried to move quickly to grab Sky now...it would be a complicating factor in the deal they are already getting through. They will only get regulatory clearance for Orcon/2D in March...so the deal will finalise in April, or maybe May.
That gives a window of opportunity for PE to get a deal done before they have competition.
In any case, Sky shareholders are sitting pretty. If PE make another low ball offer, the Board will reject it (again) and we will get our buybacks and divvys. That will support the SP and help future negotiations.
If they do make a good offer (I am thinking the EV needs to be at !$600M given the significant cash pile). That would generate a sale price of $650-$700M ($3.70 - $4 per share) then shareholders get certainty sooner.
Anything less than that and we are better off continuing as we are, tak the "lolly scramble" in Feb 24 and then work on a better deal.
Completely agree with you. Volume dropped off notably on 17th of Jan, when all fund managers were back. This is notable as the weeks before then should have been much lower volume than that period due to holidays. On market action has just looked like retail and ETF flows.
I reckon there's a very good chance someone has been in serious talks with Sky and major holders trying to agree on a price from 17th of Jan. If this is the case then any announcement would be imminent (and certainly before results).
Note: this is my own opinion and is pure speculation. It should not be considered any reason to buy, hold or sell.
It could most certainly simply mean that major holders are happy with their current positions and simply have no requirement to trade. However it stands out to me that volume has dropped off whilst the rest of the market has become extremely volatile with high volumes. That is unusual, which in my view increases the odds that something is going on behind the scenes (i.e. funds would not be able to buy or sell if there are confidential talks underway).
Just to fuel the rumours..
Just received an email from 2degrees offering a ‘2degrees perk’ of 6 months of SkySportNow at 20% off - $31.99/month.
Guess they’re still friends, anyway.
Just seen the big posters in my local mall advertising this outside the 2Degrees store. Free advertising for Sky. Great move
Is any one else having trouble with Neon casting, since I updated to the latest version to my phone, the movies pauses for a few seconds every 3 to 5 mins.
Mortal Kombat now streaming on NEON…
Ahhh, the fight scenes remind me of the punch ups I used to have in Shadows during my Uni days.
Surely if a T/O offer is coming it will be in the next two weeks? Once the capital management plan/policy is announced and the share price jumps a T/O offer needs to be that much higher to be successful. If someone’s going to make a move it’s now or never? Buckle up it could be an interesting couple of weeks!