Rural Broadband not up to it for RWC.
https://www.odt.co.nz/business/rural-broadband-not-cup
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Rural Broadband not up to it for RWC.
https://www.odt.co.nz/business/rural-broadband-not-cup
I see Morning Star have upgraded them to a buy, with a valuation of $2.50.
I am sure there are a lot of people that would be happy to see the price up around $2.50 again. Thinking that might take a significant reevaluation of their business model, with $0.50 looking more likely on their current share trajectory.
Why is there talk about Morning Star? It's completely irrelevant... when have SPs EVER followed Morning Star's recommendations?
Sky still has cash in the bank, there’s time for an acquisition or a takeover whichever comes first lol
Though SKT's wished for demise by some on here would potentially be good news for SPK shareholders, for the wider population, handing Spark a free hand to charge whatever they want for media wouldn't bode well.
The scary thing is some banks with their house brand Kiwisaver scheme's use these muppets as their research supplier and don't have one of their own.
This probably explains why most house brand bank Kiwsaver funds are extremely poor performers. Just because some junior researcher plugs some assumptions into a DCF model without any real thought does not mean the output is going to be any good ! $2.50 is fantasy land stuff. If they think its a BUY with that target its really a SELL lol
Might be ripe for the likes of Graeme Hart to strip for parts?
Merely making the note. I suspect that Morning Star have the same funding model as the Better Business Bureau after watching when and what they recommend.
Just by way of disclosure, I do not own SKT or SPK. I do get all of my entertainment streamed through either freeview or netflix though.
Morning Star make the point that SKT still has deep pockets and a sound balance sheet. Their valuation model allows for declining dividends and strongly decreasing earnings through to 2020 but with predicted PE of 5.6 and yield of 10.0 (2019) and PE of 6.7 and yield of 8.5 (2020) I do not think they are being silly with their recommendation. With a net margin over 14% (and up on the previous year) and net debt to equity of 22.5 this company still has value at today's SP.
Of course there is risk. You would not be in the market otherwise. However, I remember when the SPK SP (as Telecom) reached $1.50 not too many years ago and all was doom and gloom.
With SPK's increasing strength in media, the Commerce Commission may have a different opinion going forward and it may even be possible that the Vodafone merger plan is resurrected.
Just posted on the other forum, but I thought that I would share here as well.
Had a bit of time tonight so decided to look into SKT but not at a FA or TA level (as we all should be able to identify a decaying company in a solid down trend – even if Kiltearn Partners can’t), instead I’m looking at the ‘Troughing’ level and from what I’ve seen this company is up with the best in the NZX.
So, I’ll start at the top with John (Managing Director/CEO), Total Remuneration in 2018 of $1.95m incl short and long term bonuses of $562k.
Over the last 5 years his Remuneration has been between $1.8m and $2m, while the Share price has dropped approx. 80%. I’m unsure of the exact hurdle levels that he must achieve to get his bonuses, the categories are listed in the latest Annual Report but none of them are on the total shareholder return or EPS growth (which works well for him)
He’s been in the role for 17 years and is probably looking to clip the tick until the lights finally get turned out.
The Board – Well the board fees range from $100k to $187k (chairman & on committees) for….wait for it……….7 board meetings a year! That’s right, just 7 per year and possibly 8 days of work if the directors decide to attend the AGM . Sweet gig, no wonder why Derek is loving SKT and last year received $146k for rocking up. SKT have omitted the number of board meetings from the last 4 Annual Reports, but up to 2014 they did, and that number was 7 (hmm that’s when the share price was last at a high as well).
The board doesn’t really believe in the company as they have no real skin in the game. John holds a few and has doubled his holding to 240k in the last couple of years, but even the Titanic’s captain thought the ship wouldn’t sink until it did. 26 years in the company and only 240k shares tells me that he’s smart enough to know that getting your snout in the tough with only a part time board to monitor you is a lot more rewarding than owning shares in the company.
If I was a shareholder, I would be asking some serious questions at the AGM, as I think the cast from 7 days would provide shareholders with more value than this current board.
Disc: Don’t hold and never have, might consider buying 1 share to attend what should be an interesting AGM later this year (Even including brokerage it would be cheaper than seeing Elton and you’ll get a snack).
Fair points about John Fellet and the Board, but John's out and there's a new CEO: https://stoppress.co.nz/movingsshaki...tewart-new-ceo