SKT - Sky Network Television

[Mysterion]

Just lol at directors not buying on market!!

Surely something is happening behind the scenes!

No way can this continue going into the shareholder meeting!

[mistaTea]

Just got an email from Sky saying that broadband is increasing by $6/month from 1 November.

I will no longer be a customer by then, but they are increasing prices by 7.5% while they still have so few customers.

More wit and wisdom from Sophie and the team in terms of how to drive 'growth' it seems.

[Mysterion]

2.06



I'm starting to get interested at these levels!

[Mysterion]

Just got an email from Sky saying that broadband is increasing by $6/month from 1 November.

I will no longer be a customer by then, but they are increasing prices by 7.5% while they still have so few customers.

More wit and wisdom from Sophie and the team in terms of how to drive 'growth' it seems.

So lucky you sold out! Some poor guy is sitting on a huge loss now because of you!

[Mysterion]

Market cap at $2 = $350m - $140m cash = NZD $210m = USD $119m

[Mysterion]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/378878/354390.pdf

- Be CFO
- Buy shares on market
- 12 months later be underwater

[mistaTea]

So lucky you sold out! Some poor guy is sitting on a huge loss now because of you!

$2.05 and the depth is terrible.

Worst thing is, at these prices Sky is still overvalued.

Even if you only look as far as next year earnings (which we have definite guidance for) and assess it on a yield basis...then anything above $250M market cap post capital return starts to look overvalued RELATIVE to yield you can get form blue chips like Spark.

And the remaining cash balance has to be ignored I think because Sophie has already said she intends to spend it. However the thing she wants to spend it on (the STB) is not certain to stabalise earnings let along chart a path to growth.

Once I looked at it from that angle, it was clear to me that Sky TV was actually way overvalued at the point I sold out.

So I suggest a closer 'fair value' for Sky with the way things are is $1/85/share pre-capital return. $1.45/share post capital return.

That would represent a mid-point dividend yield of 8% - which is probably still being generous to Sky given the big risks we have outlined with expensive and uncertain renewals coming up.

[Mysterion]

$2.05 and the depth is terrible.

Worst thing is, at these prices Sky is still overvalued.

Even if you only look as far as next year earnings (which we have definite guidance for) and assess it on a yield basis...then anything above $250M market cap post capital return starts to look overvalued RELATIVE to yield you can get form blue chips like Spark.

And the remaining cash balance has to be ignored I think because Sophie has already said she intends to spend it. However the thing she wants to spend it on (the STB) is not certain to stabalise earnings let along chart a path to growth.

Once I looked at it from that angle, it was clear to me that Sky TV was actually way overvalued at the point I sold out.

So I suggest a closer 'fair value' for Sky with the way things are is $1/85/share pre-capital return. $1.45/share post capital return.

That would represent a mid-point dividend yield of 8% - which is probably still being generous to Sky given the big risks we have outlined with expensive and uncertain renewals coming up.

Bro, you're being overly negative!

It's fair value at $2 per share.

Below $2 it's a buy.

Things aren't that bad. It's all about valuation.

Exabit A:

[Mysterion]

AMC launches NZ streaming service

Why the stock is likely down.

https://businessdesk.co.nz/article/media/amc-launches-nz-streaming-service

[Mysterion]

https://www.stuff.co.nz/entertainment/stuff-to-watch/300700857/a-new-streaming-service-is-coming-to-new-zealand-what-is-amc

How much will it cost?

They are offering a special bundle for Apple and Android users to celebrate the launch, which features a special price of $7.99 per month for those willing to lock in a one-year subscription.

Otherwise, the standard monthly price will be $9.99 per month (Acorn TV and Shudder are already available as stand-alone platforms at $7.99 each).

[mistaTea]

Bro, you're being overly negative!

It's fair value at $2 per share.

Below $2 it's a buy.

Things aren't that bad. It's all about valuation.

Exabit A:

On that we don't see eye to eye.

You are saying that right now Sky is worth $350M ($2/share). Subtract the $70M and the valuation should hold at $280M. At that valuation the mid-point divvy guidance would represent a yield of 7%.

Why would I buy Sky at a yield of 7% when I can buy Spark for a yield of 6.8%??

If Sky's future was certain and they had a plausible path to growth...then that might make perfect sense.

The fact they are jacking up broadband prices (when subs are so low still) and cancelling staff benefits is a big warning sign. I appreciate you will try to tie things things back to a takeover, but the reality is the outlook for Sky in terms of earning power is pretty bleak and management are desperately trying to cut costs and raise revenue where they can to staunch the bleed.

These moves might make short-term earnings look 'less bad', however it will actually kill the business longer term.

[mistaTea]

https://www.stuff.co.nz/entertainment/stuff-to-watch/300700857/a-new-streaming-service-is-coming-to-new-zealand-what-is-amc

Once Sky lose exclusivity of HBO...I think it is game over for NEON.

[mistaTea]

LMAO at the guy who thinks he is going to sell his 5,000 shares at $2.16 today.

[Mysterion]

LMAO at the guy who thinks he is going to sell his 5,000 shares at $2.16 today.

It might happen.

What about this guy?

[Perky]

C, mon mistatea. I normally enjoy you analysis but since you sold you become a negative Nancy.

I pretty sure you'll find sky is just passing on the broadband increase..just like most other suppliers...including your beloved Spark

https://www.broadbandcompare.co.nz/n/broadband-prices-are-going-up

What sky does with broadband is pretty irrelevant in my opinion. Broadband is just a commodity now...you can buy it anywhere and it's pretty much the same. Sky just tacking on some bundled revenue.

Holding my 5000 shares for entertainment value..bought at 13.8c so still above low tide.