SKT - Sky Network Television

[Teitei]

Why would anyone spend so much time posting on a stock they have self-confessed that they have no confidence or faith in?

It's pathetic!

[mistaTea]

$393M market cap after the 'excitement' today.

Lob off the $70M cash and you have a post capital return market cap of $320M.

If you take the upperend dividend guidance of $24M (tee hee if anyone thinks Sky will actually pay that amount) then a $320M market cap represnts a 7.5% yield.

Spark currently trading at a 6.7% yield. Will Mr Market only expect a 12% higher yield for Sky than they can for the 'sure thing' Spark?

Time will tell. If they believe that Sky can sustain dividends and grow then perhaps.

However, the initial stages of some crunch talks for NZR and HBO are coming up in the not too distant future. Will also take time to see if the new STB produces the ROI everyone hopes for. I think it is too little, too late now - but perhaps I am wrong.

Best of luck to the current owners - I mean that genuinely.

[Mysterion]

Why would anyone spend so much time posting on a stock they have self-confessed that they have no confidence or faith in?
It's pathetic!

Can you imagine a forum without downrampers?

[Waltzing]

Its a short term trade...

[mistaTea]

Its a short term trade...

Yes, with interest rates still rising investors will demand a big yield from Sky to justify the many risks.

I am terrible at predicting price movements, but imo Sky is overvalued with a market cap of $300M+ after the $70M is returned.

[Plata]

Good to see they are flirting with the idea of a buyback, I wonder if that counts as growth capex (growing EPS). I don't envy the position the execs are in here, there is not a clear way forward for sky and I seriously doubt the new set top box (is that even out yet?) is going to change anything at all. Of the expected growth capex going forward, how much is allocated for the set top box? Are they buying them in advanced or in batches to match demand? If demand for these boxes is as weak as I anticipate AND significant growth capex has been earmarked to acquire these, they may end up underspending and have more cash to distribute via buyback/dividend than is forecast.

[mistaTea]

I'm sure the SP won't keep going down from here...

[Shareguy]

Very interesting article in the NBR . Clearly a lot of posters who thought discovery would ditch Sky were wrong.  Insert below

Sky partnership

Some of this content is already being shown on Sky but Warner Bros Discovery (WBD) assured the crowd that it retained a "highly valued and very much-loved partnership with Sky", and later, Glen Kyne, Warner Bros. The Discovery senior VP and head of networks, Australia, NZ and Japan (to use his full title) told NBR the company was in fact "doubling down" on that partnership.

For example, although WBD talked of using more CNN content on Newshub (and presumably vice-versa) "it certainly wasn't taking the CNN channel away from Sky – it's talking about 'how do we editorially share more with CNN – how do we bring more of that content through to work in partnership with Newshub?'

"We think that's a very positive thing – we also think that's a positive thing for Sky around reinforcing the CNN channel that's on their platform."

And window for exclusive content on Sky would always be there, he added.

[mistaTea]

Very interesting article in the NBR . Clearly a lot of posters who thought discovery would ditch Sky were wrong.  Insert below

Sky partnership

Some of this content is already being shown on Sky but Warner Bros Discovery (WBD) assured the crowd that it retained a "highly valued and very much-loved partnership with Sky", and later, Glen Kyne, Warner Bros. The Discovery senior VP and head of networks, Australia, NZ and Japan (to use his full title) told NBR the company was in fact "doubling down" on that partnership.

For example, although WBD talked of using more CNN content on Newshub (and presumably vice-versa) "it certainly wasn't taking the CNN channel away from Sky – it's talking about 'how do we editorially share more with CNN – how do we bring more of that content through to work in partnership with Newshub?'

"We think that's a very positive thing – we also think that's a positive thing for Sky around reinforcing the CNN channel that's on their platform."

And window for exclusive content on Sky would always be there, he added.

Nice comments from Glen, and Warner-Discovery is a very important partner for Sky. They are the NZ Rugby of Sky's entertainment content.

And from a Warner-Discovery perspective, of course they will want to have Sky as part of the mix so long as that remains the most profitable route for them.

If the highest earnings for Warner-Discovery still comes from a broad co-exclusive deal with the possibility of Sky paying up to get some content on an exclusive basis, then obviously they will go for it.

But the key point here is that Sky are no longer in the driver seat. WMD have FTA now as well as some compelling OTT offerings. HBOMAX with Discovery content will be a competitive offering compared to Netflix, Amazon Prime etc.

Clearly Sky need to keep this partnership going, but all I see is an expensive renewal with questionable ROI.

Or maybe I am wrong and Glen just loves Sky TV so much and will give them a sweet deal! Ha!

[Mysterion]

Some of this content is already being shown on Sky but Warner Bros Discovery (WBD) assured the crowd that it retained a "highly valued and very much-loved partnership with Sky", and later, Glen Kyne, Warner Bros. The Discovery senior VP and head of networks, Australia, NZ and Japan (to use his full title) told NBR the company was in fact "doubling down" on that partnership.

partnership
double down
highly valued
TAKEOVER HAPPENING!!!

[mistaTea]

https://www.nzherald.co.nz/business/tv-sky-box-latest-apples-global-soccer-deal-includes-nz/MT5WZZRPBRHLHGM7YPWIFLT2DI/

[Mysterion]

https://www.nzherald.co.nz/business/tv-sky-box-latest-apples-global-soccer-deal-includes-nz/MT5WZZRPBRHLHGM7YPWIFLT2DI/

Luckily nobody cares about this new Sky box so it's not a problem.

[Mysterion]

Accumulation happening right after cash return

=

T**E O**R

[Mysterion]

Price / earnings ratio: 5.39x



MistaTea explaining why the PE is bad

[mistaTea]

Price / earnings ratio: 5.39x



MistaTea explaining why the PE is bad

Well sure, PAST earnings.

Market will value a business on its FUTURE prospects. Not what it earned last year.