SKT - Sky Network Television

[Teitei]

mistaTea checking the stock price today

Just wait until it hits $3.00! Morningstar valuation 

[Mysterion]

[Mysterion]

[Mysterion]

[Mysterion]

[Mysterion]

[mistaTea]

Not as much excitement about the ASX today for some odd reason.

[Teitei]

Not as much excitement about the ASX today for some odd reason.

Powering on - $2.70 target next.

Word has got out on a share buyback?

[winner (n)]

Powering on - $2.70 target next.

Word has got out on a share buyback?

The old share buy back trick eh the illusion of riches

[Teitei]

The old share buy back trick eh the illusion of riches

But of course, W69.

What's the point of any company generating huge cashflow sitting on too much cash?

[mistaTea]

But of course, W69.

What's the point of any company generating huge cashflow sitting on too much cash?

Dunno. Maybe to invest the cash in a way that has a chance of growing the business as opposed to playing smoke and mirrors with EPS?

[Teitei]

Dunno. Maybe to invest the cash in a way that has a chance of growing the business as opposed to playing smoke and mirrors with EPS?

Bit emotive there,MT.

Share buyback is an accepted strategy for enhancing EPS when the sp of a company is trading well below intrinsic value.

But don't take words for it - here's Warren Buffett extolling the virtue of share buyback.

https://www.cnbc.com/2018/08/31/warren-buffett-explains-the-enduring-power-of-stock-buybacks.html

[mistaTea]

Bit emotive there,MT.

Share buyback is an accepted strategy for enhancing EPS when the sp of a company is trading well below intrinsic value.

But don't take words for it - here's Warren Buffett extolling the virtue of share buyback.

https://www.cnbc.com/2018/08/31/warren-buffett-explains-the-enduring-power-of-stock-buybacks.html

Buffett only loves buybacks when a company is rock solid and has no other feasible use of the excess cash it throws off AND the SP is below his estimate of intrinsic value.

None of that is true for sky tv nz.

[Teitei]

Buffett only loves buybacks when a company is rock solid and has no other feasible use of the excess cash it throws off AND the SP is below his estimate of intrinsic value.

None of that is true for sky tv nz.

Your opinion which so far has been defied by the rising sp.

[mistaTea]

Your opinion which so far has been defied by the rising sp.

Yes absolutely just my opinion, but in why respect has my opinion been defied? Quoted value per share increase? Sure.

But market cap? That is still lower than before the capital return. So it's largely smoke and mirrors as shareholders who have stuck around from before the CR own lees shares.

So yes, they can keep returning cash with a buyback etc- but until they demonstrate a feasible GROWTH plan it is hard to see the market cap trending anyway but down.

Of course I could be wrong. But I don't know think anything has happened since the capital return (thus far anyway) that warrants the endorphins flowing.

Well, Spark Sport exiting is good for sure. And should mean any negotiations sky have with NZR are a formality - but that doesn't mean content costs will go down unfortunately.

Now that they seem set on remaining merely a content aggregator - it is hard to see realistic growth.

I think a buyback will potentially benefit traders - but anyone who is planning to own the business long term (like Buffett) will not be much better off over the long run (and I expect, will actually end up worse off).