Showing posts with label Sky Television. Show all posts
Showing posts with label Sky Television. Show all posts

Thursday, August 6, 2009

Bruce Sheppard's debt debate points the finger at you


Bruce Sheppard's crusade on NZX listed companies and their debt levels has apparently come to an end but what has it achieved?

Well, it is always good to get frank and open debate about our listed companies, because if you have been reading my comments over the years the NZX and their mates are almost a closed shop as far as communication and disclosure are concerned.

Bruce also highlighted several companies that have either collapsed or a sailing very close to the wind in terms of their debt levels; Cadmus-Provenco, Nuplex Ltd [NPX.NX], Fisher & Paykel Appliances [FPA.NZ] and more.

The non-reply's to Bruce's letters from Sky Network Television [SKT.NZ] and Team Talk reveal more about respective company management and poor attitude to shareholders apart from a possible debt problem.

Nothing substantive in terms of conclusions were made by Bruce but he quite rightly puts the responsibility back on individual investors to do their own homework:

Just as I and the SA are prepared to be judged by what we do, right or wrong, well or badly, so too should companies be judged. So rather than me analysing the responses in detail or providing you with any guidance on the strength or weakness of the companies written to, you must do this for yourself by reading our letters and their replies.

The companies were on my list because I thought, and still think, they have too much debt and are at risk in an economy such as this. That is my prerogative, you will each have your own risk profiles and you will each analyse the prospects and debt profile of these companies for yourself. It is my view that debt is the number one risk faced by equity investors today and that is why I did this work. 

Read the full conclusion @ Stirring the Pot

Why am I interested in Bruce's opinion so much on such matters?

Well, I mostly like what he says, he stimulates debate and he is an influential person.

The main point of Bruce's debt exercise? Looking at issues like debt, company management and company performance are essential when investing and should be done by you dear reader.

Oh, and he also finally disclosed ownership of shares in a couple of companies.



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Market Quickie: Sky TV Worth Watching




I have given Sky Network Television [SKT.NZ] a very wide birth over the years, I have never really understood a company that spent more than 10 years losing money and has only been making it for the last 3 or 4.

I guess they were building up a business?

I don't like its business model; a company that relies on continuous large amounts of capital to keep competition at bay doesn't make for a good long term return.

Sky is also at the mercy of Government regulation, currency fluctuation, product quality and large capital depreciation.

What I do like though (I am such a negative bugger) is that it is a virtual monopoly-in Pay TV terms -but even that is under threat by new technology (which SKY is trying to take a punt on) via the Internet and satellite TV and product.

It hasn't done well over the last year, with a more than 16% drop in profit to just over $NZ42 million in the half year to 31 Dec 2008 on higher revenue of nearly $350 million. This is due to higher capital costs, which I outlined above.

Why the hell then do I mention the company today if I see little redeeming about it in its day to day operations?

I kinda like its share price.

The shares are well off their low of $3.15 during the last 52 weeks but the corollary to that is that they are off their 52 week high of $5.10 and well off their all-time high of $6.75 in late 2006 (see 5 year chart above)

I reckon this company is worth a good short-term to medium term punt.



Sky Network Television @ Share Investor

Watching Sky Television
Market Quickie: Sky TV Worth Watching

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Friday, April 3, 2009

The Headliner: 2 April 2009 Edition


Subscribe to The Headliner @ Headliner.co.nz

Direct from my Mysterious Benefactor comes another edition of one of New Zealand's leading finance papers, The Headliner.

This April 2 edition has a major story on Sky Television [SKT.NZ] and its coming battle with Tivo.


It also covers something I have missed, a foray by Jan Cameron to buy more shares in Postie Plus Group [PPG.NZ] She now owns a whopping 17.75% for a very low total price.

It also skips over retailers Hallenstein Glasson [HLG.NZ] and Briscoe Group [BGR.NZ] with a look at results and future prospects.

Pike River Coal, GPG and Cavalier are also given the once over.

The Headliner has an interesting Portfolio picks section. Here are this edition's picks:

Pike River Coal [PRC.NZ]

Lyttleton Port [LPC.NZ]

Northland Port [NTH.NZ]

F & P Appliances [FPA.NZ]

Just Water [JWI.NZ]

Nothing I would have chosen except perhaps Fisher & Paykel Appliances and only below 20c.

To my mysterious benefactor thank you and please keep them coming.

Disclosure: I own PPG, BGR, & HLG


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