To be clear, though, I think they will reinstate the dividend. I think that will drive the stock back up to 60c in the short-term. As stated previously I think Goldmans were behind the shake-out in the stock, to build a position in it on their proprietary trading desk, knowing that whilst a proportion of their earnings are cyclical (nice argument to pedal), but the stock is in a much healthier position now than for many years - BVOD a very material contributor and growing (what price as a stand-alone income stream?), strong balance sheet, leading position again in TV, highly cash-generative (very important in a rising interest-rate environment), leaner cost base, now being remunerated by leading social media platforms for content etc etc.
The stock was driven to a market cap of $490m in early June. Net debt at what at present? Likely $270m or less at a guess. Implied EV $760m then, about $1b now. They will show in the results IMO that they are making $350m of quite stable EBITDA. Way too cheap. This is a cash-generative business! NOT a business that has a material capex burden. Quite the opposite. It should be trading at 60c plus right now and IMO the results will take it there.
DYOR
SWM Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)