The price dive of late has me completely baffled - we had three good presentations on MCG and related entities with encouraging earnings outlooks and assurance of business stability.
Yesterdays prices were yielding a 17.4% dividend earnings, to me the selling seemed way overdone. I was wondering if it was a US institution unloading without understanding the business model?
In the USA, most media is Private and free to air TV is migrating to cable. This is not the case in Australia and the UK where we have the privilege of public broadcasting networks which appear will be present for some time yet. MCG has long term contracts and largely assured income streams. So why has it been so heavily sold down? In a market of great uncertainty I would of expected a sound business with assured earnings and minimal risk to escalating commodity rises would be well supported.
MCG
macquarie communications infrastructure group
