Yeah, the market cap is currently 1.8 times projected EBITDA.
I knew the sentiment towards Sky was not positive, but the market reaction and sustained low market valuation has shocked me.
Underlying Owner Earnings are still projected to be $70M-$80M and broadband is about to be released (seen as a good move by most, even if it is a late entry).
I would prefer a buyback at these low prices, but I wonder if the board are considering a divvy at the HY results since earnings are higher than initially projected. Reinstatement of a dividend 'should' have a material impact on lifting the SP.
I do believe that a takeover of Sky is much more likely in 2021. I make no predictions in this area, but with the amount of cheap money out there now looking for a home as Covid now seems to have reached the beginning of the end...Sky has got to be a target with the ridiculously low SP right now.
The Board need to do whatever they can to lift the SP so that shareholders are not taken advantage of imo.
SKT Price at posting:
15.0¢ 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)