Already under pressure in recent days, the stock got clobbered some more today: -5.5% vs. the S&P/ASX +0.5%.
Are we about to receive a negative trading update? Are viewer numbers slipping more quickly than forecast? Is Netflix penetrating even faster than predicted? Or is today's share price decline simply attributable to heavy selling by an impatient institution or two? Or something else?
The stock responded well to recent news of the sale of the Southern Cross stake. A bit more favorable news flow along those same lines wouldn't go astray, especially an announcement that reflects efforts to build a more sustainable business structure.
With the dividend now banked, my total return since initially entering the stock several months ago is -11%, a disappointing performance vs. the market (broadly unchanged). I am holding for the time being.
The dividend remains attractive, even if lowered slightly.
Any thoughts welcome.
NEC Price at posting:
86.0¢ Sentiment: Hold Disclosure: Held
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