Ouch! But still holding..., page-11

Labour has already signalled their support on fee change. NEC's next challenge is to grow into an original content machine beyond sport. Media in the 21st century will have multiple distribution channels; fta, svod, radio and Internet streaming. Without content to attract the eyes and ears, the advertisers will not come either. Yep, NEC needs a reincarnation post Time Warner like no other. Not that NEC is not on the path already and the strategy is there too, which is pleasing. The current SP reflects the ebb and flow of TV ratings and at present, NEC is off their peak. This can affect the top line but nothing like the beating the SP has suffered...at base P/E of about 7 excl. exceptional items I'm in shock!

I like NEC at these prices and am preparing to enter onto the register. I do see some further market weakness leading up to the Q1 update, which I am hoping to hear about at the AGM on 15 November. I expect revenue to be down again and as I've seen with SXL, who I've owned or years, it takes time for the strategy and tactics to monetise. Another key question is whether the current management can do the job required , and on that question I am not sure. Either way, it's current management or that of a predator, but eventually NEC will be on the path. I have a 12-24 month investment horizon and see NEC strengthening or being taken out sometime post the Reach and 2/3 rules.