Short Term Trading Week Starting: 8th May, page-61

STTCOMP PRT, FA Long

Owner of regional television stations Prime7 and GWN

Mcap 124.6m @ 34c, Cash $6.5m, Debt $55.4m, Ev $173.4m, Top 20 71.5%

Already up 11.5% on Monday due proposed reforms to Australia's '2 out of 3 rule' which amongst other things prevents commercial television stations from reaching in excess of 75% of the Australian population.

Although it is in a unloved industry with diminishing returns, this is a profitable company with good potential for anyone who already has bought content. Guidance has a FY17 P/E of 4.08, my projected EV/EBITDA is 3.07 and dividend yield of around 9.7% grossed up. I believe one of the larger networks (SWM) will buy this if the reforms get through. Tip is based on traders speculating driving the share price up by another 25%.

On TA front it gapped up on open yesterday , it also broke out but wouldn't say it was on high volume.