SXL Time to Accumulate, page-620

As mentioned in another thread, I am now out and on the sidelines again.

It will take a few weeks for all the brokers to update their consensus forecasts and for this to feed into the 'macro screening' charts.

The final dividend was VERY disappointing, but wise from the company's point of view.
Disappointing because it implies company needs to reserve cash, wise because new CEO has acted quickly (better than another dilutionary capital raise for which SXL is famous for).

SXL really needs to start profitably growing its digital media. This is costing alot of money, and the losses are acting as a drag on other profitable sections of the business. I understand the need to grow this sector (it represents the future), but losses are losses. Hopefully their talk about being EBITDA profitable by last quarter of this financial year is true!! (and remember this is EBITDA profit, not real profit!!)

Their decision to switch from chanel9 to chanel 10 for their regional TV is proving disastrous. channel 10 is just going backwards. They should have begged and pleaded to be the regional representative for either channel 7 or channel 9. All channel 10 does is replay their existing stock of old US shows.

Debt creeping up again (hence why the big cut to dividends).

Back on the sidelines, and will watch, luckily I sold hard and fast, so losses are quite small relatively speaking.

Damm this is a difficult stock to invest in!!!