Actually i asked a question about earnings and takeover offer etc in one of my previous posts... I did some back of the envelop calculation...(Actually here i am doing the opposite way of buying a stock and then researching about it...:-( )
Based on their recent announcements, I get a cash backing of 72c per share... After the div and share buyback the cash position will go 49c per share...With only fox and PMG left in the staples and they have indicated they received cash distribution of 50mil from Foxtel and 45 million from PMG...so the total distribution they have received is $95mil
If I assume they receive the similar amounts for next year and the total shares outstanding at ~620mil that gives ~15c per share... at the current sp of 3$ the PE multiple becomes ~19 (excluding the cash component)...
OK one final touch... i'm just trying to justify my (stupid or brilliant) idea to buy them yesterday.... also i regret my selling of 20K units at 2.20 not long ago...but lucky me i just have a small portion now...i'll watch with interest how this plays out in next week... the present action looks like we have built a wall at 3.08-3.10...
Cheers PMT
CMJ Price at posting:
$3.06 Sentiment: None Disclosure: Held
