Good to see someone acting on the value when so many others who were confidently predicting a $1 share price are now hesitant at 34c because of a forecast turn in the ad cycle. Well, funnily enough the ad market is cyclical and always had been, so needed to be factored in 4 weeks ago, just as it does now. Remember, since the last cycle top the company has taken out huge $ costs and grown BVOD ebitda to very significant levels, as well as paying down $400m or so in debt. If you think a suspected turn in ad rates is worth a 47 percent ($480m) fall in the stock price then sit on the sidelines. Capitalised at 3.5x that suggests a decline of nearly $140m in ebitda, which from memory means substantially all the tv ad ebitda wiped out. That isn’t going to happen, and IF you agree with me, this is a stellar investment opportunity
SWM Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)