Hi guys I was thinking that FXJ may truly be a true take over target as suggested a number of times and most recently in today's fin review . The reasons why I think so are they some reasons hwy this is a strong buy
- its assets eclipse market cap by a multiple of 2.5 x 3 - it has a resilient business - rural press generating strong cash flow and EBIT - it has one big succeful digital business - trade me , which if sold would cover 90% of debt - it has a massive media business that as Lazard says slits out lots of cash - its assets are strategic and valuable - it has potential to save a lot more costs through a JV with APN on printing presses - it has a large and growing insto base that a re- entering and seeing value - it is cheap at the bottom of an advertising cycle therefore its reveneu will grow as cycle picks up - at best most companies are saying cycle has bottomed It's biggest shareholder is a lady of strong conviction and I assume she will want to see a gain in the end for her shareholding and the best way to do that is buy the thing outright and break up imo
In a personal note I realised how important digital will be when I had the physical age sitting on my kitchen table and I was using my iPad to read it online - funinily I like the fin review on paper and the age online as I can easily manoeuvre through the sections
At these prices its a steal IMO as downside seems very limited now that sentiment and TA has also turned positive
FXJ Price at posting:
43.0¢ Sentiment: LT Buy Disclosure: Held
