# PRT - PRT Company



## italiandragon (29 October 2009)

Hi everyone.

This stocks surprises me. Out of all I have, it`s the only it does not go down.

To be totally upfront and honest, I bought a few shares earlier this year, just after the equity rising (done at $0.48) and I paid $0.55 for them.

Now its trading around $0.80 cents.

I tried to search more to understand if I`m on a great long term good horse or not and this is what I found:

There are just 1,606 shareholders hence volumes are usually low.

Somewhere this year I read that there was a share buyback from the company which is supporting the recovery of the price but I can`t find anywhere about it, would love to know more from others.
I`m not here to pump the stock but rather trying to get more opinions because I`m still new to the ASX, while I have been an expert trader overseas.

I  am attaching here some of the relevant datas which you can download from the ASX anyway on the PRT page.

Thank you


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## italiandragon (2 December 2009)

1 month later and the book is now looking good.

Anyone has any opinion at all?


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## italiandragon (10 December 2009)

Ready to take off?

Anyone has any news on PRT?








Looking at the chart:






it is creatring a decent trendline upwards

Cheers


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## italiandragon (16 December 2009)

this is going to be funny, some more and there won`t be any shares for sale 







$0.79 today?


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## italiandragon (23 December 2009)

Hi, Merry Christmas everyone!

Today we had a max of 0.81 cents. 

Hopefully 2010 will see this company back to its original values!

Have a good one!


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## RazzaDazzla (24 September 2012)

What's news on PRT?

It's been closed for trading for last 2 or 3 trading days or am I mis-reading my screens? I couldn't see any news announcements for it.


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## skc (24 September 2012)

RazzaDazzla said:


> What's news on PRT?
> 
> It's been closed for trading for last 2 or 3 trading days or am I mis-reading my screens? I couldn't see any news announcements for it.




Not closed for trading. Just had zero volume.


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## RazzaDazzla (24 September 2012)

skc said:


> Not closed for trading. Just had zero volume.




Wow, that's what you call illiquid hey?!


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## skc (24 September 2012)

RazzaDazzla said:


> Wow, that's what you call illiquid hey?!




It's only 2 days. Some don't trade for months at a time...


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## tinhat (28 March 2014)

Seems like a decent income stock for those who can take advantage of franking credits. Not much in the way of growth prospects but 10% grossed up dividend with a stable outlook should help my Mum's SMSF pension account along. I've averaged in over the last few months at $1. The news that the chairman, Paul Ramsey has sold his 30% holding for just 87c per share (and that he is seeking to retire as chairman) probably accounts for the dip in share price. Wish I had bought at the bottom!


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## tinhat (9 May 2014)

PRT share price seems to be recovering from the announced sale of Paul Ramsay's one-third holding in the company back in March at what seemed like a fire-sale price of 87c per share. News of his ill health and his subsequent death and donation of all his money into philanthropic trust puts everything into perspective. I only wish I had bought at the 90c level.


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## Rainman (3 December 2015)

I think PRT could get a nice pop if the Coalition makes good on its prior promises and repeals a lot of the restrictive old media laws.  

There is probably very little growth in PRT.  But it has the contours of a nice trade.  It is trading at fairly depressed levels, so the downside seems fairly limited while the upside, in the form of the catalyst that repeal of the media ownership laws will entail, is fairly open.  In the meantime, one gets paid a very healthy dividend for waiting.  

What do others think?


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## ThirtysixD (3 December 2015)

Rainman said:


> I think PRT could get a nice pop if the Coalition makes good on its prior promises and repeals a lot of the restrictive old media laws.
> 
> There is probably very little growth in PRT.  But it has the contours of a nice trade.  It is trading at fairly depressed levels, so the downside seems fairly limited while the upside, in the form of the catalyst that repeal of the media ownership laws will entail, is fairly open.  In the meantime, one gets paid a very healthy dividend for waiting.
> 
> What do others think?




spot on

margins pretty good vs peers


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## tinhat (4 December 2015)

Rainman said:


> I think PRT could get a nice pop if the Coalition makes good on its prior promises and repeals a lot of the restrictive old media laws.
> 
> There is probably very little growth in PRT.  But it has the contours of a nice trade.  It is trading at fairly depressed levels, so the downside seems fairly limited while the upside, in the form of the catalyst that repeal of the media ownership laws will entail, is fairly open.  In the meantime, one gets paid a very healthy dividend for waiting.
> 
> What do others think?




That was my thinking back when it was $1. Turned out to be a dividend trap and I got out. 50c does seem a bargain but do you want to be involved in a takeover by Kerry Stokes?


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## Rainman (5 December 2015)

tinhat said:


> That was my thinking back when it was $1. Turned out to be a dividend trap and I got out. 50c does seem a bargain but do you want to be involved in a takeover by Kerry Stokes?




I'm not sure.  But I think I'd happily buy the rumour and sell the fact.


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## Rainman (1 January 2016)

The Turnbull government is preparing legislation abolishing the "reach rule" which it will table in the next 3 months: http://www.afr.com/business/telecom...ke-sixmonth-tv-deal-extension-20151230-glx6pb

This is a bullish signal for PRT as, if the legislation passes, it shoulder trigger a wave of merger activity in the sector.   That's the play, anyway.  I'm very long PRT for this reason.  I think at this level and with this news the downside is minimal.

If the merger between WIN and Nine goes ahead, it will also provide a more accurate indication of the sort of price that PRT could fetch in a private market sale.


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## Rainman (1 January 2016)

I might add that if PRT is put into play I think it's got to be worth a private market value of around 7 x 2015 EBITDA which equates to $1.27 per share.  That's a very conservative estimate.  

Either way, this stock has the potential for a 100% gain from current levels quite easily.


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## Triathlete (1 January 2016)

Rainman said:


> The Turnbull government is preparing legislation abolishing the "reach rule" which it will table in the next 3 months: http://www.afr.com/business/telecom...ke-sixmonth-tv-deal-extension-20151230-glx6pb
> 
> This is a bullish signal for PRT as, if the legislation passes, it shoulder trigger a wave of merger activity in the sector.   That's the play, anyway.  I'm very long PRT for this reason.  I think at this level and with this news the downside is minimal.
> 
> If the merger between WIN and Nine goes ahead, it will also provide a more accurate indication of the sort of price that PRT could fetch in a private market sale.





How long have you been following this stock?

What do you think  has stopped this stock from recovering since its fall from 2007?

From the fundamentals it seems to be in a strong financial position at present so you might be right. 

 I personally do not usually jump into illiquid stocks myself but good luck with it anyway, I will keep an eye on it out of curiosity, technically no signs of a move yet but might be soon if you are right about the "legislation".


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## Rainman (1 January 2016)

Triathlete said:


> How long have you been following this stock?




Not long.  A few months perhaps.  It popped up on a screener that I ran and I started researching it.  



Triathlete said:


> What do you think  has stopped this stock from recovering since its fall from 2007?




In 2007, PRT traded in a range of between $3 and $4.  I don't think that the stock is worth anywhere near that now, so it shouldn't return to the levels at which it traded throughout 2007.  But I am confident that the stock is worth more than 0.50 cents and I am confident that a private market buyer would consider it worth more than 0.50 cents as well. 

As to why PRT has fallen to the level that it has, I think there are two main reasons.  The first is that PRT is seen as being "old media" and there are concerns that "old media" is going to be completely replaced by new media businesses.  Those concerns are real but, as always, they have become overblown.  

The second reason is due to the archaic and restrictive media laws in Australia like the "reach rule" (which forbids a metropolitan broadcaster from owning a regional broadcaster).  These laws have made companies like PRT and WIN unattractive to potential acquirers.


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## systematic (15 January 2018)

Having a bit of 'stock picking' fun (outside my plan) and PRT came up as my attempt at a Buffett-esque type of pick.

Anyone analysing this one at the moment?


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## greggles (16 February 2018)

systematic said:


> Having a bit of 'stock picking' fun (outside my plan) and PRT came up as my attempt at a Buffett-esque type of pick.
> 
> Anyone analysing this one at the moment?



Just noticed this one today. After gaining ground from late December 2017 until yesterday, PRT has suffered a setback after releasing its interim financial results for the half-year ended 31 December 2017.

Revenue is down 13.3% on the prior corresponding period, as is EBITDA which is down 22.1%. Operating costs were up 3.5%. The end result is a net loss of $8.6M, decreasing 149.4% on the prior corresponding period.

Prime Media Group's share price is now back to where it was in late December. It is currently 26.5c, down 17.19% so far today.


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## Rainman (16 September 2018)

systematic said:


> ... Anyone analysing this one at the moment?




I have traded in and out of this name a couple of times.  A look at the recent FY 2018 earnings has gotten me interested again.

In the 2018 earnings release, management reported that it was eliminating the dividend.  It also reported that it had reduced total debt from $43.5 million to $25.6 million.  Less cash on the balance sheet, net debt stands at $14.8 million.

PRT's FY 2018 free cash flow was around $29.3 million.  On an enterprise value of $100 million, that's a free cash flow yield of nearly 30%.  On the equity, it's a free cash flow yield of 34%.

With the dividend eliminated, PRT can quite comfortably apply this free cash to completely paying off its debt in 2019? PRT's management has not said that this is what it plans to do.  But it is clear from the fact that the board has eliminated the dividend that management and the board have made deleveraging the business a priority.  What is this going to do to the equity?

The market values PRT's equity presently at $86 million.  Free-to-air broadcasting is a declining business.  The future looks even bleaker for a rural broadcaster like PRT.  But the fact that free-to-air broadcasting is a declining business doesn't mean that PRT won't throw off generous amounts of cash in the meantime.  It just means that trying to predict PRT's future cash flows will be accompanied with a degree of uncertainty.  The question is: can we make allowance for that?

Just say PRT's free cash flow declines by 15% for the next 3 years.  Say also that over that period PRT pays down each year $4.93 million of debt so that by the start of 2022 it is debt-free.  Assume maintenance CapEx remains stable at around $3.6 million annually.

At the end of the 3 year period, PRT has returned to you over $47.5 million (after principal payments) and left you with a debt-free business that, at the start of 2022, continues to throw off $16.3 million in free cash.

The present value of $47.5 million + $16.3 million at a 15% discount rate over 4 years is $36.5 million.  On an initial investment of $86 million (PRT's market cap as at the close of 14 September 2018), that is a 42.4% return.  Less the free cash returned to you by the end of year 4, your $22.2 million principal is still earning $13.9 million in free cash or a 62% return.

The bottom line is that PRT eventually turns into a cash cow - a slowly dissolving cash cow, admittedly, but a cash cow nonetheless.


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## So_Cynical (16 September 2018)

The NBN should kill it, no one watches TV anymore.


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## Rainman (16 September 2018)

So_Cynical said:


> ... no one watches TV anymore.




That is false.


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## galumay (16 September 2018)

Especially rural & regional Oz, TV still has its place. Advertisers still spend on TV advertising in that market, may be something in there @Rainman !


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## System (11 January 2022)

On January 11th, 2022, Prime Media Group Limited changed its name to PRT Company Limited.


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## Dona Ferentes (11 January 2022)

whether free to air TV has a place or not, the sector is a turbulent one. But some of the ratings numbers are truly underwhelming.


> _SWM strongly believes in the rationale of a combined SWM/ PRT Business, which will create the leading wholly owned commercial premium broadcast, video and news network across Australia, reaching more than 90% of the Australian population every month.   _


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