PRT - PRT Company

[italiandragon]

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

 

[italiandragon]

1 month later and the book is now looking good.

Anyone has any opinion at all?

 

[italiandragon]

Ready to take off?

Anyone has any news on PRT?

Looking at the chart:

it is creatring a decent trendline upwards

Cheers

 

[italiandragon]

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

$0.79 today?

 

[italiandragon]

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!

 

[RazzaDazzla]

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.

 

[skc]

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.

 

[RazzaDazzla]

Not closed for trading. Just had zero volume.

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

 

[skc]

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

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

 

[tinhat]

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!

 

[tinhat]

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.

 

[Rainman]

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?

 

[ThirtysixD]

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

 

[tinhat]

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?

 

[Rainman]

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.

 

[Rainman]

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.

 

[Rainman]

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.

 

[Triathlete]

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".

 

[Rainman]

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.

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.

 

[systematic]

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?