SWM - Seven West Media

[McLovin]

If SWM is struggling then God knows what things are like down at TCN 9. Should we start a 9 Deathwatch thread?

 

[notting]

19% fully franked yield anybody?
(I know)

 

[JTLP]

Just had a quick look at SWM - quite a lot of directors buying up over the recent months. Now I'm not saying this is a tell tale sign of good news and directors do get it wrong...however CCP's management bought big and look where they sit now.

Advertising revenue may be declining and the world may be on the brink but if they could turn things around this could be a decent time to get in...

 

[Gundini]

Correct me if I am wrong, but from what I see:

Total Assets ($568M) = Total Liabilities ($567M)

So, isn't this company effectively broke?

 

[nulla nulla]

Correct me if I am wrong, but from what I see:

Total Assets ($568M) = Total Liabilities ($567M)

So, isn't this company effectively broke?

$568m
($567m)
$1m

What more do you want? $1.00 million unencumbered assets, leverage it like Bondy and you are a billionaire. some people can't see the trees for the wood.

 

[skc]

Correct me if I am wrong, but from what I see:

Total Assets ($568M) = Total Liabilities ($567M)

So, isn't this company effectively broke?

AUN had negative equity but it was taken over for >$1b. I think media company's accounting consists of plenty of intangibles which can be written down easily but not written back up or something like that.

 

[Gundini]

$568m
($567m)
$1m

Haha, surely you jest....

and with the first interest payment for the debt being $50,606,000, they should be solid for about a week lol...

Sorry, just saw your post skc, yes I'm sure there is some creative accounting involved...

 

[McLovin]

Correct me if I am wrong, but from what I see:

Total Assets ($568M) = Total Liabilities ($567M)

So, isn't this company effectively broke?

You're wrong. I have no idea what company you are looking at but SWM has $5b in assets and $2.3b in liabilities.

Gneerally though, negative assets does not mean a company is broke. Only when they can no longer pay their liabilities are they broke.

 

[skc]

You're wrong. I have no idea what company you are looking at but SWM has $5b in assets and $2.3b in liabilities.

Gneerally though, negative assets does not mean a company is broke. Only when they can no longer pay their liabilities are they broke.

They were current asset and current liabilities from FY11. Non-currents were not included.

 

[Garpal Gumnut]

I made a decent profit from SWM earlier this year before it tanked, more through luck than analysis, gut feeling than evidence.

Looking at a 5 year chart it is a very sick puppy.

Citizens buying at it's height at $16 would be feeling pretty sick tonight as it languishes at $2.09.

A divi is a divi, but this is a falling asset and the divi only goes up because it's capital value has deteriorated.

I would avoid at present.

I may reconsider if it gets back to $4 and goes over on volume.

gg

 

[prawn_86]

Rumours out today about an upcoming capital raising. I heard it on skyBusiness but i'm sure there are pletny of written articles about it also.

Anyone holding or following this?

 

[skc]

Rumours out today about an upcoming capital raising. I heard it on skyBusiness but i'm sure there are pletny of written articles about it also.

Anyone holding or following this?

Crazy to think that these guys paid $300m in dividends over the last 12 months. That's 30% of their current market cap FFS. They must have done their capital planning on "Things will improve greatly and quickly, and internet will not be relevant in 12 months time" or something like that.

 

[pixel]

Crazy to think that these guys paid $300m in dividends over the last 12 months. That's 30% of their current market cap FFS. They must have done their capital planning on "Things will improve greatly and quickly, and internet will not be relevant in 12 months time" or something like that.

Not quite like that, skc:
They did make the profit last year, and by their constitution and standing policy as promised in preceding AGMs, they had to distribute a set percentage of the profit via dividend.
As is so often the case, past performance is no guarantee for the future.

I do feel sorry for WAN employees though, who were issued staff shares at only a small discount to contemporary vwap. Fancy sitting on 10,000 escrowed shares that you paid $5, $6, or even over $10 for?

 

[notting]

The price is in stupid territory.
Maybe they should start printing some left wing stuff and spying on Gina's children, to get an offer on the table.

 

[skc]

Not quite like that, skc:
They did make the profit last year, and by their constitution and standing policy as promised in preceding AGMs, they had to distribute a set percentage of the profit via dividend.
As is so often the case, past performance is no guarantee for the future.

I do feel sorry for WAN employees though, who were issued staff shares at only a small discount to contemporary vwap. Fancy sitting on 10,000 escrowed shares that you paid $5, $6, or even over $10 for?

As far as I know, dividend is always discretionary for the board. There are dividend policies that guides the Board's decision, but I am pretty sure there's no constitution that says they must pay dividend. They may promise certain things at AGMs - but that is not legally binding. Companies promise all sorts of stuff all the time...

This from p.81 of the annual report.

(G) CAPITAL RISK MANAGEMENT
The Group's and the Parent Entity's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

 

[prawn_86]

Looking to raise 440m to help retire debt with a 1:2 entitlement offer at an 18% discount to Fridays price...

 

[Sergio]

SWM just go ex div on 8th of March..since then, it keep going north, even on ex div date, it maintain it position..

any thought how could this be happening?

cheers =]

sergio

 

[PinguPingu]

Manu's magic at work?

Probably more so 'the worst is all behind us', their cooking shows have had major success, new management looks like they are in fact trying to adapt to the change in audience viewing. Fango is still rubbish though, but its a start.

 

[piggybank]

Daily Update - Although it would have meant more had I posted it a few days ago....

 

[notting]

Mr Ryan Stokes will assume the role of Managing Director & Chief Executive Officer of Seven Group Holdings on 1 July 2015.

Shares off by 4.5%

Guess that's a no vote for Mini Me.