Ann: Becoming a substantial holder-PRT.AX, page-3

Share price continues to slide on large volume today.

I think that everyone can agree that the current share price is undervalued if forecast core net profit after tax comes in at the estimated 23 to 24.5M they have forecasted. This works out at over 6 cents earnings per share.

So why aren't people buying PRT if it is undervalued?

Answer: Free to air TV is considered 'old media' and will continue to lose advertising market share and revenue will continue to decline.

If this is true then PRT and other media stocks are probably close to fair value.

My view on things though is that the whole concept of viewers turning their backs on 'old media' is completely over done. My problem though is that I am not a trend seeker and do not usually follow the heard so I may completely be wrong.

I am in my 40s and still watch free to air TV. My parents still watch free to air TV and I know very few people that pay for TV. I am also on the internet a lot more than I sit in front of the TV but if I was asked to recall any advertisements that I have recently seen I would be lucky to name one that I have seen while surfing online. Normally I just click on the close box as soon as I get a chance or it is on a page that has so many adverts that you just ignore them all anyway, (other than those shown on HC of course ).

I have been slowly accumulating stock in PRT over the last few weeks. I see the whole media sell off as being overdone but would be very interested in other posters view in regards to how they see the future of advertising on free to air tv. Maybe there is a poster out there that works in the advertising industry with more of an insiders view on what the future in advertising holds.

Another reason for the continuous slide in revenue could also simply be the downturn in the economy and therefore companies have simply reduced their advertising market spend. If this is the case then this is only a cyclical downturn for PRT and the revenue reductions may only be temporary. In which case this would make PRT a good long term buy at the current share price.

Looking forward to hearing any thoughts from other posters.