Bulls vs. Bears

I have been looking at PRT for a few days now, looking over their past financials, trying to come to a decision to purchase or not.  So far it is in the "too hard" basket.

This morning for kicks (yes, I know how to live it up on a Saturday!) I sat down and mapped out the bull vs. bear case.  Below is where I got to.

Bulls

• PE ratio:  Very low, screaming buy
• Dividend:  High yield, screaming buy
• Debt:  Being significantly paid down from earnings, dividend reduced this year to pay down more debt
• Earnings:  Stable earnings over time
• Regulatory:  Media laws will change in PRT favour soon
• New world media threat over stated, still a place for old world media along side Google, Youtube, Facebook, streaming etc.  Regional content will be protected
• Zingy quote:  "Be fearful when others are greedy and greedy when others are fearful" - Warren Buffet.  People are definitely fearful now.

Bears

• PE ratio:  Earnings in decline, therefore past PE is irrelevant
• Dividend:  Declining, past yield does not guarantee future yield
• Debt:  Still too much debt given declining revenue
• Earnings:  In decline, dropped 18 million from 2015 to 2016
• Regulatory:  Canberra talking about changing laws for a long time, no guarantee it will happen anytime soon
• New world advertising and internet streaming will kill off PRT business model
• Zingy quote:  "Generally speaking, it pays to stay away from declining businesses. They are very difficult to value." -  Warren Buffet.  I remember a quote from Charlie Munger about not being able to pay too low a price for a business in decline, but I can't find it right now.