I feel that TEN is due for vindication. I've said before that the structural headwinds of the broadcast television business have become incrementally less relevant to a value proposition as the share price has tumbled. Indeed, its a fundamentally different playing field at <20c than it was at 50c/80c/$1/etc.
The management at Ten have done very competent work over the past few years to claw back audience share. They've developed new, high-quality shows and rejuvenated other stalwart franchises. This was something materially lacking when the share-price originally began to plummet amidst the likes of Paul Henry.
While there is much work to be done to sure up the company on a financial level, the first step is seeing an uptick in profit and revenue, which is ultimately pegged to audience share – something we have tangible evidence of an improvement in.
As always, DYOR and it's important that this stock is not for the faint hearted - but my opinion is that Ten has well and truly been punished for its shortcomings of old, but yet, the hard work and good results of late has not been sufficiently priced into the SP by the market.
While I have lost money in the stock (having got in around the 30c point), i've taken the opportunity to average down recently.
TEN Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
