When does this stock become a buy seriously... TA looks ordinary but on lower volumes..
Morningstar fair value is $1.50. Currently in the accumulation category. It would be in the buy zone at 75c and below..
TEN reported FY16 EBITDA of $3.4m, up from a loss of $12.8m in FY15. We have no guidance of FY17, but we do know that there were BBL record audiences that surely must correlate to advertising revenues.
Now curiously we had an update on 28th January 2016 saying revenue in first half of 2016 jumped 12%, yet complete radio silence this time round. All we have to go by is television revenue growth of 1.9% in first quarter of Fy2017 (AGM Presentation)
Could there be a deliberate strategy by the board to be quiet and paint a dire picture in order to get the licensing fee (3.38%) down. We won't know until it reports in April, but I think there's a case to be made to buy some on the cheap, but the question is when? As I've just said elsewhere, it appears the bernardi defection puts the media reform legislation in an even harder basket...
But putting this to one side, clearly this is a business in the midst of a turnaround with a register deep with people who aren't in this to lose money. MCN, Rinehart, even Seven Group hold a few. This is a business that is shedding down it's debt and will become profitable in the medium-long term, whether you agree about FTA or not, I think this warrants serious review....
TEN Price at posting:
85.0¢ Sentiment: None Disclosure: Not Held
