Not good le. In my opinion, better dun invest in sunset business. Another share also similiar to this is umsngb. Also sunset business. Also keep saving cost but revenue keep on decrease year by year. Although the profit increase and PE ratio low not recommended to invest in this kind of shares. Once the industry totally went off, it is hard to recover your money. Just my opinion
i like it when everyone is so pessimistic, make it sounds like a road-kill. A DCF with 0% growth and 10% discount rate will get you $0.60 using EPS of 0.06, which is consider really low compare to the past 4-5 years EPS. ROE accelerating. Throwing oof FCF 130-180 million each year.
Several people have commented on this article. Most are pessimistic, JT Yeo is the first one with a contrarian view.
I am kind of in the middle - concur with the view that the industry is under threat by new players, but refused to give up until I see more concrete signs that this is indeed an irreversible structural decline instead of due to cyclicality
as for optimus, as usual, his comments are hollow and no substance. Difficult to take them seriously.
I think if you extrapolate then perhaps it is correct it is sunset business, young generation doesn't subscribe to newspapers anymore or less likely, whether they will do it when they gets old who knows.
The investment can be a successful ones if:
1. These 'sunset' expectation has totally been priced in or overpriced in, which present a relatively low downside risk, but potential high probability upside surprise.
2. The 'sun' actually 'set' slower than many thought, allowing mediac to continue to throw off cash and transition their business away from news print, which they are already doing.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....