Print media is a sunset industry. Strongest as The Star also bit the bullets. They are using USD to buy raw papers and losing the younger genaration readers.
One big advantage can turnaround their bottom lines overnite»increase the newspapers cover prices by $0.20. Same strategy as Astro pratising because the readers price elasticity is very low.
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.
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vinext
117 posts
Posted by vinext > 2015-07-07 14:36 | Report Abuse
it wil be back,but crazy analysis/ wrong reason