Smg Share Discussion Threads

[maestro4] 06/11/2007 10:20

15p right issue, price will fall down to that level eventually...

[angel of the north] 06/11/2007 09:48

Already a disappointed holder - but maybe this is the time to double my stake and wait for the good times to roll?
06/11/2007 09:36 MARKET TALK: SMG Seen Attractive In Medium Term

0936 GMT [Dow Jones] Providing SMG's (SMG.LN) rights issue goes through, it could be an attractive medium-term recovery play, says Kaupthing analyst Johnathan Barrett. This follows SMG's announcement that it plans to raise GBP95.1M via a rights issue. Also notes that post-deal debt of GBP40.3M is expected to be refinanced following this rights issue and should achieve better terms. "SMG could finally be coming out of its six-year storm and be able to focus on business rather than debt," he says. Shares -15% at 24p. (KHO) Contact us in London. [phone] [e-mail]

(END) Dow Jones Newswires

November 06, 2007 04:36 ET (09:36 GMT)

[cleudo] 31/10/2007 23:36

what - a 34% rise in three days is slow???

[flangefighter] 31/10/2007 16:52

slowly, slowly, catchy monkey.

[ards] 25/10/2007 13:39

SMG reeling as shares slump after criticism
TERRY MURDEN BUSINESS AND CITY EDITOR

SMG is maintaining a "business as usual" response to a collapse in its share price that has left the company worth little more than it was hoping to get from the sale or flotation of Virgin Radio.

A bearish analyst's report on the media sector was blamed for a slump in the shares to a close of just 27.75p, valuing the company at £88m. SMG was pinning its hopes on selling Virgin Radio for between £60m and £75m to help clear its debts.

Rob Woodward, who was installed as chief executive in a boardroom coup in the spring, wants to create a business focused around television, but he has been hindered by the crisis in the financial markets which forced the postponement of the flotation, and subsequent sale, of Virgin Radio.

The circular from Numis Securities' analysts Lorna Tilbian and Paul Richards, published on Thursday, identified free-to-air broadcasters in television and radio, such as SMG, ITV and GCap (owner of Capital Radio and Xfm), as most vulnerable to another downturn in equities.

"Groups in this sub-sector are early cycle, operationally geared, face structural challenges, carry debt and are highly rated," says the note.

"We believe there are material structural threats to free-to-air broadcasters, both in television and radio. In our view, the outlook for subscription services is much brighter, with more homes continuing to take digital television ahead of analogue switch-off in 2008-12."

Although UTV shares some of the characteristics of the other free-to-air companies, its lower rating is likely to lessen the impact on its shares. Even so, UTV's shares also fell last week.

Using a sum-of-the-parts valuation, Numis values SMG at 36p a share. "We view SMG as a high risk investment due to its highly geared balance sheet, which necessitates the disposal of Virgin Radio to bring debt down to a manageable level," it says.

One source familiar with SMG admitted that the note had caused a shock to the shares, but he said the underlying value of SMG was being held back by uncertainty over the future of Virgin Radio.

There were rumours last week that BSkyB was circling the radio business and may be prepared to pay £75m for it, though this was before the recent slump in the shares. If it were to swoop on the station which SMG had hoped to float at about this time, it could prompt another spat with Virgin brand owner Sir Richard Branson who is also believed to be eyeing the business. UTV is also among those interested in acquiring Virgin Radio.

SMG declined to comment, except to say that it was continuing to progress along the lines outlined in its strategy.

Related topic

* Scottish Media Group


This article:

Last updated: 21-Oct-07 01:03 BST

[pjetr] 25/10/2007 10:29

ards you say 1 mn profit a year, but I think we all agree that the potential profit is 10-15 mn a year in some years(if turnaround works).
I believe that debt can be reduced to 30 million with the sale of the 2 remaining non-core divisions.
I'd say at this price the share is good value, with or without takeover speculation.
what do you think?

[ards] 24/10/2007 13:27

after. look at last results. looking tempting though as UTV probably eyeing up bid.

[acornoptical] 22/10/2007 20:06

is that 120m debt after the sale of primesight or is it reduced by 60m following the sale?

[pjetr] 22/10/2007 18:17

it's clear that free broadcasters will have lots of competition from digital tv etc etc
but Hanover surely knew all that when they bought and they paid around 70p per share --- so, SMG hugely undervalued right now?

[ards] 22/10/2007 12:55

recent analyst note saying free broadcasters sector will be underperformers.

[jdung] 22/10/2007 11:11

why big drop at today ? any news?

[acornoptical] 03/10/2007 08:14

what if branson(virgin media) buy itv who already own 17% of smg it is not beyond the relms of possibility that they would then buy smg and bolt it on
this would then allow branson to sell virgin radio probaly with out all the restrictions ie getting a better price and haveing more interseted parties.
food for thought

[mkwng] 01/10/2007 10:29

no1 31.5 P. buy or sell.. ?

[acornoptical] 01/10/2007 10:17

the update was welcomed by investors ..... NOT !!!

[acornoptical] 22/9/2007 11:00

were we not supposed to have some sort of an update?

[geeff] 18/9/2007 14:58

surely utv must try a bid soon----they are(imo)the last chance for a good
independent tv co.for scotland and possibly now there might be a chance of
bringing in the scottish part of the border area as it looks like border is
going to be elbowed out by itv and they wont be interested in giving southern
scotland much coverage for sure.

[acornoptical] 17/9/2007 20:24

not going to sell off virgin radio according to the sunday papers how does this affect hanovers plans i wonder

[ards] 07/9/2007 16:53

fid ups holding. very good sign.

[gerry321] 06/9/2007 21:57

Well thats 56.6m changed hands in 3 days......18% of SMG......
Of which
49m were in 3 deals
in chronological order
6.5m at 40.5p
32.5m worked principal transaction at 38p
10m at 40.5p
mmmm......its unlikely that a Broker would take on a 32m committment at 38p if he didnt think he could shift it at at least a modest profit
so its possible that the 10m at 40.5p came from the 32m and hence the total deal may have been only 39.2m
So the fund may not be Granada but could be Fidelity with 41m or even Hanover at 39.7m getting out altogether at a massive loss having bought at 70p

RNS due tomorrow latest

[acornoptical] 06/9/2007 18:23

thank you gerry most helpfull.

[chopshs] 06/9/2007 17:46

Some bigger trades gone through late this pm at about 40.5, including one for 10m. I guess these are all buys. RNS tomorrow?

[gerry321] 06/9/2007 13:57

A further thought....
If indeed a Broker has acquired 32m shares at 38p this suggests that....
1 There is a fairly firm floor now at 38p
2 The share price is unlikely to rise much above 38p for the immediate future as the broker will want to clear his stock
3 There doesnt seem to be any immediate prospect of a bid for SMG otherwise the surplus stock would have been snapped up