What to do with TEN

CCZ Statton Equities

Stockbroker

What to do with TEN? Last week's downgrade and the revival of corporate interest reminds us of when Kerry Stokes first acquired 20% of SEVEN in 1996. SEVEN was struggling after making a disastrous upfront inventory pricing mistake, and the power factor (TV revenues/TV Ratings) fell to 88%. Stokes capitalised on the SEVEN price drop. Whilst acknowledging that the FTA TV advertising model has been fractured somewhat in the last 10 years, the third ranked commercial licence has a value well in excess of the current operational performance. The operator of the licence is vital and while Kerry Stokes turned over 7 CEO's before he finally declared success, with the right single minded ownership, TEN is only one CEO between a full recovery and the current earnings malaise. TEN's commercial ratings share is not terminal. Without discounting of adverts, TEN's power factor can hit 100% and profits return in 2015.


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CCZ Statton Equities
CCZ Statton Equities
Stockbroker
Stockbroker

CCZ offers a comprehensive range of services covering: Equity research; Institutional research sales; Institutional sales and trading; Private client advice and trading; Corporate finance advice. The group specialises in numerous ASX stock sectors...

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