SPH   

SPH

I would like to share my experience on this counter. Some years back I bought 10 lots of SPH  and held it for about two years. The share price never moved. I sold them at about cost finally. The share price went up 100% about one and half year later and since then,  those who held on to the shares, not only they were rewarded with capittal gain, they were also rewarded with special dividens due to capital restructuring and stock splits. This time, I told myself, I must not make the same mistake. Somehow, I have the feeling that the share price of this company will move north due to good dividens and special payouts. I may be wrong, but I feel I could take the risk as the risk is very low.

 

SPH: Robust Jan AdEx Growth
BUY S$4.62 SPH SP Price Target : 12-month S$ 5.20
Story: AC Nielsen?s latest AdEx figures show that SPH?s newspaper display
ad revenues for January 2007 grew by 14.7% yoy. For the first five months
of SPH?s FY (Aug-Jan), display ad volumes were up by 7.8% yoy.

Point: This latest set of encouraging figures reinforces our belief that
SPH?s AdEx revenues in 2007 should be better than recent years?. With the
Singapore economy remaining firm and consumer sentiment still buoyant, we
should see spending on advertising continuing to rise, with SPH being a
prime beneficiary of this trend.

Relevance: Maintain BUY, and our 12-month target price of S$5.20, which is
based on sum-of-the-parts valuation. Our target price implies upside of 13%
and a net yield of over 6%.


Source - DBS Vickers

Date: 23/2/2007

 

SJ is the forum where we can share knowledge and learn from one another. Keep it up.

 

Just a clarification........my earlier post is directed at analysts in general and the firms they represent. It has no bearing whatsoever on the quality of SPH. 

 

Dear Readers,



Let it be........ After all, I consider SPH is one of the stock that can be left running on... multi decades, even century!!!

 

Agree with shplayer, these analysts usually make a buy call when they are fully loaded up and on their way to unload them. The most famous analyst who are good in making such buy call is ML. So when they call for buy, we MUST SELL!



Today this elephant is not moving its butt.

 

shplayer and other invested. For your info ONLY. Caveat Emptor  apply.

Just read this report :Analysts Update SPH : Buy S$4.62 Price Target:  12-mth S$5.20.

AC Nielsen's latest AdEx figure show that SPH's newspaper display ad revenues for Jan 2007 grew by 14.7%yoy for the first 5 mths of SPH's FY (Aug-Jan) display ad volumes were up by 7.8% yoy.This latest set of encouraging figure reinforces their belief that SPH's AdEx revenues in 2007 should be better than recent years'. With the Singapore economy remaining firm and consumer sentiment still buoyant, we should see spending on advertising continuing to rise, with SPH being a prime beneficiary of this trend. Maintain BUY and our 12-mth target price of S$5.20 which is based on sum-of-the-parts valuation. Our target Price implies upside of 13% and a net yield of over 6%.

                                                  

                                                

 

AnthonyTan,

When analysts make a 'Buy' call, they have already bought....and may even be selling.......

 

Most analyst in town make a buy call. What happen to those analyst. I would appreciate to hear from them.It been a long long time since they recommend a buy call. What happen????????????????

 

Beidou, you are right. If the present CEO cannot come up with profitable ideas to reward its shareholders like us, he should step aside and let other bright sparks to take over.

This is for Zujzuj

Try take away M1, Starhub and Sky 11. The SPH balance sheet will show a pack of bones.

Branching out into electronic media is the right strategy, but why only now? What is the CEO been doing the past few years?

High time for him to go so that a New Bloom will sweep away all those unproductive "SENIOR STAFF"

AFTER CLEANING HOUSE, SPH WILL THEN BE REJUVENATED OR SAVED

 

it has also setup an online classified website ST701 & mediabox office that deals with those large lcd display that we get to see in orchard road ... so the company is trying hard to divert from its core printing media.

 

On deciding to invest in sky@eleven yes SPH made the right decision, but not its original Time House site where it sold off the land to AG (I think)

 

So hopefully SPH will storm back ferociously instead of continuing to be a blue chip laggard.

 

SPH went v aggressively in STOMP....and it has asiaone.com

So, pls don't say that the management is not moving into the internet and getting comfortable with its monopoly. Besides, SPH had bought a outdoor advertising company and hardware zone recently (another internet site) to try n boost its core biz.

I believe that SPH is not merely a company that concentrate solely on print (cos if it is ..i would ve dump it yrs ago) nor is it a company that only gets it profits from its investments in M1, starhub etc....

The fact that SPH decided to build sky@eleven instead of selling off the site for a one time gain shows the foresight of the management.

Pls feel free to counter my points and discuss more

 

What Incirent said is quite true. The question is how? what to switch to from print media? I believe SPH's mgt is no dumb, they must have cracked their head on this already. Everyone in the media business know the potential  (and challenge) of the Internet but do not know how to capitalise on it. You need a break through idea. If you are able to bring out another You Tube kind of business idea, you are instant rich by 1.3 b (price paid by Google when it bought over You Tube). May be we should all think of some ideas to help move the share  price ?

 

With the appearance of the internet, print media is dead. Look at all the major newspapers like Usatoday, Washington Post and also, The New York Times. Their newspaper sales are pointing south.

Without investments like Sky 11, M1, Starhub, the SPH balance sheet will not be of any interest to anyone.

It might be time for the SPH Management to consider changing its core business to something rewarding in the long term rather than sticking to the dead elephant, the print media.

 

Hi Thks to all who have responded. I held this counter for many year because I view the monopoly as its strength besides its decent dividen payouts. Warrent Buffet likes this kind of companies too. I believe the shareholders will be rewarded handsomely one day.

 

incirent,

your comments on govt intervention.....



on the contrary,

it is exactly because of govt interventtion (control of media) that SPH has monopoly.

 

Dear Beidou,



Be innovative, competitive regionalized or even globalized speedy expansion!!! I shall watch, and wonder, if SPH from time to time is toward that direction?

 

By nature, humans are very reluctant to change unless the situation requires it to do so.

If the Singapore Government expresses the desire to have a second News Media in Singapore, oh boy, you will see Allan Chan running all around for positive ideas to effect changes within SPH. However, this will never happen because that will mean Government intervention which is detrimental to the business environment.

So, there will not be any changes at all in the future.