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Future were on the look out at their last set of accounts for a newspaper, what better than reach plc all dressed ?? up and nowhere to go, they can raise the finances as they are generating strong cash flows, and know how to run a subscription based business. £5.60 will do it.
https://www.inpublishing.co.uk/articles/uk-ad-spend-forecast-to-rise-to-35bn-this-year-21324
Interesting
I cannot see how this can be done with NWOR shares. So ii's will wait to see the colour of Montgomery's money. If he can raise the £500m+ needed it will surely be from either private equity or a sovereign/semi sovereign wealth fund. Which will raise questions about foreign ownership of a huge section of the British press...
For pi's the "good" news is that volumes are well up and so is the sp - I bought more in the 60's only a couple of weeks ago - so there is stake building going on. That should be good for the sp irrespective of what happens with NWOR. All imho of course.
GLA
GS
A couple of buys @ 109p but the herd are noticeable by their absence! As for the "digital ad downturn", I foolishly imagined that RCH offering a digital subscription would cover its costs! Obviously, if the subscription is high enough it would but what amount would that need to be? How important are digital ads? Would subscribers pay to not watch them? For me, adverts on catch-up TV are extremely annoying - less so on terrestrial as I can check out what's happening on other channels.
So far there's barely any excitement at all!
Great speculation on the buyer interest to stimulate SP and put RCH back in the lime light.
But PRESS GAZETTE has nothing on the story. But the story is ad revenues down across the board.
The Independent proposing to reduce staff by 20% amid digital ad downturn
Gannett suffers fourth straight loss-making quarter but hits 2m digital subs
Reach is cheap to buy but don't bet your house on David Monty(Python) gomery pulling it off and if he does the SP will plummet or he'll sell at earliest opportunity
12 million subscribers
Pension deficit probably in a substantial surplus
More cash in the bank than Nwor worth
Growing dividend
3 million subscribers £180 million a year extra profit. @£5PM
This Company will be stolen at less than £6.50or £7.50 a share
The board better play hardball and get the maximum Value for us even if its a buyout.
@Checkin - agreed, but hard to see NWOR pulling this off. Their market cap (£54.5m) is a less than 20% of RCH (£327m). They have a 74 year old executive chairman and an acting finance director appointed 7 weeks ago. Cash at even £1.80 a share is over £500m (I would be thrilled BTW as that is way above my average, although I think RCH is worth more).
But I can't see NWOR raising that on the debt markets, especially in the present interest rate environment. And if it is shares, then why would a shareholder accept?
GLA
GS
Nope but I did buy at 69p… so happy with a quid plus….B
Well that'll do it... bets on takeover premium/ price anyone?
Come on, get back above a quid you peddler of fascinating high brow news...
https://www.dailystar.co.uk/health/herb-extracts-can-help-increase-28379370
Friday Beer token sell off today. but not to shabby holding over 80p for a week now. But advertising looks to be down across the board Meta suffering big time .
That's OK it's your money, but a lot of people will cough up for the prize potential of the monthly draws. No rational person would go into a betting shop a Lose 2 k on a electronic roulette machine yet they do.
I certainly wouldn't want to pay for it in its current format.
I regularly read publications from various news outlets that use reach but really find it frustrating to click on an article to read to only have to click on a button to continue reading and then have the entire user experience decimated by poorly loaded adverts and scrolling. No amount of promise to remove said experience would convince me to cough up.
I often close the thing in annoyance. If I was an advertiser paying for this, I'd be asking are users seeing the ads from traffic or acting like I do and closing their browsers?
Disclosure: I currently don't hold a position. It is on my watch list though to look for improvements that could see growth.
Understood - I didn't appreciate the advert free piece, however I feel there is a difference between what content people are prepared to pay for and just general newsflow/ arguably some clickbait. And I think Reach are firmly in the less premium latter camp... That said - this is (like a few shares) very undervalued and if data is where its at then sooner or later the market will rerate accordingly
Never said a paywall as its not a smart move but ad free and monthly cash prizes is . And I'll bet 3 million would sign up. Because the UK folk love a flutter
Trouble is I don't think 3m of the 12m subscribe, they have probably done the math and the fact is the loss in revenue by hiding behind a paywall probably isn't compensated by the subscription.
Years ago Dixons were registering customers like Reach are and suddenly the market woke up to the fact, and it's shares soared. Once people recognise with a reasonable offering to the subscribers fo a £5 or £6 a month then even if 3 million out of 12 million registered people took it out, the money is straight to the bottom line, bar the weekly and monthly cash prizes. If its not a 10 bagger from here I'd be surprised. Just imagine the dividend especially if the pension deficit has turned into a surplus. HOPEFULLY this management team have got the street wise ability to see a fantastic opportunity. And start to monopolise it.
Target Been down graded again .Its life Jim but not as we know it. Get subs going.
Gardening leave tin tack?
Jim get with the plan mate
https://www.inpublishing.co.uk/articles/dc-thomson-daily-news-brands-hit-digital-subscriptions-milestone-21237
I expect my 5 million payment in reach shares...its really not hard to see the potential.
Totally agree: should smash £8! Old management vs. new technology - something has to give!
BT pension reported £11bn drop in value of assets (out of £57bn) . Same here . Dec21 pension assets were £ 2.6 bn& LDI was £0.9 by. In June 22 pension assets dropped to £ 2.0bn and LDI was £0.56 by, also a drop of 20% on total assets & reduction in LDI. Don’t know how the interest rate spike in sept/ oct impacted.No RNS.
Sounds like the government have finally realised that those they owe money too are now calling the shots.
ie 'You have far too much debt, we won't lend at cheap rates anymore, and if you don't start paying back your debts, the cost will rise (higher rates) and we might even stop lending to you'
The other potential incompetence is The BofE, they too may have to be brought into line and encouraged to unplug the printing machine they nicknamed QE.
Break out