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And a great finish to boot ! Some after hour trades may be interesting and could there be something in the weekend business news I wonder ??
Brain hat on this weekend to get to grips with that ITV bond redemption statement and to 'read between the lines' !
Good weekend team.
Up first thing, then down, then down further by lunchtime, then a rally, then down after the bond news. And loads more volume after lunchtime than the morning session !
Not sure what to make of the bond news but lots of investigative work to be done, can't imagine Carolyn rallying all the troops in her boardroom and saying priority number one Britbox, priority number two commence a bond re-purchasing programme !
More interesting developments to come I imagine , to me this is more bizarre than Apples bond issue the other day !
Starts at 6.00pm, perfect just before the football from 7.00pm tonight.
Here's the youtube video link just in case anyone wants to tune in, could be quite interesting :-
After the announcement of Apples $7 billion bond issue yesterday, I went to bed scratching my head as to why a company with over $50billion in cash sitting on its balance sheet together with tens of billions of securities also held is issuing a 30 year bond which is tiny in comparison to the market value of the company of $1000bn !
The company states that the issue was to finance 'share repurchases, dividend payments, capital expenditures, acquisitions and repayment of debt'. So the company is telling us that as there's 'only' $50bn in the bank and 'just' tens of billions in other securites, it needs to raise funds via a bond issue ?
This morning no news, nothing,no-one has blinked an eyelid which I thought was rather odd and not to mention yesterdays gains in ITV on just slightly above average volume.
And this morning very steady again as the price has been all week.
Now back to the bond issue (and I think you will all like this bit).
What if Apple approached Liberty to find out what the company's intentions were with regards to its interest in ITV, the whole world and his wife knows that content is king and media companies are ready to splash the cash ?
What if Liberty's intentions now no longer involve ITV and is looking to exit (as BskyB did previously, selling its ITV stake to Liberty) ?
We all know these US Banks are colluding amongst themselves, so what if over a few beers and burgers at one of the finest Platinum Lace outlets, Liberty have said that they have taken around 50p in total dividends over the last four years or so with their stake in ITV and now want $2.50 per share in ITV for a complete exit.
Sounds ridiculous doesn't it, but then in the same breath what if Liberty have said they don't want dollars for their stake but they want a medium to long bond arrangement in Apple as exchange, we all know the dollar is in for a very rough ride from hereon in !
Now as some of you may know that through Goldman Sachs, a near 30% interest in ITV has been recorded, no-one knows the exact nature of the holding apart from the 9.9% Liberty have disclosed to the SE. We all know Goldman are up to every trick in the book, so it wouldn't surpise anyone if they had more than a 30% interest in ITV on their books somewhere.
Now back to the Apple Bond, I mentioned that the figure of $7bn was tiny in comparison to the value of the company but what I also found rather strange was the figure of $7bn, not $5bn or $10bn, as in most issues, a nice round figure.
My final what if, what if the actual issue was $10bn worth of bonds, and $3bn was given to Liberty in exchange for their 30% interest in ITV, leaving the headline $7bn ?
And guess what , $10bn for itv would equate to $2.50 a share give or take.
(I'll get my coat !)
I was wondering why the stock was so strong all day , with volumes nothing to write home about.
Maybe just maybe there could be loose talk with regards to the following, it does make me wonder :-
All the nonsense about Brexit and its subsequent effect on ITV and its advertising revenues, we now have this.
You couldn't make it up:-
Yes, its true and it was well documented during the results last month, but rather than read the whole article (its probably another version of the one which you read) here is the last and most interesting paragraph of the statement:-
"All that adds up to an increased focus on international content, even for US users. That’s why subscribers in America are starting to see shows from Denmark or Spain promoted on their front page. People will start to see more Japanese anime and Indian originals, too. The investment Netflix puts into each country will be more difficult to assuage as everything gets looped together. But Netflix is reportedly spending more than $15 billion this year on content alone. The company wants to fight to keep your attention; it’s just clear from their earnings that fight is getting tougher than ever ".
I'll take that for ITV, thank you and goodnight !
The ETO bid has certainly livened up the sector. I posted a £/$ chart on there a few days back and suggested that the dollar may have peaked at $1.20 and here we are at approx. $1.22 and this may just be the catalyst.
If Trump wants to continue this trade war with the Chinese, then watch the dollar plummet as the Chinese will start to dump US treasuries (they've are the biggest buyers in the world) and then see what will happen as many UK companies will soon be bid for as US Blue chip companies will also want to start to get rid of their bucks as well.
Interesting times ahead that's for sure.
...news articles you'll find over the weekend. Nothing new here to be honest but at least now ITV has come off the 'cold' list of stocks and is now on the 'ones to watch' list !!
...from last weeks lows and as I mentioned a few weeks back, the stock is trading within this tolerance band courtesy of ballsachs !
Now the question is, does it trade down another 10% from here again or are we going to see a new trading range ?