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Closed up 2p on the week, first up week in 5. Let's see what next week brings.

Threadneedle’s Kinder optimistic on BT

Chris Kinder, manager of the Threadneedle UK Equities fund, is optimistic about the prospects for BT (BT) thanks to a favourable regulatory environment.

The manager of the £3.7bn fund said in his latest monthly factsheet that the telecommunications giant had been a ‘beneficial holding’ after French telecoms company Altice paid £2.2bn to become BT’s biggest shareholder, with a 12.1% stake.

‘BT’s profits are expected to improve in the current fiscal year. Meanwhile, the regulatory environment is now more favourable, which should help the firm earn a reasonable return on its fibre investment,’ said Kinder.

‘We are also encouraged by management’s plans to divest the cash-consumptive BT Sport television business.’

Shares in BT closed up 0.2% at 175p on Thursday. The shares have rallied strongly this year and are up more than 30% year to date.

"it must be prime for a takeover right now I would think!"

I agree Monty, but I've been thinking this for the past 4 years.

Over the weekend I watched the results Q&A, I've got to say our CEO Carolyn McCall and her sidekick CFO Chris Kennedy don't give confidence to shareholders or potential new shareholders watching. Is there any wonder the share price is struggling? I thought that McCall was the right person for the job. Now I'm losing confidence in her. Kennedy always put a negative on everything too. When you watch CNBC, CEO's of USA companies they are always upbeat, like their jobs depend on it. Sadly not our shower.

Diesel car will lose you money, ITV will probably lose you money to start with, but longer term a better option than buying a car. Lol

Guys I can think of no other reason than the ITV BOD intentions are to make ITV look more attractive to a predator by saving cash.

As of 30th June 2021 ITV Net Debt was £467m (2020 £783m) a reduction of £316m.
Cash in the bank £704m minus tarp payment this month £256m = £448m in the bank.

To not pay a dividend in H1 2021 is plainly obvious to me that either the BOD have plans for the saved cash, ie Channel4 or they're saving cash for a takeover. Asset strippers love companies with little debt and cash in the bank. If ITV were a USA company the share price would reflect the true valuation that most of us can see. IMHO.

You beat me too it Fleccy. Lol

Fleccy.... "Openreach could be the focus, not a takeover"

I think that you're more than likely right Fleccy. You will recall months before Drahi announced his BT shareholding, media were reporting that he was interested in acquiring Openreach for £20B. The BOD probably turned down his interest, so the next best thing is build a sizable stake so that he has a seat at the table to change minds. Drahi is a winner, he's used to getting what he wants, he's not a billionaire for nothing.

"how would we know whether, or not, other parties are accumulating shares on his behalf?"

yes my thought exactly. This is the reason that I wondered if he was also exempt from adding to his stake. The press claimed at the time of the announcement that Drahi had acquire his BT holing within 2 days, I think that we would all would agree agree that this stake building too a lot longer than 2 days, most probably months, yet he managed to do this without disclosing? So maybe there are ways around Drahi adding without disclosing? This way he keeps a lower BT share price that's in his best interest if he does intend bidding for BT. Just speculating of cause.

Fleccy, you may know the answer to this question. Under the 6 month agreement that Drahi currently has regarding not being allowed to bid for BT until December at the earliest. Is Drahi still allowed to add to his 12.1% of BT shareholding, or would he have to wait to disclose any additional BT shares?

Let's hope this latest article helps the share price this week.

‘Together has no limits” is an offence to the English language, but Patrick Drahi’s corporate slogan might be pertinent when it comes to BT. The French-Israeli tycoon popped up on its share register in June with a 12.1 per cent stake. At the time, Drahi said he did not intend to make a takeover offer — a promise that bound his hands for six months.

Yet few expect the stakebuilding to be the limit of his ambitions; Drahi is likely to come back for more after his bid moratorium expires in December. In the meantime, his presence has stirred up private equity interest in BT and its Openreach broadband subsidiary. One of the most important infrastructure assets in Britain is very nearly in play —

https://www.thetimes.co.uk/article/a-takeover-bid-for-battered-bt-is-only-a-matter-of-time-3bzlt8d92

HOLD: ITV (ITV)
The broadcaster turned in creditable figures for the half, though full-year comparators will be tougher through the second half, writes Mark Robinson.

ITV chief executive Carolyn McCall brought an end to speculation that the broadcaster was looking to capture a stake in BT Sport, but declined to comment on whether it would put in a bid for Channel 4, also the subject of media speculation.

The update came as the group revealed that half-year profitability was boosted by strengthening advertising volumes, the resumption of productions, and helped by a tightening rein on working capital, leading to £21m of savings.

The group registered its biggest ever month for advertising revenue in June, due to the delayed Euro 2020 tournament and the return of the hugely popular Love Island series. Covid-19 locked in audiences through 2020, so total viewing fell 6 per cent over the period, yet registered users on ITV Hub were up 7 per cent to 34.6m.

Indeed, the first half saw the highest ever number of streams for drama viewing on the ITV Hub. The group also revealed that subscriptions for BritBox UK continued to ratchet up, increasing by over 10 per cent to around 555,000 at June 30 2021 from 500,000 in January despite the loosening of lockdown restrictions in the second quarter.

However, management tried to play down relative expectations for the remainder of the year, due to tougher comparators through the second half of the year, though it forecast advertising revenue would be 68 per cent higher in July and up as much as 20 per cent in August. So although half-year figures provide encouragement for shareholders, and the shares are priced at a lowly 10 times consensus earnings, the trading backdrop remains uncertain as advertising regulations continue to tighten and competition intensifies.

https://www.ft.com/content/e55b4716-9587-429e-b518-685fe659fa83

Yes the ITV share price rose on results to start with for 30 mins then fell like a stone. It makes you wonder had ITV announced a 1p dividend for H1 if the share price would have ended the week in the high 120's.

PE vs Industry: ITV is good value based on its PE Ratio (12.6x) compared to the UK Media industry average (34.4x).

PE vs Market: ITV is good value based on its PE Ratio (12.6x) compared to the UK market (23.9x).

Fair Value 175p

https://simplywall.st/stocks/gb/media/lse-itv/itv-shares

"I held IAG but sold it today as they are reporting tomorrow.
Didn’t wont a third hit!
It will probably rise tomorrow?"

Good move Rock, IAG dropping.

This may be of interest to you Rock regarding BT. Yesterday after hours trade there was a 10.5 million trade, same again today for almost 13 million trade. This makes me think games are also being played out to obtain the cheap shares for someone? That someone could be Drahi who recently purchased 12.1% of BT.

So there was an after hours trade yesterday for 10 million shares, and one today for almost 13 million shares. I hope it's Drahi, this would put a rocket up the share price. 200p plus.

That's sod's law Rock.

I'm convinced that someone is shorting ITV, are you coming around to my way of thinking yet? Lol

ITV will probably start off tomorrow up 2p, like the previous 2 days, then down they go. At some point it will stop, then the share price will start to recover. JMO.

I agree with you expat, I also believe that ITV will be taken over for it's content. This keeps me hanging in there. I know that if I was to sell my ITV holding a bid would follow. I would kick myself if I was to sell, than hold for another 4 years if that's what it takes.

I also hold BT Rock, so I've been beaten up today too.