RE: Stagnant Share Price18 Apr 2024 14:30
I assume that 5 to 10% of the funds from the dividend will come back as reinvestment. We are talking about another 10-15 million shares that will be accumulated in investors' long-term accounts. Let's count 250 to 340 million shares that will disappear from trading as a result of the buyback. In addition, shares blocked by the largest investors and at least 5-15% of the entire issue which are held by small investors (most of them were bought with purchase share price range well above £1). And now I propose to everyone with any mathematical skills to determine the real free float only halfway through the realized buyback. To the price forecasts, taking into account the above liquidity on the stock market, ITV proposes to add the upcoming interest rate cut, growing demand for ITV services from platforms such as Netflix, growth of the advertising market in the UK, upcoming sporting events supported by ITV and many others. You really have to be either stupid, blind or a to be a troll, if you not to notice the specific consequences for the valuation of ITV shares. Moreover, it is worth remembering that in reality the company has already incurred the largest transformation expenses and the results presented in the last quarters should not be at least worse, but definitely better. Just like the next forecasts presented by the Management Board and CEO. And I think this is what all the large long-term players, some of whom have forgotten about so quickly, are counting on. And their horizon of planned profits is probably not limited to a few percent. When purchasing 1% of a company's shares, a profitable investment requires a very large price increase to be able to exit it completely and smoothly. And I also see this in the example of my modest 290k shares, where a sell order at this level is often over 10% of the entire turnover. Let me remind you that we are talking about over 200 million shares and only in the possession of one investor.
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