Full disclosure: I own SPH stock.

Disclaimer: The report is meant to present a factual representation of the company’s business and is not a projection of how the stock will do. It is not meant to be an inducement to buy or sell the stock. As far as possible, I have tried to ensure that there are no errors. Any errors are my own. Please seek advice from an investment professional should you choose to use this information as part of your decision-making process on whether to invest in the stock or not.

 

So, I came across a report on SPH* that did a horrible valuation analysis on SPH. The main problem with the report is that they valued SPH on the basis that it was not a going concern, calculating it’s NAV and then taking a discount from there.

The report (more like blog post actually) also made simple factual errors like including Seletar Mall in SPH REIT…

So, I did my own analysis of SPH. You can download it for FREE. Leave me your comments and let me know how I can do better. (SPH (T39) report 10 Oct 17)

For those that don’t want to read through the entire thing, I’m listing some of the main points below.

Negatives:

  • The traditional media business is declining fast.
  • SPH is taking on more debt in order to fund other lines of business.
  • Other lines of business¬†are not a sure bet.
  • New CEO not from industry nor has a good track record.

Positives:

  • Market’s current pricing of SPH seems to expect the worst.
  • Media arm’s decline seems to be bottoming.
  • Debt levels are still sustainable.

Neutral:

  • Management is trying its best to diversify away from the media business

 

*I’m not even going to link to it because it’s so bad and they are obviously trying to get you to buy something from them

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