doodlebug4
- 12 Oct 2014 15:41
- 341 of 1268
Jim Slater in the Telegraph on Saturday;
My current favourite is ITV, which is valued at about £8bn at a share price this week of about 203p. It is always easy to deal in the shares, even if you are buying a large amount, and the “spread” – the difference between the buying and selling prices of a share, effectively another cost – is very low at only 0.2p.
In my view ITV has several extra advantages, which distinguish it from the other elephants in the herd.
• Following Liberty Global’s recent purchase of 6.4pc of ITV from Sky, there is a very good chance of a bid for the company during the next two to three years.
• Based on a new report from Nera Economic Consulting, there are growing hopes of establishing substantial extra revenue from retransmission charges by 2017/8.
• ITV programmes developed in recent years have been excellent and wide-ranging, including Downton Abbey, Mr Selfridge, and The X Factor. With media companies, increasing quality content is now the name of the game and ITV has been upgrading its own significantly.
• You can never be really sure but on the face of it, and based on performance to date, the company appears to be pointing its efforts in absolutely the right direction and seems to be very well managed.
• Above all for me, the financial statistics tick all of my boxes. The p/e ratio is less than 15, the growth rate in earnings per share over the next year is more than 17pc, giving a p/e to growth or “Peg” ratio of 0.9, the earnings per share growth record is excellent, cash flow is in excess of earnings and the company has a strong net cash position. Also, the current dividend yield is a reasonably satisfactory 2.4pc and is rising fast.