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Who Will Collapse First Building Companies Or The Media

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I have been watching the share prices of the building companies and Media companies and have been wondering which ones will leave shareholders with no value, and sack large numbers of staff.

Barrats

persimmon

Wimpy

OR

ITV

Trinity Mirror

Johnson Press

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I think your missing Virgin Media from that list.

I also have a feeling Sky is going to end up in big trouble. If will be interesting to see what happens to the Prem league sides if Sky says we can't pay you the billions we agreed to. It might also impact on the big movie studios as well.

There's also Setanta, big debts and also took on the Premiership cash cow.

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if we don’t hyperinflate, anyone who has a lot of debt will die just because when they "re-mortgage" they will be paying 2-3x more for that debt IF they can get a "re-mortgage" at all.

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Virgin may be doing well but they have a huge debt.

http://www.theregister.co.uk/2007/05/14/vi...media_analysis/

Crippling debt

The cable industry loves leverage: this has been the case since the early days of US cable, and the model was perfected by John Malone at TCI over many decades. The theory goes that the interest payments eat all the profits, and therefore no tax needs to be paid over to the government. The cash flows guarantee the debt, and the cash flows steadily rise over time given that monopoly rents can eventually be extracted. The leverage leads to greater shareholder returns on a percentage basis than a non-leveraged business model, especially as the business is valued on multiples of cash flow.

The corollary of this is that in times of falling cash flows or rising interest rates the equity can easily and quickly be wiped out and the debt holders take over. This is what effectively happened in the UK cable industry a few years ago: ntl ran around buying as many cable systems as possible using bondholders' money and then didn't generate enough cash flow to keep the bondholders happy. The bondholders effectively took over the company, installed new management, bought the only other UK cable system of any serious size, bought a MVNO to give it an ultra-fashionable quad play, and more importantly a fresh brand.

So at the end of Q1, Virgin Media had net debt of £5.7bn, with a weighted average cost of debt of 7.9 per cent. This equates to around £454m of annual interest charges. Most of the debt is in US Dollars and floating rate, which probably means the skills of the Virgin Media Treasury department in predicting future interest and exchange rates are far more important than any contract negotiations with Sky.

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have to agree on sky,they overpaid for the football given they were the only bidder and when I look at what you get for £17 pm it's not that much better than freeview.

from what I hear,VM is doing quite nicely thank you very much.they are gaining a lot of customers at the mo.

From personal experience.... VM's TV is crap, compared to Sky, and their broadband has the same uptime as a lady of ill repute's undergarments!

D.

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I have been watching the share prices of the building companies and Media companies and have been wondering which ones will leave shareholders with no value, and sack large numbers of staff.

Barrats

persimmon

Wimpy

OR

ITV

Trinity Mirror

Johnson Press

BARRATTS.

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BARRATTS.

Ooh. I dunno.

The cable TV folks don't actually have that many assets and they are an easy choice to stop paying for those in financial difficulties. I also can't see virgin et al getting any sort of taxpayer backhander in the way that the housebuilders might.

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Ooh. I dunno.

The cable TV folks don't actually have that many assets and they are an easy choice to stop paying for those in financial difficulties. I also can't see virgin et al getting any sort of taxpayer backhander in the way that the housebuilders might.

People like their "treats" though, and noe they have stopped going to the pub and restaurant there's not much left. Eventually, I agree, then cable TV will suffer, but if it's a question of who goes down first, then I#m gonna stick with the builders. They've already tun out of time.

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People like their "treats" though, and noe they have stopped going to the pub and restaurant there's not much left. Eventually, I agree, then cable TV will suffer, but if it's a question of who goes down first, then I#m gonna stick with the builders. They've already tun out of time.

Cable and sky is pretty rubbish really, Freeview provides sufficient extra choice and the internet provides endless free entertainment. I think ITV is suffering right now because it had so many bloody debt consolidation adverts all the time, but now (when people might actually benefit from debt consolidation) there's no money to lend. :lol::lol:

I was a bit surprised that GAME group did quite badly last week since computer game sales have been rocketing recently. Possibly because GAME is both overpriced and has rude, know-it-all staff who scoff at your game choices.

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Let's hope Barratt's don't decide to move into tellie - all their programmes would feature helicopters landing on the lawns of tacky houses.... :lol:

BTW I had to laugh at a recent advert from Everest Double Glazing, about how they were putting new windows in a pub that they'd replaced 20 years earlier. They conveniently forgot to mention that at the time, their slogan was 'you only fit double glazing once' :lol:

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Let's hope Barratt's don't decide to move into tellie - all their programmes would feature helicopters landing on the lawns of tacky houses.... :lol:

BTW I had to laugh at a recent advert from Everest Double Glazing, about how they were putting new windows in a pub that they'd replaced 20 years earlier. They conveniently forgot to mention that at the time, their slogan was 'you only fit double glazing once' :lol:

You are confusing Barratts with Channel 4 and BBC 1 (OK, they don't do helicopters on C4 and Beeb 1, but they do the tacky properties, and even more tacky presenters). :blink:

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Between Trinity Mirror and Johnson Press they own a huge % of local newspapers. I used to work for an independant newspaper group and they were the big boys but with a lot of newspapers the cover price does not cover the cost of the paper the thing which keeps them going is PROPERTY Motors and jobs advertising and soon people wanting advertising for this will be in sort supply!!

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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