(MEC) Mecom

Lets hope its not a fewww more years tired of waiting!

scarlet, I think its called a Strategic Review as announced on 24th Jan.

Gotta, I think we have all been saying for the last two years that the company should be valued at 3.50. The dilema for Tom T is working out what he needs to do to attract investment into the company to get us to that price? The fundamentals for 3.50 have been there for years.

Anyone got any ideas for him?

Herrin1 - I still hold a reasonable interest in MEC, 40k shares, in mine & the missus' ISAs.

Don't lose faith in MEC. Although my expectations have been tempered somewhat these days, imho MEC is still worth £3.50 - £4.50, especially if the Edda Media deal goes through.

GLA, Gotta

Just like they were in 2010 when they were fined €19 million. Same mistake twice would be stupid so yes probably very close to detail this time.

So lets hope Mec have learnt since their €19 million fine from The Dutch Competition Authority in 2010

http://www.sfnblog.com/ownership_and_regulations/2010/07/mecom_fined_over_dutch_newspapers_indepe.php

They thought they were right in this case and shouldn't have been fined.
I wouldn't really expect them to make the same mistake twice except this time it is A-pressen in the similar position as Mec were then.

Question is how much influence do Norwegian media Authority have over Norwegian Competition Authority ?

Clearly Mecom and A-pressen can see their way around the law and the Norwegian media Authority are not happy about it.

The FT article states " The media authority said it would make a final decision in June "
So what decision is this if they have none to make ?

I'd side with Tom as he'll be closer to the detail.

at the very leased. He responded well and relatively quickly to but down the rumours.

Who is correct Tom t or the FT?

Disposal of Edda Media - update
Date : 06/02/2012 @ 10:39
Source : UK Regulatory (RNS & others)
Stock : Mecom (MEC)
Quote : 193.75 -10.25 (-5.02%) @ 10:24
http://bit.ly/wudyih

Quite right, someone should be hung, drawn and quartered for this f*** u*.....!

Is this the reason for the 8% drop this morning. Ridiculous. I was concerned about this and posted a number of times on the subject. However, like most people I really couldn't believe that Mec or A-pressen would enter into deal that they knew could never go through. Waiting until June for decision now. In December tom toumazis was talking about big day for Mec selling business in Norway. I hope he was aware of the competition issues otherwise he might as well to go back watching ******* Arsenal and playing with his new dog. Oh he is in Denmark and Poland this week and looking forward to it. Doesn't sound like he is going to sack them then unless he enjoys sacking people. Wish I had followed gottalottie in buying gkp they are 8% up again today 328p

Financial Times, 5:59pm Friday February 3rd, 2012
Regulators probe sale of Mecom’s Norway business
Norwegian Media Authority says deal breaches antitrust laws because vendor would monopolise circulation in certain regions

http://www.ft.com/cms/s/0/629d7b8c-4e6c-11e1-8670-00144feabdc0.html

Will the market drop in the next 6 weeks? I am not sure, data coming out of China, US and northern EU are all a bit better than expected. I think that we may get a drop of 5% or so but i wouldnt expect much more unless we get disastrous news. I think 1260 -1280 on the S&P will be unlikely to be broken anytime soon. Remember we are tading at around 12.7 x P/E on the S&P. The historical average is 16 x P/E. If they manage to sort out Greece without any contagion to other countries i think we could see a 10% pop up in stocks.

Regards MEC and Aviva. I dont know what is causing MEC to fall at present, it could be AVIVA selling in which case i think they will have arranged a buyer at a certain price and they will sell down until the price is reached and large trades will occur. It could equally be that investors are getting nervous and selling. Either way i will buy more before March 4 if we get much lower than this because nothing has changed.

I do agree about A pressen, if that falls through there could be a large drop, if so i will be buying on the dip, they have another interested buyer waiting in the wings and doesnt change the fundamentals.

scarlet, I thought I was the negative one ! why do you think the markets will crash over the next 6 weeks ?

Looks like we are heading sub £2. I really dont know what to do with my holding... I think the markets are due to crash over the next 6 weeks but then I also believe that the A-Pressen sale will go through, the Danish function will be sold and we will publish a good set of results on March 13th.

I have no idea why Aviva have sold out so heavily. They got rid of DM and then sold more of their holdings...?

If the A-Pressen sale gets rejected by the authorities we are in big trouble.. Mecom has all of a sudden become quite a risky holding.

who know`s what they are up to ! I used to be convinced that once they had removed DM they would push to sell all the parts of the business, not sell down their holding.

10% Only about 8.5 million shares to go then.

disposed of a few more, In one sense I can understand it they were a bit to heavily in to Mecom but I doubt they are done yet, probably aiming for about 10% but heh what do I know.

Hi Hopple
Still here, also waiting for £3.00 but with a much smaller holding than the early days !
If Mecom can dispose of certain parts of the empire we will I am sure see the £3.00. If however due to recession or just less risk taking the sale(s) do not go through. I can see us falling back to under £2.00 in the not to distant future.
I don`t have much hope for Euro land and feel we have ten grey years ahead, hope I am wrong.

Hard to find further short-term catalysts -- Eurozone growth outlook doesn't help...

Still here waiting for £3.00 plus. At this rate it could be some time yet.

Or have you all sold out...? No wonder we are where we are today....

Maybe Mecom can sell these rags to the journalists. They are the only ones getting paid by this paper so it is only fair they assume the risk.

http://www.nordjyske.dk/artikel/10/5/2/4062280/2/berlingskes-journalister-arbejder-igen


EMPLOYEES at Berlingske, B.T. and Berlingske News Agency has resumed work after a day's strike.

Journalists at Berlingske, B.T. and Berlingske News Agency, BNB, have resumed work.

This was stated by Frederick M. Juul, union representative for BT and BMDs.

- Employees have chosen to return to work after a lengthy discussion, how many different proposals were turned. Now the nominees for directors with demands about how such negotiations should take place some forward-looking, says Frederick M. Juul politiken.dk.

Employees met Saturday at 10 in Berlingske in Copenhagen. After two hours of discussion they decided to resume work.

Employees have been dissatisfied with management in negotiations on a save round. Berlingske Media owner, Mecom, has announced that 87 employees will lose your job. Employees were dissatisfied with management is not so on a voluntary resignation and redeployment.

Friday justified the employees work stoppage in this opinion to the CEO Lisbeth Knudsen:

- We are deeply dissatisfied with the process around the current plans. There has been a real negotiating process. Management has, for example, put a job bank available and, unlike its promises not used it, writes the employees.

- We have employees who understand that when the accounting looks like they do, it must affect the number of posts. But cuts should not come at the brutal manner in which we are now experiencing, it said.

Lisbeth Knudsen complained employee reaction.

- It's hard to understand that a necessary nedbemanding of 3.5 percent in 2500 employees throughout the Berlingske Media and within all staff groups and departments can provide the response to BMDs and BT's editors, she says.

Lisbeth Knudsen did not recognize the employees' view of the lack of negotiations.

http://www.google.com/hostednews/afp/article/ALeqM5ib3LVzH40nCKcdt_F1XpJo1eaNOA?docId=CNG.01f524a9ca5f6a67cfc7eb46cbd8943e.a21


COPENHAGEN - The editors of the newspaper Berlingske tabloid BT and went on strike Friday to protest against job losses in the Berlingske Media group, we learn from corroborating sources.
In addition to these two newspapers, Berlingske Media belonging to the English group Mecom has 24syv including radio and news agency BNB and employs 2,500 people.
The approximately 310 strikers protesting against the removal of 87 jobs across the group and against the closure of free newspaper Urban following a savings plan announced in January by Berlingske Media.
In a letter to management strikers say they understand the cuts related to the poor economic situation of the group. But they accuse him "the brutal way" in which it conducts such downsizing "no real negotiation."
Despite the strike Berlingske and BT will come out on newsstands Saturday, according to management.
"The two papers are being produced by the directors and students in journalism and will appear tomorrow as planned," said the communications director of Berlingske, Gitte Bisse Bertelsen.
The Danish Union of Journalists called on the strikers to resume work. "This is a strike contrary to the conventions of work," said the vice-president of the union Lars Werge Journalisten.dk site.
Founded in 1749, Berlingske with a circulation of 100,000 copies is the oldest newspaper in Denmark. BT with a circulation of 130,000 copies is one of two major tabloids in Denmark

You are NOT alone...

TA OK but with my portfolio it could any number of others!!!!!

Check out the "other" dog....and I don't mean GMA ?

They only sold a few dropping them below the 3% though!!

cocked up again they sold not bought

Norges bank might have an idea of how edda media sale is going hence buying 3% of company.

It is i said the other day when you have continual exceptionals, it is no longer exceptional just a cost of doing business where you are constantly downsizing promising gravy tomorrow. Still having said that there is considerable upside potential with MEC

a future written in tablets
2012-01-26 07:52:15.524 GMT

Abstract:
Apps all round
This week the company launched its first full app, for Berlingske, the Danish
daily which is its leading individual title. Apps for nine other papers will
follow. Berlingske’s postal subscribers are being offered the app free
alongside their existing subscription. As a stand-alone it will cost €40 per
month or €400 per year. This is a third less than the print subscription, and
Mecom will lose a further 30% in commission to Apple. So the strategy is
clearly to gain new and younger subscribers rather than simply cannibalise the
1.2m who already receive a paper direct to their door.
Age profile plays well
The average age of Mecom’s subscribers is 56, though the readership is 51,
reflecting other family members who read the papers. The average online readers
is 42. It seems unlikely that many existing subscribers will abandon papers in
favour of apps. But the company cites research showing that 30 day free trials
on newspaper apps have an 84% rate of conversion to subscriptions. The tablet
format, in particular, offers a comparable or better experience than paper.
Cost grind continues
Meantime Mecom is faced with steadily falling newspaper advertising and static
subscriptions. It plans further outsourcing and may also shed lower margin free
sheets. The Polish operation, which contributed just €2m ebitda in 2011, is
judged sub-scale. The Netherlands is the heart of the business, contributing
82% of ebitda. Mecom hopes to cut €80m from overheads by 2014, but sees €45m of
this being swallowed by general cost inflation.
Valuation
In a brief reaction note there is not time to make a detailed case, although
the €190m proceeds from the Norwegian business, Edda Media, effectively remove
any lingering financial risk from the shares. The company is considering a
return of capital to shareholders but we see little attraction in this while it
makes the difficult transition to the world of apps.
Our original price target of 330p was set before the full depth of exceptionals
became clear. We trim it to 300p but hope to upgrade as app sales develop. We
also point out that Telegraaf Media Groep (TELEG: Amsterdam) is valued a
consensus EV/ebitda for 9.8 for 2012, falling to 7.3 in 2014. Telegraaf is a
more diverse media group, with a bigger web presence and also with radio. But
seen as an aspiration for Mecom, it suggests a ‘one day’ target of 725p using
our forecast ebitda for 2014. By that metric, 300p looks reasonable.
Mecom’s habitual use of heavy restructuring charges means ebitda is not yet a
trusted metric. For the moment, net cash from operations looks a more realistic
guide. EV/ operating cashflow is an attractive 4.8x in 2014. Meantime the yield
is attractive. We will obviously need to update our forecasts as we start to
track progress on app sales.


-0- Jan/26/2012 07:52 GMT

Huge Volume changing hands today 560k so far looks like Aviva has found a willing buyer for more of their stock

http://www.lse.co.uk/ShareNews.asp?shareprice=MEC&ArticleCode=xrv4u37yitccl44&ArticleHeadline=BRIEFRESEARCH_ALERTJP_Morgan_raises_Mecom_price_target

JP Morgan raises Mecom price target to 321P from 311P

Herrin, pass on your comments to the editor. let them know their boys are not doing the job.

Why do people continually refer to mecom as "Debt-laden Mecom". They have reduced their debt to an amount that is certainly managable. Debt laden suggests otherwise,

Mecom to charge for 10 online titles
25 January 2012 12:00 AM
http://ind.pn/zCPHT1

Small-caps:
By David Keohane and Bryce Elder
Published: January 24 2012 20:22
http://on.ft.com/zH4det

I am presuming that cash is the special dividend from the Norway sale. Now if they can sell Denmark and combine that into the special dividend...that would be nicer!