November 2018


Stock I'm watching this month:-

NEC - Nine Entertainment Co. Holdings Limited

Sector: Consumer Discretionary
Market Cap: 1.48 Billion
Price/Earnings: 7.08
Price/Book: 1.33
Return On Equity: 20.02%
Return On Assets: 9.68%
Debt/Equity: 14.22%

Reasons to watch: Nine has some of my favourite programs such as the Voice Australia, Australian Ninja Warrior, Your Money, Family Food Fight, Travel Guides, Channel 9 news, etc. It also airs free movies and reality shows, including those that you can access on your phone via your mobile app. However, liking the company product may not be reason enough to invest in the company. Recently, the share price tanked after it announced a merger with FXJ (Fairfax Media). Although, I view this merger as something positive, the market thought otherwise. I originally hold this company as a Clone Strategy as Wilson Asset Management held it as a top 20 portfolio but unfortunately not anymore. Alex Waislitz which holds FXJ (although just a minor percentage of their portfolio) may become an NEC holder if they decide to hold on to their stake post-merger. The valuation does look enticing and I will accumulate more at this price and re-evaluate if/when Alex drops it from their portfolio.

Sentiment: Buy
Disclosure: Held
My Strike Price: $1.5 (Morningstar Fair Value: $1.94)

Disclaimer: This does not constitute any financial advice or stock recommendations. As always, Do Your Own Research.





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