SAX stadium australia group

(sax) valuation

  1. 230 Posts.
    Not a bad day at all. SAX has taken all long time to get a decent move, but finally its has happened. The chart is looking quite strong and the fundamentals have improve considerably over the last year. What SAX hasn't spelt out, is the amount of money they are recieving from Telstra each year. It must be considerable sum and with the Rugby World Cup only about 70 days away, things are finally looking up for the poor stadium. Telstra has been given approval by the Rugby World Cup board to keep their sponsorship during the games. This is a great result for SAX. All we need now is for the Wallabies to win their matches and for the Stadium to be filled to capacity every match. Recently the SAX completed over 90% of the construction required before the world cup. This means that the stadium can hold 83000 people greater than the 80000 previously expected but significantly less than the 110,000 for the Olympics.
    Even without the World Cup SAX should be in strong hands, with the Swans winning and gaining massive crowds whenever they play. Also if they get a home final, it will be held at Telstra Stadium. Remember also than in the next year there will be large discussions about moving one day cricket there. While you might think that cricket will never be played there, well too late it has already been. The SCG is just too small capacity wise for one day cricket. It sells out very quickly and many potentially paying customers miss out. Cricket Australia is seriously considering the revenue it can generate playing games at Telstra but the problem is with the Old Boys (members) at the SCG not wanting to break with tradition.
    The latest Cash flow statement looks healthy for Telstra Stadium and at present levels represents fine value. With no major cash outflows projected in the future, all they have to do now is pay their debt holders and equity holders and once the cash flow builds up, watch for a nice dividend especially at the current prices.

    Look for SAX to trade up to 75c with Cash flow from operations totaling approx 12M using a required rate of return of 10% and nearly 100M shares that works out as $1.20 a share.

    75c is a Fair target in the next few months
 
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