Nov 14, 2012

Media briefs: Seven’s AGM optimism … Hun digs pig … BBC probe …

Seven's AGM optimism ... Hun digs the pig ... BBC probed by the enemy ...

Investors confused on Seven’s forecasts. Is the phrase “intelligent investors” a contradiction in terms or just a convoluted way of explaining away the oddities of the stockmarket? Why else would investors, who have spent months pounding the shares of Seven West Media down to record lows, suddenly chase them higher yesterday (they closed up 11% at $1.29) after the company revealed another profit downgrade and cost cuts?

Investors ignored the fact the forecast for $250 million of earnings before interest and tax (EBIT) for the six months to December for Seven West was $59 million under the $309 million EBIT earned for the six months to December 2011. No, they concentrated on the news that under new CEO Don Voelte, the company would be cutting investment by $14 million and finding cost cuts and improving revenue by $60 million.

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