Rate my SIPP - ITV high conviction

Juno_Moneta

Thanks Fired - your posts are well worth reading. 

Cus

Your assumption with the future of ITV stock is that you expect that if it's undervalued compared to reality and your opinion then it must go up. Hope it does

d6fs1l

Putting aside the diversification argument... do you think the stock is mispriced? It seems that you do, from one of your earlier posts. But why? The market knows about the hidden asset and the current price reflects the currently available information. Interested to hear your rationale.

Juno_Moneta

d6fs1l said:

Putting aside the diversification argument... do you think the stock is mispriced? It seems that you do, from one of your earlier posts. But why? The market knows about the hidden asset and the current price reflects the currently available information. Interested to hear your rationale.

It’s not even my own rationale - a few minutes research throws up multiple repeated articles by media market analysts (who know much more than I do) all saying the same thing - the ITV Studios division on its own could potentially have a market capitalisation equal to the entire value of the parent company ITV Group. 

For example

https://www.theguardian.com/business/2024/nov/25/itv-share-price-takeover-bid-studios-cvc-tf1-all3media-mediawan
“Roddy Davidson, a media analyst at Shore Capital Markets, an investment bank, said a breakup would be a “very credible situation”, given the “trapped value” in the studios arm and the operational separation. ITV really in stock market terms has an incredibly low valuation,” he said. “There is clearly a dichotomy in the business between the linear TV business [and ITV Studios].”

And you can DYOR but it’s hiding in plain sight that ITV Studios is a valuable and desirable asset that will eventually achieve value recognition for ITV Group. 

https://deadline.com/2024/11/itv-stock-surge-takeover-sale-talk-1236186592/

“A sale or carve-up of ITV, which boasts revenues of £4.2B ($5.3B), would significantly reshape the European TV industry and would fit with the trend towards consolidation in the industry. A persuasive argument could be made that ITV Studios is ITV’s biggest asset, accounting for more than half of the company’s total revenue.”

https://www.reuters.com/markets/deals/itv-redbird-imi-hold-early-stage-talks-merge-production-businesses-sources-say-2025-01-30/
“ITV, RedBird IMI in early-stage talks to merge production businesses, sources say”

cfw1994

Juno_Moneta said:

Hi cfw - I don’t think I’ve said my intention is to hold this position for the rest of my life! 

Obviously at some point I will reduce or even close my whole ITV position. 

I have some targets in mind, eg I think this position can get my SIPP value to a sufficient level to enable the maximum drawdown available (LSA £268,275). 

There are other things I will eventually invest in of course. 

Perhaps people have got the impression I will only ever invest in ITV! I don’t think I said that so perhaps that assumption has crept in - happy to clarify. 

Okay….although your opening post suggested you have just moved 800K into *just* ITV.
I’m sure everything will work out fine for you 👍

Juno_Moneta

Yes ITV is my only holding right now that’s correct, although I’ve been investing in ITV on and off since 2023 so not ‘just moved in recently’. 

jimi_man

What price did you buy at? 

MeteredOut

Juno_Moneta said:

Yes absolutely agree - I do have some targets in mind and will take some profits off the table when the time is right. 

Will you be sharing what those targets are ahead of time?

Juno_Moneta

jimi_man said:

What price did you buy at? 

Please read my post on page 7 - i turnover tranches of this holding frequently - so there is no single buying price.
However my average is mentioned on page 1.

Juno_Moneta

MeteredOut said:

Juno_Moneta said:

Yes absolutely agree - I do have some targets in mind and will take some profits off the table when the time is right. 

Will you be sharing what those targets are ahead of time?

I mentioned on page 1 "My target is a £1m+ SIPP " - which requires a price of around 96p - so first target.

After that to enable the maximum LSA of £268,275, requires a principle of £1,073,100 which requires a price of around 102p - so second target.