Issue link: https://maltatoday.uberflip.com/i/970554
maltatoday WEDNESDAY 18 APRIL 2018 12 Business Today Market Summary as at 17/04/2018 Equity Official List Session State ................................................................... Market Closed Number of trades ........................................................... 110 Volume Traded ................................................................. 1,101,731 Value of € denominated securities .................................... 1,319,644.17 Value of US$ denominated securities ................................ 0.00 Value of GBP£ denomi nated securities .............................. 0.00 Current Index ................................................................... - Previous Index ................................................................. - Change in Index (%) ......................................................... - Bank of Valletta plc ........................ 1.770 0.00% Mapfre Middlesea plc .................... 2.100 0.00% FIMBank plc .................................. 0.550 0.00% MIDI plc ........................................ 0.356 1.71% GlobalCapital plc ........................... 0.300 0.00% Plaza Centres plc ........................... 1.040 1.96% GO plc ........................................... 3.500 0.00% RS2 Software plc............................ 1.380 2.22% Grand Harbour Marina plc ............. 0.750 0.00% Simonds Farsons Cisk plc ............... 6.850 0.00% HSBC Bank Malta plc ..................... 1.700 -1.73% Tigné Mall plc ................................ 0.950 0.00% International Hotel Investments plc 0.585 -2.50% Pefaco International plc ................. 2.240 0.00% Lombard Bank Malta plc ................ 2.360 0.00% Santumas Shareholdings plc ......... 1.500 0.00% Malita Investments plc ................... 0.830 0.00% Malta Properties Company plc ........ 0.458 0.00% Malta International Airport plc ....... 4.880 0.00% PG plc ........................................... 1.310 0.77% MaltaPost plc ................................. 1.850 0.00% Trident Estates plc ......................... 1.850 -2.63% Medserv plc .................................. 1.110 0.00% MSE Index Regular market closed –17/04/2018 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change l BOV 51,292 90,786.84 19 1.770 1.770 1.770 1.770 0.000 t HSB 17,558 29,908.60 6 1.710 1.700 1.710 1.700 -0.030 t IHI 1,034 604.89 1 0.585 0.585 0.585 0.585 -0.015 s MDI 34,200 11,993.40 2 0.356 0.350 0.350 0.356 0.006 l MIA 1,000 4,880.00 2 4.880 4.880 4.880 4.880 0.000 s PG 3,815 4,997.65 1 1.310 1.310 1.310 1.310 0.010 s PZC 103,900 107,954.00 5 1.040 1.000 1.040 1.040 0.020 s RS2 10,207 14,009.22 5 1.380 1.360 1.360 1.380 0.030 l SFC 1,017 6,966.45 1 6.850 6.850 6.850 6.850 0.000 l TML 2,528 2,401.60 1 0.950 0.950 0.950 0.950 0.000 t TRI 2,000 3,342.40 2 1.850 1.610 1.610 1.850 -0.050 l G20A 1,165 1,294.08 1 111.080 111.080 111.080 111.080 0.000 s G21A 6,115 7,098.29 2 116.080 116.080 116.080 116.080 0.030 t G22B 10,000 11,683.00 2 116.830 116.830 116.830 116.830 -0.020 s G28A 47,000 63,261.20 3 134.660 134.550 134.550 134.660 0.190 s G28B 27,000 35,594.10 2 131.830 131.830 131.830 131.830 0.120 s G29A 11,100 15,484.50 1 139.500 139.500 139.500 139.500 0.250 t G29B 124,000 135,751.20 4 109.680 109.380 109.680 109.380 -0.120 s G30A 82,500 117,457.41 3 143.000 142.190 142.190 143.000 1.000 t G31A 53,500 76,407.50 2 142.900 142.700 142.900 142.700 -0.200 s G32A 20,000 27,388.00 1 136.940 136.940 136.940 136.940 0.190 t G32B 50,000 67,000.00 1 134.000 134.000 134.000 134.000 -0.250 t G33A 56,000 74,028.77 3 132.290 132.000 132.000 132.010 -0.010 s G34A 5,000 6,541.50 1 130.830 130.830 130.830 130.830 0.080 s G35A 9,500 9,876.20 2 103.960 103.960 103.960 103.960 0.040 s G36A 60,000 64,934.00 2 108.290 108.190 108.290 108.190 0.190 l G39A 21,000 21,218.00 4 101.050 101.000 101.050 101.000 0.000 s G40A 50,000 58,457.60 4 116.960 116.860 116.960 116.860 0.060 t G41A 98,700 104,748.77 4 106.210 106.060 106.110 106.060 -0.050 l BV18A 5,000 5,000.00 1 100.000 100.000 100.000 100.000 0.000 s BV19A 33,100 33,761.20 6 102.000 101.800 101.800 102.000 0.200 l BV20A 8,500 8,735.80 3 102.800 102.760 102.800 102.760 0.000 t BV30A 50,000 50,500.00 2 101.000 101.000 101.000 101.000 -0.500 t EF27A 1,100 1,141.80 1 103.800 103.800 103.800 103.800 -0.200 l HP25A 4,700 4,963.20 2 105.600 105.600 105.600 105.600 0.000 s IH26A 7,900 8,216.00 1 104.000 104.000 104.000 104.000 1.000 l MD26A 9,600 9,984.00 1 104.000 104.000 104.000 104.000 0.000 t MS23A 900 954.00 1 106.000 106.000 106.000 106.000 -0.010 t ST27A 12,800 13,312.00 3 104.000 104.000 104.000 104.000 -0.490 l VH24A 7,000 7,007.00 2 100.100 100.100 100.100 100.100 0.000 Netflix up 60%, stock overvalued say analysts Morningstar equity analysts Netflix has a small sustainable competitive advantage over peers, but the share price is significantly overvalued Netflix started 2018 with strong subscriber growth as the firm beat its guidance once again – hitting 125 million subscribers. The stock is up 60% since the start of the year from $192 to $308. Despite the increased number of subscribers, Morningstar equity analysts believe the stock only has a small sustainable competitive advantage – expressed as a narrow moat rating. Analysts set the fair value estimate at $90, meaning the stock is significantly overvalued. We project that the firm faces increased competition over the next five years, necessitating an ongoing cash burn and limiting the rate of margin expansion. While segment contribution came in above our projections, the firm pushed out its content and marketing spend into the second half of the year. As a result, the free cash flow loss for the quarter was only $287 million, an improvement sequentially from the loss of $524 million in the fourth quarter. However, management continues to project free cash flow burn of $3 billion to $4 billion for 2018, up sharply from $2 billion loss in 2017 Netflix reported better-than- expected subscriber growth in both the international and US segments. Management persists in attributing its net add outperformance to excitement around original content and the continued adoption of streaming video. Netflix continues to expand its streaming base, ending the quarter with more than 118.9 million global paid subscribers, up from 94.36 million a year ago. Revenue of $3.7 billion came in just ahead of our $3.59 billion estimate with the majority of the beat coming from domestic streaming. Domestic streaming monthly revenue per paid member came in at $11.25, up 12% year over year and ahead of our $10.85 estimate. For international streaming, revenue of $1.78 billion was slightly above our $1.74 billion estimate as monthly revenue per paid member came in at $9.77, up 21% year over year. While the segment contribution margin of 27.7% outperformed our projection by 363 basis points, operating margin of 12.1% came in tighter than our 10.5% expectation. The firm continues to ramp its R&D and G&A spend, limiting leverage of these categories. Part of the increased spend for the firm is built out of its own studio. While Netflix is well known for its original content, most of the content was produced by an outside studio such as Lionsgate, including smash hit Orange is the New Black, and Netflix acted primarily as the financier and distributor. With the addition of a physical studio, Netflix could avoid some of the issues around production scheduling as well as attract talent who want to remain in LA. The firm also continues to spend on technology development, particularly on the mobile side. While the mobile opportunity could be large in a market such as India, we believe that the firm's premium pricing will limit the uptake, particularly if competitors such as Amazon and Fox's Hotstar continue to undercut Netflix on price.