Financial Trading Blog
Stock of the day 30/03/2016 – Wireless Group PLC
After some heavy losses thanks to a rather sour update in June, when it was still named UTV Media, the stock was circling 2 year lows of £1.40 at the start of July. Yet the company was soon to by swept up in 2015’s M&A fever, with reports coming out towards the end of August that UTV would be selling its TV assets. The confirmation of this in mid-October only helped the stock’s recovery, hitting an 8(ish) month high of £1.92 as it was confirmed that ITV would be stumping up £100 million to take UTV’s television channels off its hands.
(Source: IT-Finance.com 30/03/2016)
That deal eventually was completed at the start of March, UTV Media becoming the more aptly named Wireless Group, the company now firmly focused on its impressive radio portfolio (including talkSPORT, talkRADIO, Virgin Radio UK and Pulse).
Yet the intervening period between the announcement of the sale in October and the competition of the deal wasn’t particularly kind to Wireless, and things only got worse once it was freed of its TV division, the stock touching a 7 month low of £1.60 in the aftermath. Things did begin to pick up as March wrapped up, however, a ‘Buy’ rating from Numis Securities (alongside a £2.47 target price) leaving Wireless Group at a current trading price of £1.74 (IT-Finance.com, 30/03/2016).
It will be interesting how the full year report is laid out on Thursday, and how well the company’s figures stand up when the television division is stripped out. Yet if Wireless Group can reassure investors that its renewed focus on its not-insignificant radio presence is a winning strategy then the stock may well find itself on the road to recovery.
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