Seven Network Limited

Seven Network - $5.10: Just two year's after acquiring a 26% stake in MGM studios, Seven has decided to make an early exist with the sale of its stake for $A659m. While the sale itself is not altogether a surprise, the sale price achieved has stunned many in the market. Either way the deal has certainly taken the pressure of the share price - on news of the deal Seven's share price rallied 20% to $5.07 before easing back to current levels. When all's said and done though, it's still trading at a discount to the price at which it was trading at the time of our last review on May 8 (Accumulate around $5.50). While this is disappointing, we feel that an increasing number of investors and institutions will now be willing to take a second look at the company. We'll be looking towards the release of its full tear results due out in early September. Until then, ACCUMULATE.