BSkyB looks set to reach rapid profit growth

INVESTORS in BSkyB have had a rollercoaster ride in recent years. Caught up in dotcom mania, the share price increased from £6.00 in November 1999 to a high of £21.58 on March 6th 2000, an increase of 360% over four months.

Then, the bubble burst, resulting in sharp price declines for highly rated stocks globally. Sky did not escape and nearly three years later, the share price is now back to pre-bubble levels.

Of more interest, perhaps, is the fact that fundamentals for the stock have improved significantly over the past three years and the company now looks set to enter a period of rapid profit growth.