At Global Television’s AGM, management gave little guidance as to likely financial results this year. Perhaps that’s not surprising—providing television services produces irregular revenues and profits. But it was much more worrying to hear management quantify the costs of investing in high-definition television broadcasting that we talked about in issue 210/Oct 06 (Speculative Buy—$0.945). In short, the $31m that will need to be invested over the next 3–4 years will consume much of the lovely strong cash flow that attracted us initially in issue 189/Nov 05 (Speculative Buy—$0.975). And it’s a particularly large investment for a $38m company. While Global Television’s lower debt levels mean it can meet such commitments more easily, the $31m has to come out of shareholders’ pockets one way or another. While we don’t see a reason to panic, Global Television looks like it will produce far less free cash flow than we previously hoped. We’re downgrading to HOLD.