Float timing is perfect for Nine Network THE hedge fund controllers of the Nine Network have got the timing of the refloat about as close to perfect as they could reasonably expect. The overall sharemarket is at its strongest since before the GFC in 2008. But interest rates are at their lowest in 60 or so years. That's a most unusual combination. It's sent investors scurrying for shares to buy. What Nine offers is paper that's outside the dominant - and increasingly expensive - big four banks and the resources sector. Further, they are shares with a strong consumer brand, but one not under direct pressure from the high value of the Aussie dollar. The one macro weakness is the weakness of advertising, which is both cyclical - the less-than-sparkling economy; and structural - the challenges faced by free-to-air TV. Within that, Nine is in something of another unusual sweetspot because of the weakness of Ten. This has allowed the two top networks to split close to 80 per cent of FTA advertising revenue. When normally the ratings leader is at 40 per cent and the other two tend to cluster around 30 per cent. One ad revenue point is worth around close to $18 million; so five points could add $90 million to annual network revenue. This has been reinforced by Nine CEO's David Gyngell's move pre-float to add Adelaide and Perth to the core network. He also did it without over-gearing the balance sheet. The networks are also in a sweet spot with their additional channels. Yes, they've drained eyeballs from their main channels, but they've been lucrative 'cheap runs' and a crucial weapon against Foxtel. In time, they are going to actually cost money to run. They could also destabilise the fundamental metrics of the main channels. But all that's manana, long after the shares are sold.