Sunday, October 6, 2013

"Can't ever get enough of those Television Broadcasting stocks. Here is another one to add to your list: Nexstar Broadcasting Group Inc., NXST"

Dow Jones Industrial Average  14,994.68  (Way Down) Week ending 09-27-2013
Dow Jones Industrial Average  15,072.58  (Up)   Week ending 10-04-2013

I have loved the Broadcasting and Media stocks going all the way back to Paramount Pictures and Gulf and Western.  CBS Corp., Disney/ABC, Scripps Network, AMC Networks, Time Warner, Comcast/NBC,  LionsGate and the list of winners goes on this year.

Alexander Eule over at Barron's in his September 21st article brought this next stock to light.

Nexstar Broadcasting Group Class A., (Symbol NXST, $44.95) is the next name to add to the successful group above. Eule mentioned Nexstar and some other stocks in regards to the broadcast spectrum licenses and spectrum that they own that could be worth as much as the whole current given value of the company.

Nexstar Broadcasting, based out of Irving Texas, has a PEG ratio of 0.0041. The stock has a year to date return of 324% and is trading near its high for the year of 45.42.

There are only 30 Million shares outstanding of the stock and the company has a market cap of 1.35 Billion currently, so this is a baby Mid-Cap stock.

The company with its local TV stations across small markets around the country should benefit due to the AD market recovery and should also get a windfall from all of the political ad spending and ObamaCare advertising.

The stock trades at a low PE ratio of 7.9 and does pay a dividend equal to 1.07%. The company current ratio is 2.658 to 1.

The Big news is that earnings for 2013 are projected
at $1.05 for 2013, but then rocket up to $3.57 per share in 2014, a huge rise in earnings. The company also is a digital company that creates websites with community interaction.

The big kicker to the stock, though, is the value of the broadcast spectrum that Eule mentioned in his Barron's article, so you can buy this one and sit on it a while.

Sometimes, you just have to admit that somebody else has a great idea and just go with it.

Lou Rukeyser would happily go along with that line of thinking.

Always good to see you, Lou!  I wonder what you would say about this government circus show.


No comments:

Post a Comment