Plenty of stocks look cheap right now, says Barron's Eric Uhlfelder, but that doesn't make them bargains. Once a stock slides below the $5 mark, it's usually a long, tough climb out of the bargain basement.
In 2008, many of the companies that became penny-stocks were household names, or at least well-known on Wall Street. They included retailers Rite Aid (RAD), Pier 1 Imports (PIR), Eddie Bauer (EBHI); radio broadcasters Westwood One (WON)
On Friday, a client asked me to generate a list of stocks trading at "less than cash." As I went about this process and identified almost 1000, I quickly realized how many companies have been wiped out. Many of the names were already in bankruptcy, but many others seem to be headed there. I noticed how many stocks are trading below $1 in my system (StockVal), and it blew me away. I then created a...
Off-Air (non-spot) revenue has surpassed last year’s midyear forecast by the Radio Advertising Bureau [RAB], and is expected to approach $2B by the end of 2008 - nearly a full year ahead of the projected timeline, the RAB reported.
At 9% of radio’s total revenue, off-air is composed primarily of online activity, followed closely by experiential marketing partnerships. Off-air revenues in the first half of 2008 were up 12% from the year-earlier period - the only sector other than network (up 3%) to record gains:
Westwood One (WON) operates two businesses, both terrestrial radio-based. The traffic division provides customized news and traffic reports, and earns revenues on the short, announcer-read ad spots embedded during these reports. The network division provides longer events such as sports which are then sent to member stations around the country.
This company, and stock, fully deserves its almost-penny stock price. Revenues have been falling for the last 4 years, at nearly double-digit rates. The ad business is brutally competitive, and Westwood faces stiff competition not only from...
I received an email from a SA reader who shared his skepticism about the radio market ?coming back?. A very valid opinion, but I offer this brief take to others in the financial community with similar beliefs that I shared back with him.
Terrestrial radio is evolving into a wholly new form of media, less about music and more about audio entertainment. Internet subscription services like Napster (NAPS), satellite services like XM (XMSR) and Sirius (SIRI)...
As I do
every day, on March 18th I received a breaking news email from
Inside Radio. To me, the three headline
stories for the day pretty much sum up the entire state of the radio industry
right now. I have discussed my thoughts
on all three in depth in other Seeking Alpha commentary, but they definitely
fall into the categories of the Good, the Bad and the Ugly.
On March 3rd, Westwood One (WON) announced another series of milestones had been crossed in their overall corporate restructuring and turnaround strategy.
The company stated it and former parent company CBS (CBS) have ?closed the transactions contemplated by the Master Agreement dated October 2, 2007, which solidifies a long term distribution agreement between the parties through 2017?. It went on to declare that ?Going forward, the Company will manage its business directly and separately from CBS Radio, and employ its own officers?. ...
As the radio industry heads into the thick of its earnings releases over the next week or so, the market seems to already be predicting 2008 will be a pretty awful year for the sector. To date, fourth quarter 2007 results have been released by industry heavy weights Clear Channel (CCU), Emmis (EMMS), Entercom (ETM) and Radio One (ROIAK), and CBS Corporation (Add as favourites (0) | Quote this article on your site
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