ROIA are class A shares and ROIAK are class D shares.Class A are voting shares and Class D are non voting shares.Almost all the voting shares are controlled by CEO and his mother. This is one negative for Radio one .Even if it is undervalued it will be really hard for somebody to buy this company.
We don't NEED somebody to buy the company. We just need to make sure that the common stockholder continue to CONTROL the company, and control the excess cash flow (to be able to keep buying back common stock).
I think management is doing a great job, and I think it is BALL-SY for their to be so confident, during the darkest part of the recession, to just "blithely" be buying in their stock, hand over fist, when the only other company I'm aware of, that could still do that (and has since stated that it is STOPPING its stock buyback for now) is Entercom.
We had some MAJOR dumping here, since late last year, by institutions that held a HUGE chunk of the publicly floating equity. I'm talking Ariel, Fine Capital, and Citadel, predominantly. I don't think the stock price has NEARLY adjusted UPward as much as it should have, to account for the "pall" that was cast on ROIAK by all of the selling that went on. Eventually, within weeks, but certainly by shortly after the next earnings release, I think we'll see $1.00-1.25 on this stock, and probably more like $2.00-2.50 within the 1st half of next year.
We believe that Radio One could violate its leverage financial covenant toward the end of the year if trends do not improve… We are lowering our rating on the company to 'CCC+' from 'B-'._ S&P , June 25 09
Did S&P change its opinion as a result of good Q2 results ?