At prices as low as .761. Now own 2% of the company.
I believe a bounce back to $1.05-1.15, in fairly short order, is almost inevitable...UNLESS the deals they are working on to sell stations should somehow be falling through. Which seems VERY hard to believe, considering the CMLS/Citadel deal pending, along with recent reports of continued solid advertising pacing data coming out, for the next few months, for radio. NO ONE is talking about radio ad revenues being down in 2011. We should be up somewhere between the low to mid single digits, for the year. There is absolutely NO reason that the stations that EMMS is looking at selling should be worth anything LESS than they were late last year.
The CEO wanted to buy the company out at $2.40, a year ago. The company, in my view, is objectively worth MORE than it was a year ago, based upon continued growth in advertising.
Current prices represent a gift, that solely relate to the fact that they will likely be in violation of their credit covenants, in about 6 months from now, IF they don't sell some stations, and pay down debt. IF.