I have taken a significant (76K shares) position in EMMS. Here are a few reasons why:
1) The 2012 presidential election is going to unleash a few billion dollars of advertising money. Some of it will flow to terrestrial radio companies like EMMS. 2) At least two radio CEOs are very bullish on the sector. I know CEOs are typically bullish but taken together with everything else, their comments are very encouraging. Jeff Smulyan of EMMS: "We've seen remarkable trends in the last few months" Alfred Liggins of ROIAK: "May and June pacings have been strengthening over the past few weeks and both months are now pacing up double-digits" 3) The new financing, while costly, basically takes bankruptcy off the table till 2014 (or for a couple of years at least - and that is enough for me) 4) Costly financing did not hurt the share price of ROIAK and the stock has done wonders since then 5) And last but not the least, LTF (longtimefollower is one of the smartest investors I have seen, especially so in radio stocks) is bullish on EMMS.
I am expecting the stock price to go up by 30% to 40% in the next 2 to 12 months.
I agree with all your points.I would like to add couple of more EMMS could find a buyer at good price for the station that they are trying to see.This way they can pay some of the high interest debt CEO can again try to take it private at a price >$2.00