After having bought a block of 50,000 on 8/30, another 115,000 on September 6th. This is now my largest position ever in this stock.
I believe EMMS is drastically misspriced by the Street, and it should have its highest "fair value" that we have seen in at least the last 3 1/2 years, with the elimination of roughly ONE THIRD of its debt, from the recently closed deal to sell 3 of its radio assets, THAT WERE PRODUCING VERY LITTLE EBITDA. (We're giving up very little here, to get a lot.)
With the committed for sale of the L.A. station for another $110 M or so, that would take away ANOTHER 1/3 of the debt.
I continue to remain EXTREMELY puzzled on why investors are missing the attractiveness of the situation. If anything, it would HARDLY be out of the question, at some point in time, when the financing markets get better, for the CEO to make another run at the company. Imho.
This all having been said, EMMS's volatility makes it for an excellent trading stock, and I fully expect to take advantage of the "wiggles" to "surf" this thing...while maintaining a large core position. I see short term "fair value" at $1.00-1.15....and have a one to two year target of $3-4.
I should clarify that that L.A. station sale does not have to close for upwards of another 5 years or so, and Grupo Radio CAN elect to continue operating it under a LMA until then. So no guarantee that any additional debt paydown for EMMS is impending, by any means.