at $29. Nice move today. At $29 I figured the stock was worth $32 just on the worst case scenario of 6% revenue miss for the quarter.ETM hit $34 after the last quarter report , and 6% of $34 is $2( 6% of revenue comes from the six station it owns in New Orleans and the percentage of revenue they contribute normally).
It's hard to say. If you in it for a long term investment ETM has the best track record with earnings and revenue of all the radio operators and as I said $32 seems to fairly value ETM . No doubt I would not have disliked making 8% on my money in one day, but in the short run you don't know how Wall Street will react to ETM meeting revenue estimates but taking a big charge for Katrina related expenses.6 radio stations in New Orleans with almost 0 revenue (they have some national advertising but mostly local which were all wiped out temporarily)amount to 6% of all ETM's business(6% is the possible worst case scenario).Last quarter the stock went to $34 after beating estimates , I don't see ETM exceeding that this quarter under the circumstances. Long term ETM will continue to by distressed stations and turn them into money makers , buyback stock and go after the newspapers' advertising clients . Longterm winner and a buy. Shortterm ,probably a pull back to the $30s after the news of a quarterly loss sinks in.