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Nexstar Broadcasting Group, Inc. Message Board

  • flickbeard flickbeard Mar 23, 2009 9:00 AM Flag

    Default old news, Here's more Good News!

    Exciting developments are rife but it doesn't seem to move the stock, basically because the company is institutionally owned and fload so minimal. When it will go up it will be massive. Good news this morning.

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    • greg.torres Mar 23, 2009 12:40 PM Flag

      Isn't this typical. Great news again and look at the movement of the stock.......nothing. This will be a great stock, give it 3 or 4 more years. I didn't realize that NXST owned about 8.8% of all television viewers. That number is astounding! Wait and see.

    • I wish I saw a massive move to the upside, but the fact is Nexstar bought stations with debt at a higher multiple of cash flow than stations currently sell for.

      You can double cash flow through outstanding management and still lose everything in this environment. The asset values are declining twice as fast as revenue is growing. And the fact is revenue didn't grow, even in an election year.

      There's no one to buy Nexstar at a price that exceeds the debt, and that's very good for management as they will be able to plunder the company for high salaries. It is pathetic to pay the CEO a big salary in a company that announced ZERO capital improvements. A TV station with a replacement only cap ex budget is knowingly allowing the asset value to decline. They have to do this because cash flow must all be devoted to debt service. These guys are just subprime home owners in better suits. They owe more on the stations than they could get through a sale. Moreover, just like subprime buyers, there are many media companies in the same boat so assets are flooding the market and driving values down more.

      It's sad for investors but management has a much better job than most anyone in the industry.

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