Wonderful buying opportunity. I now own 1% of the public float. This company COULD earn $1 in EPS in 2010....and yet I bought some for as low as $1.18 today. That's INSANE....especially when you consider they just negotiated very FLEXIBLE terms on a credit agreement amendment, at the end of June, with very fair/modest increases in their interest rates.
I believe stocks like CMLS should be trading more at $2.50-3.50 now (3x next year's earnings estimate), and NOT $1.25.
For the record, I was also aggressively buying ROIAK today....and dumped all my SALM to help fund the purchases. (That one has gone too far too fast...and is due for a correction, I believe.)
I just don't have the time to study debt. And, generally speaking, I think I can make larger returns in equity. The only quasi-debt I own is a small position in EMMSP. I'm not buying it now (although it certainly is attractive), but found it to be IRRESISTIBLE when it was $1.00-1.50.
longterm, what's your target to sell, $3.50, or even higher? I think this company eventually will be taken private at a price close to $10 when the econ get back and credit market M&A returns. But that probably won't happy in just one or two years.
Gosh, I don't know. Short-term, I would say $2.50-4.50, before the end of this year. Possibly $2.00-2.50, within the next 4-6 weeks (assuming market remains stable to up in the fickle Sept/Oct time frame).
I agree the sector is cheap....but I have been REDUCING my holding in ETM, to increase my position in CMLS and ROIAK. Not that I'm bearish on ETM, it's just that I see ETM selling at maybe 3x next year's earnings, whereas CMLS and ROIAK may be selling for little more than 1x next year's earnings. Yes, CMLS and ROIAK are more leveraged than ETM, but that doesn't justify their selling so cheap, relative to ETM....especially now that they have, as far as I am concerned, RESOLVED any lingering potential "default" issues (that is, they are NOT GOING TO DEFAULT, imho).
Long, I know you're a big time media investor, but if you are looking to diversify in to some other sectors, check out Rodman & Renshaw Capital Group (RODM). The stock has recently made a big move and the chart looks better than a playboy centerfold. Most people think it's not close to being done yet. Do some dd when you get a chance.