Stock Price EVCMore...Stock Price EVC 03/09/2010 – 03/15/2010Zoom: 1D 5D 1M 3M YTD 1Y 3Y 5Y 10Y Max XNYS:EVC:-0.14|-4.55% Morningstar's Take EVC Access Premium with a free trial Morningstar's Take EVC Entravision Communications benefits from growth opportunities within the Hispanic population of the United States. Already the nation's largest minority group, the Latino population is growing about 8 times faster than the rest of the U.S. population. However, we think Entravision's heavy debt burden will eventually make its equity worthless.
IMHO Morningstar's article had nothing to do with EVC's minor slide. I also feel the info in that article is completely out dated. In fact its no more than spam to pull in subscribers to Morningstar's dwindling circulation. It also states two sides in the article, bulls and the bears, and both are clearly objective in their nature. If the entire population swings to the internet broadband TV pipe, then EVC will convert minus the extravagant FCC fees. I also suspect that radio broadcasting will survive for quite some time, since we all know that satellite radio has done so well (sarcasm). HD radio conversion is imminent but I expect that will take at least another 3 years. In the face of a severe downturn EVC picked up even more stations. I will admit that management was sleeping at the helm, but I feel that they won’t make that same mistake again. I guess I don’t see your point. In fact it’s rather moot.
Ouch! I guess this is why the shares took a dive this afternoon. I'm aware of their debt issues, but I would have never concluded that it would eventually make the shares worthless. With advertising revenues becoming healthier and the World Cup coming up, I think this will do ok in the short term - not so sure about a year or two from now.