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Entravision Communications Corporation Message Board

  • kathy5363 kathy5363 May 17, 2010 11:45 AM Flag

    Entravision Performance

    Does anyone have an opinion as to why EVC is performing so poorly in relation to somewhat similar broadcast stocks such as SBSA, CMLS and ROIAK?

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    • I would have to say EVC is performing in line relative to its peers regardless of the current share prices. I think EVC’s resources and larger viewing populations make it more attractive than SBSA. However CMLS is probably going to garner more attention do to the fact that it has greater resources and a larger broadcast area. Hispanic viewing populations in the EVC broadcast area have by no means become ghost towns contrary to a previous post. It would be fair to say that EVC has just come out of a massive restructuring that almost bankrupted the company. During this process it managed to cut costs within the company. They managed to increase their resources by purchasing more stations. They eliminated exposure to real estate losses. They’ve regained a B+ credit rating and it share price is up 1200% from an all time low of $.15. It has restructured its debt obligation in a way that reduces interest and payments over time. Plus the company supports the communities within the viewing areas, and advertising revenue has picked up. There are a couple of things that stick out at this point. There has been no sequential quarterly profit based on revenue growth over past forecasted and realized earnings for the company for quite some time. This is the largest contributing factor at this point in relation to your question.
      The company does not provide any forward guidance. A moderate number of investors probably stay away due to their ethnic altruism. However the Hispanic population will only grow regardless of protectionist measures by some governments. I think the next two quarters will be key in pushing past the $5.00 a share price. I personally like the fact that it is a U.S stock and it has great upside potential at this point. Market headwinds are strong at this point, but I have seen share price stability in the recent downtrend. The company has retrenched and is showing signs of strengthening.

    • I understand the current movement in the market. However, my question is a little different. When looking at EVC in relation to similar broadcast stocks such as Cumulus, Radio One, SBS, Emmis & Entercom, I think EVC's fundamentals for 4th Quarter 2009 and 1st Quarter 2010 are comparable, with the exception of ETM. However, EVC's year to date stock price performance in general is half of these other broadcast stocks. Year to date, EVC is at 93%, CMLS is 202%, SBSA is 255%, ROIAK is 163%, ETM is 188% and EMMS is 192%.

      • 2 Replies to kathy5363
      • You should compare apples to apples. Spanish Broadcasting has excellent properties in big markets. Entra has a number of properties in out of the way ghost towns where the Hispanic population is either leaving or has no money>jobs. The management at Entra is weak and suspect. They paid too much for properties and they have too much debt. In a deflationary era which could last for 10 or more years you do not want to be a debtor. I will give them a year and Entra will be gone.

      • Agreed, The hispanic market recovery was slower to start but should be much more robust than general media. They were just begining to see the 10% YOY growth in April. So this quarter should be the first of many good quarters at EVC.

        If you listen to the call you can hear, for example, automotive had not been as good to Spanish media as other media in part because the initial rebound was in luxury cars which do not typically advertise in Spanish media. They expected Chrysler to begin to advertise again this quarter. They were a zero last quarter.

    • Kathy, EVC trades along with the overall market....when people are feeling good about things, the stock goes up, right now, people are scared about Europe and the market is skittish.
      The company is improving and the market will continue to get stronger this year. Buy the dips.

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