SNI has gone up 23% in four months. It is projected to earn .61 in the first quarter. In last years first quarter, it earned .62. SNI is an example of all stocks rising along with the tide regardless of what is going on specifically with the company. With the Dow Jones average at around the 13,000 level, everyone has risen. With gas prices going to over four dollars per gallon within weeks nationwide, I believe that this is not a good time to chase stocks, especially any that have been on a tear lately, and are projected to show an earnings decline in their next quarterly report.
From 37 to 55 in less than six months. Too rich for me here in the 50's. I'll take a look again in the mid 40's. At todays levels I'm afraid if the whole market comes down, SNI will too. And yes, with stocks back to 2007 levels, I believe they have gone up considerably and are due for a correction.
Missing a couple of big points. Advertising rates are very strong and SNI performance is reflecting this. Also, everyone is chasing content and SNI has lots of it (and very cheaply produced). Thus, they are a prime takeover candidate. Additionally, they just raised their dividend...always a catalyst to higher prices. And, as gas prices increase (a fact already in the market) people tend to travel less and thus, watch more TV. All in all, a good outlook for SNI (and other network stocks). It might be a bit ahead of itself here, but it is a buy on any pullback.