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Emmis Communications Corp. Message Board

  • zardaaz zardaaz Feb 11, 2008 10:59 AM Flag


    This is probably the biggest STRONG BUY signal ever. We've got Cramer trashing an entire industry when it's already flat on it's back gasping for air. You can be sure that Cramer's co-horts are buying into this weakness and will accumulate huge positions while Cramer talks it down.

    Radio Is Just Done

    By Jim Cramer Columnist
    2/8/2008 10:07 AM ESTkets

    No common sense allowed. That's how I feel about the hung deals that are left in the pipe. What is the point of closing Clear Channel (CCU - commentary - Cramer's Take - Rating)? Has anyone looked at the comps? Has anyone looked at Cumulus (CMLS - commentary - Cramer's Take - Rating)? How about Emmis (EMMS - commentary - Cramer's Take - Rating)? Where's that Cumulus buyout? Is that really Emmis hanging down there at $3? That used to be a real company.

    I see Entercom (ETM - commentary - Cramer's Take - Rating) got upgraded today, to which I say, "Oh, please." The upgrade stresses that it doubts that radio sales and profits will fall more than last year and that the declines in business are only running down 2% -- oh boy, now that's what I want to buy. The company has an outsized dividend of 12%, and that's worth getting. But Entercom feels like a bond where you give them your money and you get a big coupon, but there will be nothing left in the end. And ETM is the best in show, much better than CCU and has much less exposure to the new ratings systems that I think will play havoc with the numbers.

    The radio fundamentals overall are so poor that they only thing these guys can do is pray that Sirius (SIRI - commentary - Cramer's Take - Rating) doesn't merge with XM (XMSR - commentary - Cramer's Take - Rating), because then free radio will have to cut commercials even further.

    So much for the great cash cow. Radio is going away as an industry.

    But we can't stop this disaster. They can't stop this disaster. No one can stop it. It is just a train wreck, and everyone knows it. EVERYONE! Just like the Tribune (TRB - commentary - Cramer's Take - Rating) train wreck.

    So painful.

    Sure, TV stations. Sure, outdoor ads. All supposed to be worth so much! Just like the Cubs! But have you seen Lamar (LAMR - commentary - Cramer's Take - Rating) lately? That sums up outdoor ads. For certain.

    In the late stages of that bull market, there were a lot of stupid deals. This one and Tribune were the most stupid. If I were at my old hedge fund, I would be itching to short the bond paper the moment it came out, no matter how rich the terms. Because egos demand that this deal close. And nothing's stronger than ego. Including common sense.

    At the time of publication, Cramer had no positions in the stocks mentioned.

3.76+0.06(+1.62%)Oct 25 3:59 PMEDT