The recent U.S. Supreme Court Decision on corporate campaign spending is bound to open the flood gates for more money going into Senate and House races from both parties. Seems to me this would have a substantial impact in 2010 races. Of course, the big question is how much it will impact each major market area? My best guess is that it will be more than many now believe. Your point of view on this welcomed. JMHO.
I guess I spoke too soon about the positive price action, especially in light of today's strong market and GTN, which fortunately is bailing me out today. Hopefully this morning's selling is it, and we rise into the close as we generally did last week, but unfortunately my gut tells me we're closing below 6.50 today. I would be concerned by a break below 6.40, at least in the short term.
Gurd, I'm in on GTN as well. They are cheaply priced and in the hot beds of political this year. I think we could see a quadruple over the next 12 months. They are priced to go out of business at $2 and after 2010 cash flows they will be priced around $8 at 12 to 1 cash flow.
The stock performed amazingly this week given the overall market. Today was a new 16-month closing high. Just as impressive, it refused to give up any the past two weeks' gains, though I kept hoping for a dip to get in at lower prices. Though it still might retrace, I can also see us breaking up to 7 next week. So I took the plunge and doubled my positions in this and GTN, which also held up well this week and looks poised to go higher. (5K and 10K shares, respectively). Before the economic poop hit the fan, both companies were trading at around three times current levels.
Yes, it will increases political significantly. I see Louisville, Charlotte, and New Orleans right off the top. I think if we get a Senate race in Texas b/c Kay Bailey jumps out then it will be huge. The supreme court has basically taken the mud slinging factor and upped the volume a few notches. We as broadcasters need to get our attorneys ready b/c I have a feeling you are going to see some crazy ads coming real soon. No holds barred anymore, it will be fun to watch.