the company EPS was .06 for 1st half of the year. if all is consistent with 1st half, they will have .12 EPS which would put them at a PE multiple of 20 which is slightly less than Boeings multiple. Also, the multiple of 20 is right in line with the average of the companies in the russell 2000. Maybe since this is a small cap international stock, it should get a lower PE ratio? I can see that being a reason the stock goes lower but i think there is now expectations that revenue should increase and therefore EPS should also increase if they can keep those awesome margins. Only time will tell. Anyone have any thoughts on APT? I think it looks good and there is definitely not as many traders on that one as there is with RADA.
yeah- Longtimefollower- are you going to chime in on EMMS? It's been awhile. I think u mentioned you still had some in your portfolio.
i totally agree with you smaycs4. However, This is probably a good time to take some off the table if you are long. I get the feeling that the market is headed for a correction. The market is at or near the July highs but internally, i can see that there is less participation in the global markets when compared to July which means there are less stocks helping to move the market higher which to me is a sign that the market is weakaning and the long overdue correction is coming.
patrick walsh, CFO sold another 150,000 shares on 8/4 and8/5??? I just found that out by clicking insider transaction on the left of yahoo finance. I didn't see anything in my ameritrade or schwab account. I had sold my stock today before even finding that out. I see pain for small cap stocks ahead and there is nothing exciting about this stock or industry. There is a lot of competition for radio. A lot of radio stocks having poor earnings this quarter and are suggesting challenging times ahead. I'm going to look for the next stock or stocks to buy but going to hold off a little bit until we get deeper into this correction we are in.
i really hope we get some support at this level. i think we will. I can't see how we get any more selling here so i bought my shares back that i had sold. We got to find some support here.
i saw that. go to the radio ink website and look for an article written by ron robinson titled Talent- no "cool" required. He is pretty much saying smulyan is getting it all wrong by focusing too much on a cool next radio.
on a day when coleman insights released their 2nd part of their research which is saying there is a strong demand for next radio, we get a big drop in price with a lot of volume. just what you would expect. i hope we don't go lower than 2.5. Lets hope this was the bottom. must be institutions and mutual funds leaving.
well maybe this is the standard in the radio broadcasting industry. i've never listened to a cmls conference call before but I have listened to Emmis communication's calls before and they only accept questions via e-mail and they get to pick which ones they answer during the call. That probably upsets a lot of investors as they think they are hiding something. Last qtr, emmis said their industry was weak overall so maybe it carries over to cmls.
seems like the same thing EmmS is trying to do.
it would be nice if a bigger company acquired EMMS and Smulyan got relieved of his CEO position. I don't understand why the CEO and CFO get paid so much salary. Last year, CEO got 2.3 MIL and CFO got 3.3 MIL. Seems pretty large considering net income from operations was only 45 MIL. I think by owning this stock, we are betting on future growth for the company. Can they double their net income is the question and they need accelerating revenue growth to do that and currently, revenue growth in this industry is not very strong. The key question is, will next radio be able to help accelerate growth for the industry.
the IWC index has been such a good performer all throughout last couple years. It looks like it peaked in March, right when the insiders sold a lot of stock. during last conference call, the radio local market revenue was down for the industry so maybe that signals weakness. If GDP grows, that would signal the economy is getting stronger and i would expect revenue to increase. I agree that GDP is likely to improve in next couple quarters. I am going to listen to the Cumulus Media conference call which is on Aug 6th. I want to see how they perceive the radio broadcasting industry and want to see if they mention anything about growth due to the next radio initiative. I have a feeling they will be very bullish on the industry.
I did see that there was an enterprise value investment portfolio that sold EMMS on 7/15. They had a 1.2% portfolio allocation and sold it so they owned nothing. If you click the market pulse link underneath the message board link on yahoo finance, you'll see that.
i figure the risk to the downside out ways the potential gains to the upside. I think the chance of a surge higher here is not good. It seems like it is more probable that the stock goes lower.
if the FM chip in smart phones is activated, more people could listen radio and maybe that could help generate growth for radio broadcasters? Any thoughts?
i think it is valuable to the consumer, or at least i personally find it valuable but i'm not really sure on how much revenue growth it can deliver. Is it going to be in every cell phone and if so, how can you get revenue growth out of that?
The CEO owns a big % of the company so he has some incentive to deliver to the shareholders. I do know that he got paid a very large salary last year, so that could be another reason the CEO is disliked so much. Putting all that aside, I think the company is generating good cash flow which makes the stock look cheap based on the current price. It would be nice to know if other radio broadcasting companies are talking about next radio because if it is going to be successful, all the broadcasters will be benefiting. Anyone ever hear
another company mention it? I had always thought EMMS would benefit the most from it because they cleaned up their balance sheet and got rid of a lot of debt that was owed. With good future cash flows i would think they could pay down more debt and then possible pay a dividend or buy back stock all of which would increase shareholder value in the future. I believe you have to look at the industry as a whole and if you think radio broadcasting industry is an attractive investment, EMMS should be in a good position to capitalize on that. Historically, the industry has been out of favor with investors so you can't really blame the poor stock activity all on the greedy CEO.