Yesterday’s SBS Broadcasting buyout deal at 15 times 2005 management guidance for EBITDA has ramifications for valuation on Central European Media Enterprises (CETV). CETV is a faster growing company than SBTV because it is fully dedicated to higher growth emerging ad markets in Central and Eastern Europe. Consequently, I would argue that CETV would sell […]
SBS Broadcasting confirmed recent market rumors and announced this morning that it was accepting an unsolicited 46 Euro ($56) buyout offer from a European private equity firm. Below please find my comments as I was conducting my analysis beginning with my thoughts prior to the open of trading and finishing up with my conclusions after […]
SBS Broadcasting (SBTV) shares jumped about 8% on Monday after a website reported that the company had held “informal discussions” with an unnamed suitor. The story said that a spokesman for SBS had no comment on rumors or speculation. I think a takeover of SBTV is plausible and while the primary reason behind my bullish […]
Disney (DIS) shares fell 3% on Wednesday in reaction to the company’s 3Q05 earnings report. The quarter was decent but I found the 3Q results disappointing as I was expecting an unequivocally strong report to act as a catalyst for the shares. However, I did not find the results to a major miss and was […]
Lions Gate Entertainment (LGF) shares traded down about 7% on heavy volume after the company reported 1Q06 earnings last Wednesday. EPS and EBITDA (operating cash flow) missed estimates by a wide margin but revenues were in line and free cash flow was better than expected. On the conference call, management reaffirmed guidance for FY06 assuming […]
Central European Media Enterprises (CETV) shares responded positively to its earnings announcement last Thursday as the company reported a solid quarter and maintained a confident and bullish stance on its conference call. As is often the case with CETV’s quarters, there was some variance on a country by country basis, but the overall thesis is […]
I was out of town and unable to post on the August Model Signals last week. As clients have seen by now, the new signals led to a trade in the ETF portion of their portfolios. Specifically, the Market Capitalization model shifted from a mid cap signal to a small cap signal. Consequently, all holdings […]
I had to jump in a car to head East on some college visits with my son and didn’t get a chance to provide some color on the SBS Broadcasting (SBTV) conference call that took place on July 28th. As the call started at 10 a.m. ET, the shares were down sharply by almost $3. […]
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