Nexstar Media Group (NXST) has been one of Northlake’s best performing stocks this year. The shares are up 38%, including a gain of about 10% since the company reported third quarter earnings last week. NXST has attracted investors due to its highly accretive acquisition of Tribune, which makes NXST the largest owner of local TV […]
Nexstar Media Group (NXST) reported 2Q results very slightly below consensus estimates. All guidance was reiterated. The company guides based on average 2018 and 2019 results given the highly cyclical nature of revenues due to political and Olympic advertising only occurring in even years. Management is careful about guidance and admitted on the call that […]
Sam Zell’s ESOP driven takeover of Tribune (TRB) is being met with a lot skepticism by the mainstream business press and newspaper industry observers. The gist of the skepticism is that employees are being asked to take on a huge risk by using their retirement savings to finance a very highly leveraged buyout of a […]
Tribune (TRB) reported slightly better than expected 4Q06 earnings with adjusted EPS coming in at 65 cents against a consensus estimate of 61 cents. Revenues also come in ahead of expectations at $1.47 billion vs. a consensus estimate of $1.43. 4Q06 contained an extra week compared to 4Q05 so it is possible some of the […]
My colleague at StreetInsight.com, Chris Atayan, made a really good point that the failed Tribune (TRB) auction shows that private equity isn’t a cure for everything. I think another conclusion that can be drawn from the TRB auction is that private market value does not always noticeably exceed public market value. TRB shows that the […]
Newspaper stocks rose strongly yesterday after the Wall Street Journal reported that private equity groups were showing an active interest in Tribune (TRB). On its earnings call last week, TRB reiterated that it hoped to have the strategic review complete by the end of 2006. The Journal is reporting that TRB prefers to sell itself […]
Tribune (TRB) reported an unimportant quarter form the perspective of the near-term stock price. It is not just that the near-term will be dominated by the outcome of the strategic review due by year end. The quarter was just more of the same, which means bad, and won’t move the needle at all. In fact, […]
Yesterday, Tribune (TRB) gave up about 25% of its gains since announcing a settlement with the Chandler Family and creation of a committee of independent directors to look at shareholder enhancement opportunities. Supposedly everything is on the table, including the spilt up or outright sale of the company. Investors expecting a big payday due to […]
Tribune (TRB) shares had a big pop last Tuesday after the company announced results of its dutch auction. There was no follow-through since then and the shares are trading just below the $32.50 price at which the tender was complete. TRB is buying 45 million shares at $32.50, the top end of auction range. The […]
One of the theories behind breaking up Tribune (TRB) is that the broadcast television assets are worth a significant premium to the current valuation of TRB shares. Recent TV station sales support this idea but an article last week in the Wall Street Journal there outlined the pressure that local TV stations are feeling. It […]
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