DWA, OUTD, LGF, CKXE, Movies and TV Stocks 8.99% undervalued
February 28, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Movies and TV sector and these stocks are the most undervalued as of today. DREAMWORKS ANIMATION SKG-A (NASDAQ:DWA), OUTDOOR CHANNEL HOLDINGS INC (NASDAQ:OUTD), LIONS GATE ENTERTAINMENT COR (NYSE:LGF), CKX INC (NASDAQ:CKXE) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry DWA DREAMWORKS ANIMATION SKG-A 27.32 30.02 8.99% undervalued Movies and TV OUTD OUTDOOR CHANNEL HOLDINGS INC 7.95 8.18 2.76% undervalued Movies and TV LGF LIONS GATE ENTERTAINMENT COR 5.96 7.1 16.11% undervalued Movies and TV CKXE CKX INC 3.64 7.26 49.86% undervalued Movies and TV
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
DREAMWORKS ANIMATION SKG-A (NASDAQ:DWA) - DreamWorks Animation SKG, Inc. develops and produces animated feature films. The company also offers television specials and series, live entertainment properties, online virtual worlds, and related consumer products. It also produces animated feature films for theatrical, home entertainment, television, and merchandising and licensing markets. As of February 23, 2010, the company had theatrically released 18 animated feature films, including the franchise properties, Shrek, Madagascar, and Kung Fu Panda. It has strategic alliances with McDonalds, Hewlett-Packard, Intel, Samsung Electronics Co. Ltd., and Royal Caribbean International. DreamWorks Animation SKG, Inc. was founded in 1985 and is headquartered in Glendale, California.
OUTDOOR CHANNEL HOLDINGS INC (NASDAQ:OUTD) - Outdoor Channel Holdings, Inc., through its subsidiaries, operates as an entertainment and media company in the United States. The company operates in two segments, The Outdoor Channel and Production Services. The Outdoor Channel segment operates Outdoor Channel, a national television network that focuses on traditional outdoor related lifestyle programming. It focuses on various traditional outdoor activities, such as hunting, fishing, and shooting sports, as well as off-road motor sports and other outdoor related lifestyle programming. This segment primarily serves sportsmen and outdoor enthusiasts. The Production Services segment engages in the production, development, and marketing of sports programming. This segment produces various programs for the companys network or for third parties, including bowling, rodeo, golf, softball, hunting, and fishing. It also operates as an advertising and sponsorship representative; and provides various marketing services, including traditional agency services and Web services. In addition, this segment designs, manufactures, and operates suspended mobile aerial camera systems. The company was founded in 1984 and is headquartered in Temecula, California.
LIONS GATE ENTERTAINMENT COR (NYSE:LGF) - Lions Gate Entertainment Corp. engages in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand, and digitally delivered content. The company operates through three segments: Motion Pictures, Television Production, and Media Networks. The Motion Pictures segment engages in the development and production of feature films; acquisition of North American and worldwide distribution rights; North American theatrical, home entertainment, and television distribution of feature films produced and acquired; and worldwide licensing of distribution rights to feature films produced and acquired. The Television Production segment involves in the development, production, and worldwide distribution of television productions, including television series, television movies and mini-series, and non-fiction programming. The Media Networks segment includes TV Guide Network, a general entertainment cable network in the United States, including TV Guide Network On Demand; and TV Guide Online, an online navigational tool, as well as provider of television listings, and video and other entertainment content. This segment also provides programming distribution rights to multi-system cable operators and digital broadcast satellite providers; and sells advertisements on its television channel and related online media platforms. It distributes a library of approximately 8,000 motion picture titles and approximately 4,000 television episodes and programs directly to retailers, video rental stores, DVD rental kiosks, and pay and free television channels in the United States, Canada, the United Kingdom, and Ireland, as well as through various digital media platforms; and indirectly to other international markets through subsidiaries and various third parties. Lions Gate Entertainment Corp. was founded in 1986 and is headquartered in Vancouver, British Columbia.
CKX INC (NASDAQ:CKXE) - CKX, Inc., together with its subsidiaries, engages in the ownership, development, and commercial utilization of entertainment content worldwide. It holds rights to the name, image, and likeness of Elvis Presley, and certain music and other intellectual property created by or related to Elvis; the operations of Graceland; the rights to the name, image, and likeness of Muhammad Ali, as well as certain trademarks and other intellectual property related to Muhammad Ali; and proprietary rights to the IDOLS and So You Think You Can Dance television brands. The company also collects royalties from certain Elvis Presleys motion pictures, television specials, and recorded musical works and music compositions, as well as operates the Graceland museum and related attractions, and retail establishments, including Elvis Presleys Heartbreak Hotel and other real estate assets. In addition, CKX, Inc. involves in the creation and production of entertainment properties, including American Idol series in the United States and local adaptations of the IDOLS television show format airing. It also offers television, music, sponsorship and merchandising, touring, and artist management services. Further, the company engages in talent management; and produces motion pictures and television programming. CKX, Inc. was founded in 1986 and is based in New York, New York.
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