CCMO, BLC, VVTV, Broadcasting - Radio TV Stocks Undervalued
May 31, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Broadcasting - Radio TV sector and these stocks are the most undervalued as of today. CC MEDIA HOLDINGS INC-A (OTC:CCMO), BELO CORPORATION-A (NYSE:BLC), VALUEVISION MEDIA INC-A (NASDAQ:VVTV) 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 CCMO CC MEDIA HOLDINGS INC-A $6.12 $7.85 22.00% Undervalued Broadcasting - Radio TV BLC BELO CORPORATION-A $7.74 $8.23 6.00% Undervalued Broadcasting - Radio TV VVTV VALUEVISION MEDIA INC-A $6.93 $13.85 50.00% Undervalued Broadcasting - Radio 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.
CC MEDIA HOLDINGS INC-A (OTC:CCMO) - CC Media Holdings, Inc. operates as a media and entertainment company primarily in the United States. The company operates in three segments: Radio Broadcasting, Americas Outdoor Advertising, and International Outdoor Advertising. The Radio Broadcasting segment owns a portfolio of stations that offer an assortment of programming formats, including adult contemporary, country, contemporary hit radio, rock, and urban and oldies to a total weekly listening base of approximately 113 million individuals. It also operates Premiere Radio Network, a national radio network that produces, distributes, or represents approximately 90 syndicated radio programs and services for approximately 5,000 radio station affiliates, as well as owns various sports, news, and agriculture networks. As of December 31, 2009 this segment owned 894 domestic radio stations, including 260 AM and 634 FM radio stations. The Americas Outdoor Advertising segment owns or operates approximately 195,000 displays consisting of billboards, street furniture and transit displays, airport displays, mall displays, wallscapes, and other spectaculars. The International Outdoor Advertising segment includes its operations in Asia, Australia, the United Kingdom, and Europe. It owns and operates various displays that consist primarily of street furniture, transit displays, billboards, mall displays, smartbike schemes, wallscapes, and other spectaculars. This segment owned or operated approximately 639,000 displays. The company was founded in 1972 and is headquartered in San Antonio, Texas.
BELO CORPORATION-A (NYSE:BLC) - Belo Corp. operates as a television company. The company owns and operates 20 television stations, including ABC, CBS, NBC, FOX, CW, and MyNetwork TV affiliates, and their associated Web sites, in 15 markets across the United States. It also owns two regional cable news operations, such as Texas Cable News in Dallas/Fort Worth, Texas, and Northwest Cable News in Seattle/Tacoma, Washington; and two local cable news operations, including 24/7 NewsChannel in Boise, Idaho, and NewsWatch on Channel 15 in New Orleans, Louisiana. In addition, company holds ownership interests in two other cable news channels. Further, it manages one television station through a local marketing agreement in San Antonio, Texas. The company was founded in 1842 and is based in Dallas, Texas.
VALUEVISION MEDIA INC-A (NASDAQ:VVTV) - ValueVision Media, Inc., a multi-media retailer, engages in marketing, selling, and distributing its products directly to consumers through various digital platforms. It sells mens and womens watches, collectible coins, and other collectible items; gold, gemstone, and fashion jewelry for men and women; and consumer electronics, including desktop and notebook computers and related accessories, as well as home electronics, such as LCD televisions and digital cameras. The company also offers apparel, fashion accessories, and health and beauty products comprising clothing and footwear for women; handbags and other fashion accessories; and cosmetics and personal care items, as well as home and other products, consisting of mattresses, sheet sets, lamps, and home furnishings. Its principal form of multi-media retailing is its television shopping network, ShopNBC, which markets brand name and private label products. The companys other distribution channel includes its Internet retailing Web sites, such as ShopNBC.com and ShopNBC.TV, which provide a range of consumer merchandise, including various products being featured in its television programming. It also provides its products through other digital platforms comprising mobile and social media. ValueVision Media has strategic alliances with GE Capital Equity Investments, Inc. and NBC Universal, Inc. The company was founded in 1990 and is headquartered in Eden Prairie, Minnesota.
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