CJREF, CTCM, SNI, CCMO, 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. CORUS ENTERTAINMENT INC-B SH (OTC:CJREF), CTC MEDIA INC (NASDAQ:CTCM), SCRIPPS NETWORKS INTER-CL A (NYSE:SNI), CC MEDIA HOLDINGS INC-A (OTC:CCMO) 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 CJREF CORUS ENTERTAINMENT INC-B SH $20.89 $22.85 8.60% Undervalued Broadcasting - Radio TV CTCM CTC MEDIA INC $20.00 $22.94 12.80% Undervalued Broadcasting - Radio TV SNI SCRIPPS NETWORKS INTER-CL A $50.18 $55.93 10.30% Undervalued Broadcasting - Radio TV CCMO CC MEDIA HOLDINGS INC-A $6.12 $7.85 22.00% 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.
CORUS ENTERTAINMENT INC-B SH (OTC:CJREF) - Corus Entertainment, Inc., a media and entertainment company, provides radio and television broadcasting services in Canada. The company offers pay television, advertising, and television broadcasting services. It owns and operates 52 radio stations; various television stations, including YTV, Treehouse, W Network, CosmoTV, VIVA, CMT, Nickelodeon, DUSK, Movie Central, HBO Canada, and Encore Avenue; and 3 local over-the-air CBC-affiliated television stations comprising CHEX-TV in Peterborough, Channel 12 - CHEX-TV in Durham, and CKWS-TV in Kingston, as well as owns interests in TELETOON, TELETOON Retro, Telelatino, and the Food Network Canada. The company also develops, produces, and distributes animated content; and publishes childrens books. The company was founded in 1998 and is headquartered in Calgary, Canada.
CTC MEDIA INC (NASDAQ:CTCM) - CTC Media, Inc. operates television networks that offer entertainment programming in the Russian Federation. The company operates CTC Network targeted at 6-54 year-old viewers; Domashny (Home) Network targeted at 25-60 year-old women; and DTV Network targeted at 25-54 year-old viewers. It also operates Channel 31, a television network in Kazakhstan; a television channel in Uzbekistan; and a broadcasting group in Moldova, as well as two in-house production companies, including Costafilm and Soho Media, which offer television series, sitcoms, and shows. The companys CTC Television station group includes 45 owned-and-operated stations and unmanned repeater stations; Domashny Television station group consisting of 32 owned-and-operated stations and unmanned repeater stations; and DTV Television station group comprising 31 owned-and-operated stations and unmanned repeater stations. CTC Media was incorporated in 1989 and is headquartered in Moscow, the Russian Federation.
SCRIPPS NETWORKS INTER-CL A (NYSE:SNI) - Scripps Networks Interactive, Inc. operates as a lifestyle content and interactive services company in the United States and internationally. The company operates through two segments, Lifestyle Media and Interactive Services. The Lifestyle Media segment includes national television networks, such as Home and Garden Television, Food Network, Travel Channel, DIY Network, Great American Country, Fine Living Network, and SN Digital, which includes Web sites that are associated with the aforementioned television brands; and other Internet-based businesses serving food or shelter related categories, such as RecipeZaar.com, HGTVPro.com, and FrontDoor.com. The Interactive Services segment provides online comparison shopping service, Shopzilla, and its related online comparison shopping brands, bizrate and beso. Its product comparison shopping services help consumers find products offered for sale on the Web by online retailers. Shopzilla also operates a Web-based consumer feedback network within the bizrate brand that collects millions of consumer reviews of stores and products each year. The company is headquartered in Cincinnati, Ohio. As of July 01, 2008, Scripps Networks Interactive, Inc. operates independently of EW Scripps Co.
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.
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