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Tue, May 31, 2011

WMS, SGA, EVC, MBND, GTN, BLC, Gaming Stocks Undervalued


Published on 2011-05-31 07:10:30 - WOPRAI
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May 31, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Gaming sector and these stocks are the most undervalued as of today. WMS INDUSTRIES INC (NYSE:WMS), SAGA COMMUNICATIONS INC-CL A (AMEX:SGA), ENTRAVISION COMMUNICATIONS-A (NYSE:EVC), MULTIBAND CORP (NASDAQ:MBND), GRAY TELEVISION INC (NYSE:GTN), BELO CORPORATION-A (NYSE:BLC) 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               
     WMS        WMS INDUSTRIES INC                  $30.83         $40.06         23.00% Undervalued          Gaming                 
     SGA        SAGA COMMUNICATIONS INC-CL A        $33.98         $39.24         13.40% Undervalued          Broadcasting - Radio TV
     EVC        ENTRAVISION COMMUNICATIONS-A        $2.14          $5.95          64.00% Undervalued          Broadcasting - Radio TV
     MBND       MULTIBAND CORP                      $3.25          $3.72          12.60% Undervalued          Broadcasting - Radio TV
     GTN        GRAY TELEVISION INC                 $2.64          $4.60          42.60% Undervalued          Broadcasting - Radio TV
     BLC        BELO CORPORATION-A                  $7.74          $8.23          6.00% 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.

WMS INDUSTRIES INC (NYSE:WMS) - WMS Industries Inc. engages in the design, manufacture, and distribution of gaming machines, and video lottery terminals (VLTs) for customers in gaming jurisdictions worldwide. The company offers video gaming machines, mechanical reel gaming machines, and video poker gaming machines under Bluebird, Bluebird2, and Twinstar brand names. It also sells replacement parts, conversion kits, amusement-with-prize gaming machines, and used gaming machines, as well as equipment manufactured under original equipment manufacturing agreements to casinos and other licensed gaming machine operators. In addition, the company involves in licensing its gaming themes and other intellectual property to third parties; and leasing of gaming machines and VLTs to casinos and other licensed gaming machine operators. Further, it engages in gaming operations business that include providing participation games, such as wide-area progressive participation games under the brand names, such as MONOPOLY GRAND HOTEL, BIG EVENT, CLINT EASTWOOD, POWERBALL, TOP GUN, THE WIZARD OF OZ, TIME MACHINE, Reel em In Compete To Win, and JOHN WAYNE; local-area progressive participation games under the Jackpot Party Progressive, Life of Luxury, GREEN ACRES, THE DUKES OF HAZZARD, and HAPPY DAYS brands; stand-alone participation games under the MONOPOLY and PRESS YOUR LUCK brands; casino-owned daily fee games; leased for-sale games; and centrally determined systems. The company was formerly known as Williams Electronics, Inc. WMS Industries Inc. was founded in 1946 and is headquartered in Waukegan, Illinois.

SAGA COMMUNICATIONS INC-CL A (AMEX:SGA) - Saga Communications, Inc., a broadcast company, engages in the acquisition, development, and operation of radio and television stations. The companys radio stations employ various programming formats that include classic hits, adult contemporary, classic rock, news/talk, country, and classical. Saga Communications owns and/or operates various television stations comprising two CBS affiliates, one ABC affiliate, two Fox affiliates, one Univision affiliate, one NBC affiliate, one MYTV affiliate, and one Telemundo affiliate. As of March 4, 2010, it owned or operated 61 FM and 30 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations, and 4 low-power television stations. The company serves various markets, including Bellingham, Washington; Columbus, Ohio; Norfolk, Virginia; Milwaukee, Wisconsin; Manchester, New Hampshire; Des Moines, Iowa; and Joplin, Missouri. Saga Communications, Inc was founded in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

ENTRAVISION COMMUNICATIONS-A (NYSE:EVC) - Entravision Communications Corporation, together with its subsidiaries, operates as a diversified Spanish-language media company. It utilizes a combination of television and radio operations to reach Hispanic consumers in the United States, as well as the border markets of Mexico. It operates in two segments, Television Broadcasting and Radio Broadcasting. The Television Broadcasting segment owns and/or operates Univision-affiliated television stations in the United States. It offers an entertainment magazine, a news magazine, and national news, as well as local news produced by its television stations; airs various shows, including novellas, talk shows, news magazines, and reality shows, as well as specials; and childrens programming, such as sports, reality, comedy shows, and movies. As of December 31, 2009, this segment owned and/or operated 53 primary television stations located primarily in California, Colorado, Connecticut, Florida, Massachusetts, Nevada, New Mexico, Texas, and Washington, D.C. The Radio Broadcasting segment owns and operates radio stations located in the Hispanic markets in the United States. It combines network and local programming with local time slots available for advertising, news, traffic, weather, promotions, and community events. This segment owned and operated 48 radio stations, including 37 FM and 11 AM located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico, and Texas. The company was founded in 1996 and is headquartered in Santa Monica, California.

MULTIBAND CORP (NASDAQ:MBND) - Multiband Corporation and its subsidiaries engage in the provision of voice, data, and video services to multi-dwelling unit and single family home customers in the United States. The company operates in two segments, Home Service Provider (HSP) and Multi-Dwelling Unit (MDU). The HSP segment engages in the installation and servicing of DirecTV video programming, Internet, and home security systems for the residents of single family homes. The MDU segment serves as a master service operator for DirecTV, a provider of satellite television service. This segment offers satellite television services to residents of multi-dwelling units through a network of affiliated operators. As of March 15, 2010, Multiband Corporation had approximately 120,000 owned and managed subscriptions. The company was formerly known as Vicom, Incorporated and changed its name to Multiband Corporation in July 2004. Multiband Corporation was founded in 1933 and is based in New Hope, Minnesota.

GRAY TELEVISION INC (NYSE:GTN) - Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

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.

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