Does anyone follow Tescorp (TESC/Nasdaq), an Austin-TX based firm that is acquiring and developing Latin American cable television and communications properties? This looks like a great time to buy...
On Feb 18, Tescorp announced their 3rd Q results, for which net revenues increased 27%; during the Q, they made several key acquisitions in Argentina (including Comodoro Rivadavia TV and a joint-venture interest [96%] of Cable Viedma and Televiedma) to further solidify their market position in the strategic Patagonia region.
In late '96, TESC appeared in Fortune magazine as a selection of the month. This article can be read at:
pathfinder.com@@hNVTbwYAn5PEi1Xg/fortune/1996/961028/ctw.html
At the time of the article, Fortune's analyst was quoting a price of
3 and 1/8 and targeting a price of 9 in 12 months. The stock rose modestly but has recently declined. It is definately undervalued and UNDERFOLLOWED, and now that the price is approaching 3 1/8 (TESC hit
3 3/8 today..) it appears to be a BUYING opportunity. As TESC increases its subscriber base, its cash flow will continue to improve.
This will translate into a growing stream of earnings in a marketplace w/high demand for their product. Looking at TESC's 2 yr chart, it usually maintains support at 3.5, having only dived below this (other than NOW/RECENTLY) during the period from Aug-Oct '96 (when the Fortune article was written) and a small window in DEC.
For those that doubt TESC's ability to generate cash, look at the co.'s preferred stock (TESCP - $4.75 - $5.00) which has a HEFTY 10% yield! What makes TESC most attractive is the possibility that it may be bought out... I recently heard from someone w/connections to the co. that a "larger competitor" has re-expressed interest (alluded to in Fortune article). Has anyone else heard anything?
To all: Your comments / feedback / opinions are most welcome...
What do YOU think? |
