VIAB (Viacom Class B shares) formerly CBS Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : VIAB (Viacom Class B shares) formerly CBS

VIA 33.50

+3.0%

2:37 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Patrice Gigahurtz who wrote (2640)	9/29/1998 2:15:00 PM
From: MGV	of 4613

Comment on Today's Downgrade that wasn't a downgrade RESEARCH ALERT--Morgan cuts CBSprice target biz.yahoo.com The first point is that the analyst did not change his rating. It was and remains "outperform." That point is telling in two ways. First, out of 17 analysts, CBSis rated strong buy by 12 and buy (including outperform) by 5. This guy was in the less bullish camp all along. That means he is in the "show me" camp. Second, he revised his target by 21.4% downward (from 42 to 33) based on only a 6.6% revision on cash flow. That means he thinks the cash flow multiple on CBS will retract from 35x to 29x. Yet, the industry average multiple is 38x. In other words, he is projecting either that we are in a bear market and the whole industry will tumble or that CBS is one of the more unattractive media companies out there. Yet he retains an outperform rating on it. That gentlemen and ladies is incongruent and convoluted analysis. In fairness to the analyst, I do not have his full report but, the numbers do not add up. I'm buying here - slowly but steadily.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next