Starting a small exploratory position in CJR.
I've taken small profits today in another "diversified broadcasting company", SBGI, purchased 5/25/00, by selling half my remaining position as SBGI moves up from recent lower prices. Issues with SBGI are that they are family controlled, and their business is difficult to understand. I have the same issue in comprehension with CJR, but at its current relatively low price, I'm willing to make a small bet that CJR will do as well or better than SBGI.
I also added to my position in KT today. A firm which was organized to take a significant minority position in KT common at 8, is now and once again reevaluating its terms of cash and/or convertible stock, and so KT stock has dropped (again). KT is having another lousy year, they are selling off part or parts of their business (at a loss), and they eliminated their dividend. Tangible book value is about $7.7/sh, and insiders have bought $1M worth of stock over the past couple of years (none this year though) in 9-12 range. Given that KT's a conglomerate (fairly easy businesses to separate and divest), that there's interest still in parts or all of its businesses, that the company has been profitable in several recent years, that the stock's near a ten-year low, I'll bet that KT might recover to 8-10 range if the economy improves or a decent offer for the company materializes. |
