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Strategies & Market Trends : 50% Gains Investing

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From: scbeachbum	7/9/2023 11:10:23 PM
	of 118717

CMLS...radio stations. CMLS has been paying down debt and repurchasing shares, having retired another 9.8% of the outstanding last month in a dutch tender offer. The real driver there is asset value. There was a good piece on SeekingAlpha about it. They own 404 Radio stations, sold one recently in NY for $7.3M they are selling another one in Detroit for $10M. They market cap of the company is $80M and they have $700M in debt and $118M in cash. They sold a cluster of stations in NY for a $103M. If you look at the big cities they operate in and most have "clusters" they could very easily sell off stations in pieces pay off the debt and it's a massive return to shareholders. They rejected a buy out last year for $17 a share as "undervalued" and since then did a dutch tender for $14.50 a share and a more recent one plus open market purchases retiring over 20% of the outstanding. The value certainly seems to be there for a more than 50% more, perhaps a multi-bagger opportunity here. Radio is also cyclical in that stations see big years in election years and it drops off in non-election years, so their core business should start to see election ad ramp up soon too.

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